Engie Brasil Ene Sa S/Adr

the conference call to announce the results of the first quarter of 2023 for Engie Energia. I am Rafael Balzio, investor relations manager, and I would like to say a few things before we start the call. Right now, everyone that is connected is in listen-only mode. Later on, we are going to have a questions and answers session when participants will be able to ask their questions through the Q&A tool in Zoom. This conference call is being recorded in our website, www.ng.com.br slash investors. There you can find the files, the presentation, and the press release for the company's earnings, in addition to our reports and other documents filed yesterday at CVM, where you can see details of the financial statements, operational results, ESG indicators, and advances in implementation of projects, among other factors that were important in the period. Before continuing, I would like to say that forward-looking statements made in this conference call relative to the company's business prospects should be regarded as forecasts, and they're subject to change because they refer to future events. As a reminder, journalists who want to ask questions may ask them by e-mail. Send them to the company's press services. And to present the performance of Engie Brazil Energia in the first quarter of 2023, today we have Mr. Eduardo Satamini. CEO and IRO, Marcelo Malta, a CFO, and also Eduardo Takamori, appointed yesterday by the Board of Directors to take office as CFO as of June 1st, 2023. Now, I would like to give the floor to Satamine to start the presentation. Satamine, please. Good morning, everyone. Once again, it's a pleasure to be with you here and to be Present the solid results of Engie Energia. And as usual, the company's resilient results are a result of our long-term strategy for our assets and contract levels. We're going to go straight to slide number five. where we can see our financial highlights. And then we are going to talk about qualitative results of the company in a quarter. And if you look quarter on quarter, we can see an evolution of the company's EBITDA of 9.1%. And when we look the first months of the year, we also grew, which is a demonstration and an evidence that our strategy is working. So the result drivers on the right-hand side of the slide, you can see that transmission segment, RAP, the annual revenue adjustment, 100 million BRL. So now we have another 100 million. We also have 86 million. The price increase related to escalation of inflation in our indexed contracts and a little bit more energy volume that was settled. Tank, once again, is a surprise with better results than expected. 75 million with very specific contributions. in the adjustment of fees, and another important factor, which is the contribution of the substitution of the operator. The previous operator was Transpetrol, and now we have Engie operating with costs that are much more suited to the levels of operation. We also had the net result of CCE, the Chamber of Electric Energy Trade. This is more favorable. We had lower fuel consumption, obviously, because of our decision to dispatch from Pampa power plant and also reduction of energy purchase, also associated to the sale of George Lacerda and also... because of higher generation, royalties, charges, and other costs. There were other elements that contributed to costs. So we had 9.1 EBITDA, and net income, we had a significant increase, especially because of the reduction or drop of inflation in a period. So the quarter's inflation was 2.09% as compared to 320 in Q122 with a significant effect. And this was one of the important effects that we identified for the improvement of net financial result that was 104 million BRL. And this contributed to our net earnings. So, we had 36.7% higher than last year. Now, the non-financial highlights on the next slide. As we said before, here you can see So Graal Azul transmission system is fully operational, and we have already started using Santo Agostinho wind complex. We had the first generator unit. Today we have 11 units already operational, three already commercial, and eight in test mode. And we hope that it will be fully operational by the end of the year. This is what we predict. Our Fitch ratings will be affirmed as long-term national rating AAA. It's the 11th year in a row with rating. And we always monitor this in our recognition by the transparency award, by showing that our rating is related to the necessary transparency and value to be credible, respected by everyone. We have also signed an MOU with Invest Paraná last quarter for the production of green hydrogen projects in large scale, and Invest Paraná is supporting us to develop this process for us to start producing green hydrogen at industrial scale in Brazil. On slide number seven, we approved the payout of complementary dividends for the fiscal year of 2022, amounting to almost 1.5 billion BRL, 1.78 per share. Shares will be traded ex-dividend as of May 9, and the payment date will be decided upon later on. decision by the management board. So this is part of the management of flow and our investment obligations. The other highlight was the release of our sustainability report. I invite you, ladies and gentlemen, to take a look in our website. where you can see our climate journey. You can see details. We'll be talking about investments in the communities where we operate and our... integrity program and ethics committee, all monitored by the board of directors. So you have a very, there's lots of information there, and I would like to invite you to take a look at our website, our sustainability report. Now our ESG KPIs, so we are scaling up our assets. this is the trajectory we are in now so we sold the asset in pampa of course in the first quarter we had very low intensity it's been going our dispatch from pampa we decided not to dispatch in the first quarter total emissions have dropped significantly because of bad water input and consumption. So as a priority is to be used for thermal electricity. We have increased the number of women or the percentage of women in the workforce So we've been creating opportunities for gender diversity to take place, not just at administrative level. We are almost 50-50 close to that. In some areas, we have more women than men even. But we are giving opportunity also in operational area with many diversity programs in the regions where we operate. Bahia, Rio Grande do Norte, Santa Catarina. We have projects and specific training for women operators. And as to our investments in social responsibility, with... We've been monitoring so that we can use 100% of the incentivized resources. So we are slightly more cautious with these expenses. thinking of the total amount that we are going to have so that we may spend the funds, the social funds. On the next slide, you can see energy sales. As usual, we're highly contracted in the short term. This is part of the resilience of our business. As you're going to see later, we have 65% of our revenues related to regulated activities that are contracted in the long term. But in terms of sales of energy, we have something like 35% of our total volume. But even those 35% are reasonably well contracted in the long term. And as you can see, the uncontracted Amounts of 23 to 25 are very small, demonstrating that this is a structural reserve of GSF plus a little bit more energy that we are operating in a market. Diversification of our free energy is very important so that we can dilute the specific risk of one manufacturing segment and this is how we are always selling energy and we end up protecting our average price from major fluctuations. We had a good quarter in terms of sales despite the low prices without any major impact in our average prices because of the volumes of energy that we sold in the past. Now, on slide number 12, you can see our energy commercial strategy. We've been seeking quality At times of low prices, our customers... have prospects of growing in specific industries. We have also had during 2021 a reduction of our total number of customers because of the lack of energy. And now we are likely to grow even more in the area of small customers with small units with slightly better margins. Next slide, slide 14, to talk about expansion. As we said, Santo Agostinho wind complex is in construction with 52% of the project has already been completed, and we are testing it. We have eight generating units. If I'm not mistaken, we have already 11. of them being tested, and then we are commissioning wind turbines to deliver this complex fully operational by the end of the year. We also have Gavião Real transmission project. We already have the licenses. They were issued in the first quarter, and the topography and... We are in surveillance, in surveying, sorry. We are underway. And with regards to NEL CAPEX, we have closed the contract with a reduction of about 30% in CAPEX, thereby providing a profitability to this enterprise, which is an enterprise that is going to complement our transmission system. The other project is Asurwa wind project. So environmental licenses have been partially issued. We can start our works and we have started construction. without any major surprises and nothing much new, because it's very much in the beginning. And it's going to be the same for our next slide, for the photovoltaic project in Asusol, We already have the previous license, and we have land contracts that have been signed, and we are going to start construction in Q3 2023. So, Girao, we're always talking about it. We repeat it because the original idea was to transfer this asset to Engie Brazil Energia. There were no developments since we last talked in the beginning of the year when we presented Q4 2022. But as a reminder, there is a possibility that the controller might bring this asset to Engie Brazil Energia, as decided by the board of directors and voted by the majority of minority shareholders advised by the offices and Engie Brazil Energia managers. On slide number 19, you can see our pipeline. We have 1.8 gigawatts of capacity, and the message is do not wait, do not expect major developments in the next months or years while we have a very high energy surplus, which is driving prices down. So our message here is that we need the government to stimulate consumption, and the outflow of all the energy available in the market for prices to recover. And this will stimulate investment in new capacity. And now I'm going to give the floor to Malta to talk about the financial performance. But before, I would like to thank Malta. For the time, he was the CFO of Engie Brazil Energia. Wonderful work, really excellent. And I wish Malta all the best for the new phase in his professional life. He's going now to work with our foundation. And as a little bus with privatization, he will be working and the foundation will become much more important. And we need very good management and Malta will be the one dealing with that challenge in the next few months restructuring. our pension. So Mauro, thank you very much for your contributions, your 18 years that you dedicated to the company and good luck in your new challenge. Thank you, Sata. So now on slide number 21. So here you can see the history of our financial performance. You can see the ROE and ROIC at very high levels that are very consistent. And this demonstrates how solid our financial performance is. On the right-hand side, you can see A few pieces of information that are relevant for our performance from 2016 to 2022, a significant volume of investments, almost 26 billion BRL with high leverage and capital. Also, a significant use of uninstalled capacity, especially for renewable energy, with an increase of 36% at the time we acquired TAG, whose financial performance has been really great. And, yeah, we started transmission, and this was fully successful. Despite very critical times, such as the pandemic, our EBITDA during this period went up 108%. Net income went up by 65%. And we paid out almost 14 billion BRL of dividends. And now what I'm going to say here is, has partly already been addressed by Santamini in his initial explanations. And I'm going to try to give you a little bit more color and details of to give you a more in-depth vision of our variation. So net revenue went down by 4.9%. Most of this reduction is due to the impact in accounting and economic aspects related to transmission. It went down from 502 to 374 if we compare Q122 to Q123. So prices have gone up on average 3.1%. And it's slightly lower than inflation, especially the prices were slightly lower in the recontracting of energy that we had in this period because... of some contracts that matured. Sales volumes went up by 1%, and this is due especially to the acquisition of Floresta and Paracatu that added to our portfolio a significant amount of energy. For CCEE, we had a reduction of $29 million. On the other hand, we had a drop in cost of $66 million, which caused an impact in our impact that was positive by $37 million, and this is a result especially of exports of energy during the period and also an elevation of GSF and spot prices during this period. As to trading, we had a reduction of 64% in revenue, but also in cost, which added 2 million BRL to our EBITDA. As mentioned, we have had a reduction of 128 million in our revenue. coming from IFRIC 12, but we also had a reduction in cost, which caused a positive effect in our EBITDA of 54 million, and the main driver for that was the payment of our financial asset of transmission activities. On the next slide. So on this slide, you can see The result of our equity income, especially TAG, $637 million is the cost of services. Our share was $248 million was contribution to EBITDA and $75 million BRL above and $173 million in terms of result that we have had in the first quarter of 2023. So the reason for this higher result was especially the update of transportation prices and also the reduction of OEM because of the incorporation of the activities that were being conducted by Transpetrol. Here, this is the EBITDA, so it's an elevation of 9.1% between quarters, and if we take out the economic effects of transmission because of IFRIC2 incorporating the elevation of the RAP driven by the beginning of operation of Novistad and Raya Azul, We had an increase of our EBITDA of 13.1%. As mentioned before, we had variation in price and volume and CCE, and these variations were positive in a period. We also had a reduction in fuel consumption at Pampa. and also an increase in our volume of purchases, as mentioned, because of the contract that we signed with Diamante. We had an elevation of costs driven especially by the adjustment by the inflation of our contracts with suppliers, and also because we incorporated the costs of the new investments that we have made along last year. As mentioned before, we had a cash impact of the RAP that we received, and also our equity income in TAG, numbers of 75 million. In terms of net income, we have had a significant increase of 36.7% as a result of the growth in EBITDA, especially, and better financial result in the quarter, especially due to the slowdown of inflation combined with lower financial revenue because of cash consumption of new investments that we need. And then the higher income tax is because of higher EBITDA and better financial result. This is the breakdown of our debt since 2020, and the leverage level remains okay, despite the significant volumes of investments that we have made. and we close the quarter with a net debt over EBITDA ratio of 2.6 times, net debt EBITDA of 2.1. We still have lots of room. to support our growth. And as a reminder, the most restrictive covenant that we have is gross debt EBITDA of 4.5 times and net debt over EBITDA of 3.5 times. This is the debt profile, as Tamine mentioned, and we reaffirmed our AAA rating. Here in the middle, you can see the breakdown of the payment schedule that is very well balanced. And on the right-hand side, you can see the breakdown of debt and the percentages indexed by the IPCA, which is indexed. That also indexes the majority of our energy sale contracts. Duration closed at seven years and two months, and the face cost of our debt is 10.5%. This is our investment, our CAPEX, since 2019, significant volumes of almost 15 billion BRL. And in terms of expected investments for the upcoming three years, we'll be about 12 million, and talking about Santo, Agostinho, Asura, and Asuso. This is our history of dividend payout. Most years, we paid out 100%. And now, in this manner, I end my presentation. And as Satamini said, I am taking on a new challenge as the CFO of our foundation. It will have 6 billion BRL in terms of properties with 6,000 members. Almost 3,000 of them are retired, so there is a major challenge there. and I'll give it over to Takamori, very experienced, very well qualified, and he will certainly be very successful in this role. So, thank you all very much for the time we spent together, and I will remain in the group, in the company, and the person chosen to succeed me is very highly qualified. Now, before giving the floor to Takamori, I would like to thank you once again, introduce Takamori, a professional who started his career here at Engie. He's been working with us ever since he was young. He still looks young. but he has many years of experience. Takamori, please introduce yourself. And then, as of next quarter, he will be here with us, making the presentations and talking to our investors and learning about your needs and answering your questions. Takamori, please, you can introduce yourself. Well, before anything, it's a great honor and pleasure to have been appointed to take office as CFO. I am especially grateful to Satamine and also Mauricio, the chairman of the board for the head trust. My special thanks to Malta for the excellent work he did as CFO. And as you are all aware, you're in the market. He was once again chosen by the best CFO, by the sell side. So I wish Malta full success in the new challenges that you're going to deal with. Well, I've been working in Engie for more than 20 years. I have held many different positions, so I know the business culture and assets very well that have brought me this far. And obviously, financial discipline, strategic vision, consistent in deliveries and transparency, which have made it. possible for us to come this far. And my mission is to keep that formula that was very successful. I'm really excited with the challenge and with you. Sata, the floor is yours. So, thank you, Taka. And the formula is good, but it can always get better. So, we need to have new prospects and this moves our company we always have a discomfort of trying to do things in the best way possible, innovating, and obviously being conservative because we have long-term investors, but always trying to get better and better, and I'm sure that new looks will bring bring new opportunities for improvement. So we're counting on you. We count on Malta to help us. Malta will not be so close, but he will still be helping us. And you're most welcome. Now I think that we can move to the Q&A. Maybe there are some questions already. Yes, we have two questions. And I shouldn't fail to thank Mauro for the partnership. It's impossible to work while investor relations working with the financial department. So I would like to thank very much Mauro Malta and to welcome Takamoto. We have two questions. The first from Guilherme Lima, Southside Santander. He has two questions. The first, he asks us to comment in our interest in joining the capacity auction at the end of the year and which plans we would include in the bid. and what would be the necessary investment? So this is a good question for Takamori that is looking into the possibilities of our capacity of using new units, Alto Santiago, Jaguar, and what is our vision? And Takamori can give his first message. Well, I'm already on the spotlight. So you know a lot about it. Well, it's a very good question. We are not really sure about the capacity needs that Brazil has. There is some surplus in terms of supply, but we will certainly assess the opportunity of complementing the plants of Jaguar and Salto Santiago. These power plants have space, technical capacity. We could add significant capacity to increase the company's installed capacity to permit the absorption of more renewable sources in Brazil. And as a reminder, hydroelectric power plants are essential for the expansion of renewable sources. So, yes, we are confident. It depends on the model that the government uses to take on new investments, but we're sure we will be able to take part in the auction. Thank you, Takamori and Sata. Second question from Guilherme. Could we talk about the energy export dynamics for Argentina? What is the export expectations, pricing levels, and payment dynamics? Well, excellent. Well, the expert is here. We've been working together on this, trying to measure with CCE the value of exports of our investments. on a limit so that we could extract as much volume as possible for the MRE, and Takamori can be more precise. But this is related to increase in hydroelectric generation, which is shared by all agents that take part in an MRE. And so, if you want to complement, And the question, what exactly do you want to know more, the form? So the dynamics, how does it work and how this is defined? And expectations too, whether this is going to continue, whether this is going to be perennial. Well, we are trying to make exports more perennial. Today, we have surplus of energy in Brazil. And we also have energy needs in other countries in Latin America. So we can supply energy at more competitive prices than, for example, they can have in Argentina or Uruguay. And this might even facilitate energy integration in a continent with gas transmission from Argentina to Chile and a regional agreement. So we are trying to do that, and we do not manage to do that in terms of having a regional agreement. We are going to buy a contract in terms that today are used in Argentina. They have contracts with gas. They have good gas generation capacity, and we should... should not consider that we may disarrange the market in our neighbor country. So we are thinking in terms of exporting to Argentina after, again, it's exported to Chile, thereby making the integration happen. This is what we want when we think of sustainability. And there is a question mark here, and Takamori, maybe you could address that. Regarding the effective need, considering we have a surplus and the contracting of capacity. Well, I don't have much to add to what Satamini already said to relate this to the long-term and supply. From the operational aspect, it's kind of simple generating agents in Brazil. They declare the availability to export with the existence of energy that can be offered the day after. The operator compiles everything, identifies the needs of neighboring countries, and they will accept or not. NCC would also define minimal prices to define the amount to be exported. So this is a negotiation process that is simple, efficient. and has been a major advancement compared to what we had in the past. In the past, we could only dispatch thermal power, and now we can also export hydro energy, providing income to MRE agents to the energy reallocation market. and there is room for improvement because this is the end of the rain season. We think that the energy will no longer exist very shortly for this season, but our reservoirs are at very good levels, which makes it possible for us to advance economically and part of the reservoir in a more efficient way. And this complements what Satamini has just said. Having a design that will make it possible not just to use intelligently the hydropower, but also to use the excess from our existing reservoirs. We have room for improvement, but the government has been very fortunate in the design. Thank you, Takamori and Satamini. Let's move to the next question from Rafael Nagano, Southside of Credit Suisse. So two questions. What are your expectations in terms of competition in the next auction for transmission that will take place in June? Is there a specific lot that is getting more attention? Yeah, expectations. Well, so the bidding expectations are always large. We know that major players are looking into it, looking into the auction. But the auction is quite reasonable in terms of total volume of investments. And depending on how prices are positioned, we might have a slightly more... an easier solution. We've seen players that are very aggressive and maybe based on assumptions that did not come true. So this is our perception. We are really confident that our team is working in the best way possible within the levels of responsibility and the mandates that we have. We do not have the excessive discipline that might affect our competitiveness. We're always looking into that. We reinforced our team. our development support team in the last few months so that we could have considered a bigger number of lots and to be sure that we did the appropriate technical work to provide the best engineering solutions, the best layout, best negotiations with suppliers and service providers, so that we are very well prepared for the auction in the end of June. Unfortunately, I cannot tell you specifically which lots we are interested in, and we'll try and find a reasonable volume of investments so that we could continue our strategy of increasing and diversifying the portfolio of Engie Brazil Energia. As we affirmed in 2016, we want to diversify close to our core, and today it really makes sense. that we clearly perceive, not just us, we had that in the past when we made the decision, but the market can very clearly see that transmission is very important for energy because it makes it possible to bring energy and power close to where consumption is. So we hope that we will win a reasonable share of the auction that is going to take place in June. Thank you, Satamini. Next question from Rafael Nagano again. So what are our expectations for the implementation of generation projects? Well, Yes. Today we have three major projects, one in the final phase, close to operation, and two other portfolios. They are part of our sold energy portfolio. If you look, we have a major portfolio of sold energy that needs to be renewed. Periodically, today, we have 5.5 average gigawatts of energy that has been sold, and one giga is third-party energy, so we could recontract energy. The thing is price. We understand that price. cannot be for a long time below marginal costs of expansion. And we saw the closing of GE, factoring of wind turbines in Brazil. Siemens Gamesa has announced that they will close their wind turbine plant in June this year. So this situation of surplus that was caused by many market distortions, so the capacity was taken out from the free market to the auto production, they distorted the market, but they ended up being harmful. It's only healthy if it's healthy for everyone. and also the value chain in the system. So we need to pursue balance. This is part of our agenda. And we're going to have good surprises because the government can see this need. Our next question comes from Arlene D'Souza from the Southside. Come to see investments. Good morning. Congratulations on your performance. Could you explain for tax performance above expected in the last quarter? Does the company expect to keep these levels with tax in the short and medium term? Well, there have been important factors. TAG had a buyout leverage, so it has a debt. The debt is gradually paid. And this is related to inflation rates. And we're making the necessary adjustments And after the two years of operation with Transpetrol, there was a phasing out with a level of efficiency and quality. And the results that we see are the results that should stay and be sustainable in the longer term. So we were expecting this was included in our business plan slightly better than expected because of the management opportunities. Thank you, Satamini. Now I have a question from Yuri Gula by side from Trilia Investimentos. He says that over the past few days, the discussion on the calculation of spot price has become more intense. Do you have a vision? Can you update your vision on that? Yes, our vision is that the calculation of spot prices can be questioned and reviewed but it needs to have a fundamental element, which is the sustainability of the country's businesses. So there is a very low price that doesn't cover all the elements that are necessary to bear the costs. of an operation, this will end up leading to losses and making the system weaker as a whole. So we defend that we should think about it, but it's a reflection that tries to find price levels that will keep sustainability of generation in the country. So this has been our position. and the questioning about using or not. Itaipu cost, this is pertinent, but the formula that will remain is something that should be sustainable in the long term. If we work today with surplus lasting for a long time, so there is a major likelihood the prices will stay at the floor of the spot price, and this should be sufficient for the power plant to do the necessary maintenance so that the turbines can generate an appropriate level of energy. This is what we defend, and I think that the decision should go in that end. Takamori, you've been working on that front. Would you like to say something? Yes, I would like to complement it briefly, Satyamini. It's a very good question. And as to the merit of spot price, and Satamini said that this discussion started this year because of an opportunistic action of an agent at a legal level. And we think that this is a very bad strategy. There's always room for improvement, but improvement needs to take place at regulatory, administrative levels with all the... stakeholders, and at the opportune time, everyone involved should position in a timely and suitable fashion. So we think that the way it started was not good, but we're sure that the regulation agency is aware of the of the theme and will address this with sensibility and serenity. And this will be addressed at the appropriate field, at Anil's field. Thank you very much, Satamine and Takamori. Our next question is from Marcelo, a cell-side analyst from Itaú. Could you talk about regulatory discussions about the potential compensation of hydropower plants? In which stage are the conversations? Could you say something? He has a second question. Well, since we are in the field of regulation, Well, Takamori is migrating from there to here. Takamori can answer. But it really falls short from what we would like it to be. Yes, exactly. We all know that ancillary services are provided at a plus cost by a nil. And this does not make it possible for agents to coordinate in the best way possible. So whenever possible, market conditions should be correctly priced. So this issue of ancillary services has gained strength more recently, and the regulation agency has opened some spaces for discussions that are some public hearings that are open. keeping some level of ancillary services, but this is a good time for us to discuss the repricing of these services. So the regulation agency is paying attention to that and there is room to improve it. So, we are at an intermediate point, but this is the right timing for us to discuss the theme. So, another question about the capacity auction. Do you think hydro will compete with thermal, or are they going to be different products? Can I answer this question to Satamini? Yes, please feel free. The floor is yours. Marcelo, Angie, is for competition because we believe that the best agents will do better. So within this context, we believe that in addition to competition and efficiency, whenever there are niches and subproducts, This limits competition and limits the market in terms of providing the best services. So we prefer to have an auction that is more agnostic in terms of source and type of energy. It might be difficult to implement, but this is what we are after. We see no problem in having a competition between hydro and thermal. And what needs to be very well defined is which is the product, which resource is more scarce. And based on that and on mission, all agents and even other sources and other stakeholders may find combinations and solutions that are smart and efficient to address the problems to be solved. Just complementing, We want to avoid that inappropriate decisions for the allocation of resources are made. So allocation should be the most efficient possible in terms of providing what the system needs at the lowest cost possible. So that's why we say it's useless to try and offer offshore wind right now through a specific option because this is going to cause distortions and inefficiencies. So we should rather use the existing resources to provide what you have. So the best resource is the one that should be made available. So this is the message that we believe in, that we're giving to the market, and we want to have a healthier economy. industry in that regard. Thank you very much, Sataminia Takamori. Now shifting gears slightly from regulation to sales, we have a question from Daniel Travinsky, sell-side analyst. So could you talk about the energy sale dynamics and how we are positioning in a price-dropping environment? And how do we integrate our sales strategies with investments in renewable energy? Well, our strategy has been for a long time to be very well contracted, and you can see this very well in our energy balance. Obviously, when we have lower prices, our appetite for sale goes down. Now, we can never stop completely selling because we have customers. Sometimes we are slightly more selective. We have a low cost of regretting not selling if prices are very low. Well, I didn't sell and prices might drop even further. But they are not going to drop much because they are already very low. So, all of this is considered once we define our sales strategy. And this dynamics is discussed in our energy forum that meets every two weeks where we analyze price movements, commercial movements. And we make the decisions. And we are monitoring all the decisions of our customers. So we cannot stop selling, but we can sell in a more selective fashion for the customers that we think have the greatest potential of staying with us in our portfolio. Thank you. Thank you, Satamini. Now, our final question, both from Daniel from Safra and Joanna from Studio. They want an update on the transfer of Giral, considering what Joanna said, considering the recent equalization. We've been talking about that, but this movement... needs to be made by the controller whenever they think they should. So we have certainly been talking about this since the third quarter of last year with the review of Jirao transmission fees. The asset is the cash generator, and in this manner, the pressure of allocation from shareholders. So it's better for controllers to have a cash generating asset into the company. But this movement needs to be made whenever they find it appropriate. Today, we are in the process of investing major amounts in new capacity. We think that maybe bringing the asset, which should be combined with a financial solution, and all of this is being taken into account by the controller. We, as directors and managers of Engie Brasil Energia, are not part in this discussion until it's brought to the board of directors. This is part of our governance. That's why I do not have an accurate answer to give you. We are not taking part in this discussion, and we try to keep our impartiality. in a discussion of a transaction between related parties. Thank you very much. In this manner, we end our questions and answers session. Satamine, Malta, and Takamoto, the floor is yours for your closing remarks. In whichever order. Malta, Taka, and then I'll close. Malta, you're muted. So once again, thank you very much for the trajectory along these four years. The interactions are always very positive. And as I said, and as you could see, Taka knows a lot about the market and regulation, considering this scenario in terms of supply. He might be the most suitable person to manage those matters. And I wish you all a good afternoon and a nice weekend. On my end, I can only thank you for your trust. I'm very happy with the challenge. I'm honored with the opportunity, and I am sure we will be able to build and keep contact and transparency with the market. Let's move on. I'll meet you next call. And so I would also like to thank Malta to welcome Takamori and to tell the market that we are always very well served by very good professionals at Engie and we prepare all successions so that we always have this dynamism in our company. We tirelessly pursue improvement and as we had with Malta, and here again, things are always to get better, and you're going to see this a long time. We need to keep the dynamic feature of Engie Brazil Energia. This is what differentiates us as one of the top players in the market. Once again, thank you very much, and have a nice weekend.