Equatorial Energia S/Adr

Good afternoon and thank you for holding. Welcome to the Equatorial Energia SA conference call to release results for the fourth quarter 2022. With us today we have Augusto Miranda, CEO, Leonardo Lucas, CFO, Cristiano Logrado, regulation director, Tatiana Vasquez, IR superintendent, and Tin Amado, CEO of Ecoenergia. This event is being recorded, and all participants will be in listen-only mode during the company presentation. Ensuing this, we will go on to the question and answer session when further instructions will be provided. Should any of you require assistance during the call, please press star zero to reach the operator. This event is being broadcast simultaneously through internet via webcast and can be accessed at the address www.equatorialenergia.com.br where you will find the respective presentation. You can flip through the slides at your own conclusion. The replay of the event will be available soon after the closing. Now, participants of the webcast can register through website questions for Equatorial Energia. Before proceeding, please bear in mind that the forward-looking statements made during this conference call referring to the business prospects of Equatorial Energia Operational and financial goals are based on the beliefs and assumptions of the company management as well as the information currently available. Now, these forward-looking statements are no guarantees of performance as they involve risks, uncertainties, and premises as they refer to future events and therefore depend on circumstances that may or may not occur. investors and analysts should understand that overall conditions, sectoral conditions, and other operational factors could lead to results that differ materially from those forward-looking statements. I would like to give the floor to Augusto Miranda, who will begin the presentation. You may proceed, sir. A good afternoon to all of you and thank you for joining us. This afternoon, we're going to present the results for the fourth quarter 2022. We ended the year advancing in our operational efficiency agenda and ESG. This was a very important year for our trajectory. We opened up new avenues, especially in terms of energy. And we also worked in ESD and sanitation. In this quarter, we made strides in our role as a consolidated in the distribution of energy. We expanded the activities of the company to the center west, adding a few additional companies. In our operations, we continue to focus on quality of our commercial performance and, of course, the recovery index so that we can ensure the turnaround process of our assets The results that we are sharing will show you the advance that we have made. In 2022, we also had significant strides in the ESG agenda. we have been able to advance in terms of the decarbonization of our operation. We trained the first team of electricians in Pará. At the same time, we're also teaching this course to management and to those who work in the company. And finally, we have strengthened our governance, especially with the transformation of our audit commitment We will now move on to the slides so we can speak about the highlights. Now, in this quarter, we have the advance of distributed energy that had a growth of 5% compared to the same quarter in 21, reaching 9.141 gigawatts hour. To continue speaking about distribution, we have a significant reduction of DEC, Vis-a-vis the third quarter, 22. Once again, the reductions were between 5.2% to 15.5%. In the generation segment, we attained a volume of 1.359 gigawatts hour, an amount 4% higher than in 2021, benefiting from the increase in installed capacity and offsetting the lower availability that we had. In terms of our economic and financial highlights, we ended the quarter with a consolidated EBITDA of 2.3 billion reais, 33% higher, thanks to the performance of the distribution segment and the consolidation of the new assets. In the value generation agenda, We concluded the closing of CELDD on December 22nd. We also issued debentures in the amount of $7 billion, thus lengthening our debt in a very challenging scenario. In March, we concluded the issuance of debentures thus contributing to a reduction of leverage and enhancing our liquidity. I would like to give the floor to Leo so that we can begin with the consolidated vision of our economic and financial performance. Well, thank you, Augusto. Very quickly, we're going to speak once again about our economic and financial performance through a consolidated vision. We have taken away the effects of VNR and ISRS, the gross margin grew approximately 26%. And this growth is linked to the good performance of the distribution segment that had the thrust of the significant growth in the market and a strong reduction in losses. Another highlight is the contribution of the renewable sector. That was not part of our portfolio previously. If we consider the new assets, Ecoenergia and CSA, we had a growth of approximately 5% year on year. Now, in terms of adjusted OPEX, we had a growth of only 3.8% in the annual comparison. If we disregard the asset CSA, And of course, this was not accounted at that time. The growth shows the focus that we had in our cost discipline, especially if we keep in mind the present day scenario. These are initiatives that are justified because they allow for an improvement of quality. And the highlight is for the segment of distribution where the PMSO remains stable, growing only 0.4%. And of course, we have the sale of other assets. At the lower part of the slide, we have a comparison of our adjusted and consolidated EBITDA for the quarter. We had an advance of $2.2 billion in the fourth quarter, a growth of 50% with a very strong effect due to the distribution and, of course, because of the new assets amounting to $2.4 million. On slide number six. We show you the information on investments and the schedule for the tariff reviews that are planned ahead of us. The total volume increased 70% vis-a-vis the same quarter the previous year. Now, in a consolidated way, the company grew by 5.3 million highs throughout the quarter. With a concentration in the distribution sector where we invested $5.1 million, we focused on strengthening the network, improving quality. Now, the investments for the year are considered to be higher than the recurrent investment. This is because of the delay of investments during the pandemic and the tariff processes that we had in 2022. We have also consolidated new assets that are in the process of being consolidated. We show you a list of the tariff review processes for this year. We have four tariff processes, and we will also have the review for Equatorial Alagoas extending almost into 2024. These are extraordinary tariff reviews. similar to some of the processes that we had success with in PIAWI and others. And in another three years, we will undergo another tariff review. Now, the regulatory walk was approved representing 11.25% before taxes. And this poses the great opportunity to enhance our consolidated base. We represent almost $19 million in terms of our net asset base. On slide number seven, we share with you the debt information for the company. We are working with a pro forma before the effect of the acquisition of CELTD with a leverage of 3.8. And of course, the acquisition and consolidation of that asset. We have $7 billion debt because of CELTD. And you will see this in our statements for this quarter. Now we also have 1.5 billion and we have added to our calculation, the EBITDA of celt with a strong impact that will not be recurring as you can see in the bottom part of the slide. Now, although this asset has contributed to preserving our net debt, it will help us quickly with a reduction of leveraging, perhaps because of the tariff review and because of the recognition of new asset base. There will also be a growth in the market and we will be moving away from these non-recurring events. We would like to remind you that we have had excellent effects in terms of collection reaching 100%. And we have an additional cash generation with an impact on EBITDA. In March of 2022, we announced an investment agreement where the issuance of preferential shares also includes equatorial PLE. And this, once again, will help us to reduce our leverage. And if this impact of deleveraging had happened last year, it would be 2.8 times instead of 3.8 times. Now, we raised 2.1 million to adjust our capital structure as a subsequent event. It's important to mention that at the end of January, we had the issuance of debentures to the amount of 7 billion. in a very challenging market context. Now, this issuance was used to almost wholly pay out our obligations of CELT for payment until the end of 2023. So this operation of liabilities has helped us to balance out the company and we have improved our debt profile with this operation. We ended the quarter with 15.2%. If we adjust this by the liability management carried out in January, the cash over debt would have been 3.9 times if we consider the liquidity situation given to us by what we did in March. We're now going to go on to slide number nine to show you a very general overview of the distribution segment. As you can observe in the slide, distributed energy had a growth of 4.9% in the fourth quarter, and injected energy had a lower growth of 2.3%. Now, this result reflects the advance of our process to combat losses. In this quarter, this was accompanied by a collection index of 7.7 percent. Now the collection performance in this fourth quarter captures the positive impact of the reduction of the ICMS, eloquent and collection continues to be very high, especially if we consider the very challenging macroeconomic scenario. It is important to record that the consolidated level was positively impacted by the review process of our matrix and because of the adjustment and adjustment to present value of accounts receivable representing 58 million reais. Now, the negative effect is that we have accounts receivable for more than 10 years. Now, by showing it to you this way, we are able to process work. And in a challenging macroeconomic environment, we once again had a very significant collection with an expressive reduction of losses, growth below the inflation, and almost nil growth of 0.4%. This was allied to a growth in margin and an expansion in tariffs, and all of this resulted in a strong growth of 78% for the period. At the bottom of the slide, once again, we have a very overall vision of growth. the operational indicators vis-a-vis the previous quarter with a significant enhancement in all areas. This points to the operational excellence after the acquisition of one more asset. And of course, we will be consolidating CELD in the coming quarter. And all of this was done below the regulatory levels of FEC. The generalized improvement of our operational indicators reflects the results of the investments that we carried out. of 1.7 billion throughout the year. We now go on to the next slide, slide number 11. In slide number 11, we're going to very quickly see the performance of the transmission sector. The RAP is below 3 million for 2023. The regulatory EBITDA had a reduction of 4% standing at 297 million. Now, this variation is mainly due because of the adjustment in the fourth quarter and adjustment in the tariff processes. If we just consider this impact on EBITDA, it would have been lower. Now, in the next slide, We have a consolidated network of almost 92%. We now go on to slide number 13, where we're going to look at the results of Ecoenergia. We are bringing you the historic performance of Ecoenergia. 2022 was highly impacted, and there was a reduction in availability with a negative impact on generation. And as a comparison, we show you the generation of the year. with P90 and P50. This is a vision of the year 2022 proportional to the entry of this asset and a vision of previous years. Now, the results became regularized and are 100% operational. The good news is that in March, there was a negative impact on generation in the Northeast because of a higher volume of rainfall. We also observed the average wind speed. Now there was a growth of 0.3% in EBITDA buildup for ecoenergy between the fourth quarter 2022 and the fourth quarter 21. We would like to highlight that the average sales price had an increase of 3.5% vis-a-vis what was reported at the beginning of our commercialization strategy. We're looking for clients that will offer us greater benefits. We now move on to the next slide. We ended the quarter with... clients connected to our network, our sanitation network. This is a very important network and corresponds to 14% more after the first year of operation. We have completed only six months of concession. Regarding the operation of sewage and the beginning of invoicing of this service, continue on as a highlight, showing us very clearly the performance we have been able to achieve. Now, the coverage index of this service represents 41% for water and 7% for sewage. Especially in terms of number of clients, we have made great slides. And we're, of course, having a significant evolution, a growth of 39% vis-a-vis the third quarter, 22. Now we have disimbursed the BASA line. We remind you that this is very important and we are finding lines to fund this for the first year of concession. The term is for 26 years with a cost of IPCA. I would now like to return the floor to Mauro. Well, thank you. Before closing, I would like to refer to a new chapter of our history, the acquisition in December of CELG, which means we have had this for only three months. We have made great strides accelerating in the main fronts for this asset. As part of one of the main strides, I highlight the work for the tariff review, which is one of the main triggers to generate value. We're focused on guaranteeing a better recognition at the end of the cycle. This will enable us to make the necessary investment for this area of concession. All of this is underway and we're working with negotiations programs for energy efficiency, enhancing our relationship significantly with the community. Now we have been creating regional superintendency that enable us to work more closely and bring us closer to our customers. Another important point is the liability management that we carried out in January. We restructured the debt in December with 7 billion from the old controller. And the maturity of these was of 12 months. In January, we used the resources of the dimension representing 7 billion reais with maturity at the end of this year. 6.5 billion reais have been used for the payment of this base and we're honoring the debts of the company. Now, one of the great benefits we have from this concession is the quality, and we have a commitment with the community. We're extremely enthusiastic with the opportunities that are arising from CELG with more than 3 million customers. We go on to slide number 18 now. Very recently, we had an expressive growth in the group. We expanded our business portfolio. We have started to go on new growth avenues. We have had transformational growth avenues. especially in distribution that is our core business where we acquire new companies we are expanding our presence geographically and we have access to more than three million customers all of this will generate a great deal of return for the investors Now, in this context, there is the possibility to extract even more value, and we clearly foresee opportunities and inorganic growth in the coming years, as we have always done. Now, all of this has been supported by a significant governance structure at the company. In 2021, we created the Committee of Strategy for a New Business. And we put together an operational committee working with sustainability and governance. Now, we carry out audits and risk management. This is something that is part of our bylaws. And we have people that have broad experience in this segment. Now to strengthen our management, we created regional superintendencies in 2021 and the vice presidency of distribution to beat up integration of businesses and to comply with our strategy. Now to strengthen the governance, the management, has included an additional seat in the board with the inclusion of a member Eduardo Parente that has broad experience in the field. We will also create two new advisory committees, the Regulation and Innovation Committee and an Operating Committee. to go more in depth for strategic points for our company. Now with these changes, the company therefore will have five advisory committees. Additionally to this, we have Carlos Chiani from our board of management, and he will have a role that is equivalent to the executive chairman, and the view is that he will offer support to the CEO. Now the capital structure, new business strategy and talent development, all of this supporting the CEO in a variety of topics that arise from the different areas. We believe that with these changes, we will strengthen to be able to fly even further and have organic and inorganic addition of . We now go on to slide number 19 for our final comments. I would like to refer to the outlook for 2023. Well, of course, all of this focuses on acquisitions, the closing of the ELT in December. This is the greatest acquisition of our history and generation, bringing in more than 3 million customers. I also highlight the significant improvement in quality indicators. Now, we wanted a consistent reduction in some of our indicators. Now, with our new capital structure, we have reduced the leverage and have done this in the first quarter of 2023. We have reduced leverage to support the strategy of the group. 2023 will be a year with a large variety of tariff review processes. In the past these have contributed significantly to a reduction of leverage. We know that the The macroeconomic scenario requires caution, but we also are working in a transformational way, and that's why we are strengthening our portfolio. I would like to return the floor to the operator so we can go on to the Q&A session. Thank you. We will now begin the question and answer session. Should you have a question? Please press star 1. If at any point your question has been responded, press star 2 to withdraw from the queue. Questions will be answered in the order in which they are received. Please pick up your phone when posing a question to allow for optimal sound quality. Please hold while we pool for questions. Our first question is from Marcelo Sa from Itaú Bank. Thank you for the call.

Now, regarding the regulatory part, you seem to be very optimistic.

Do you think that these tariff reviews will continue on in 2023 and which will be the most important one. I imagine that you're analyzing this as the company leverage is under somewhat more pressure. What are you planning to do? Will this be a follow-on or will you make alterations in your balance or perhaps more creative financial exercises. Thank you. Thank you very much. Well, regarding the operational flow, we have Cristiano, who works in the regulatory part now Last week or two weeks ago, Annelle concluded the second stage of this tariff review and should continue on. Now the final review will be in August. And we believe that they're going to apply a more expanded methodology. Now, please speak about the second part of the questions, Leonardo Lucas. We normally don't speak about assets. We do this only privately. But we would like to highlight that distribution is our core business. This is the segment where we tend to analyze all of the new operations that come about, always attempting to detect opportunities that will be compatible with the use of our capital. Now we look upon this so that we can of course add value in each of the deals that we carry out. Thank you. Our next question is from Andres Sampaio from Santander Bank. Hey, good afternoon. I have two questions. I would like to speak to the beginning of projects for the renewable energy, your CAPEX, if you can already convey something to us. And the second question, refers to the discussion on the renewal of concessions. If you could remark on the timing and what is happening with the public concessions and how you're going to begin those discussions, that would be very important. Thank you. Well, to make this meeting have a more dynamic dialogue, we have Tin with us here from . Perhaps he could refer to this question. Hello, and thank you for the question. Referring to the pipeline that we disclosed, we spoke about two new complexes, Banheidas and Ibego-Gonzalves. We don't get guidance in terms of QPEX, what I can say vis-à-vis what we foresaw in the past. We have a slowdown, a significant slowdown in the cost of plates, better than we had forecast during the acquisition of PECO Energia, and the rest has been impacted, of course. But the news as a whole are positive from the viewpoint of CAPEX vis-à-vis what we had projected. There's also a question regarding the contracts that We have seen that our product, which is our flagship and that will guarantee savings, is running at better prices than we had estimated. So we're now beginning to scale this up. We have several digitization projects. The enhancement of commercial processes to be able to scale this up. to have fully contracted energy. This is a good product. The client has liked it. It's a very simple process. The process is highly digitized to allow us speed. And of course, the price is much better than we had foreseen during the acquisition of this asset. Well, thank you. Cristiana, please. Now, the extension of concessions since the end of the year, we're awaiting a position of the government regarding this issue. But recently, Minister Silveira, in one of his speeches, broached this subject and reinforced the fact that this will be an extension for concessions in the field of distribution. There will be the opening of a public hearing, possibly in the second semester, and they will approach this topic once again. We're awaiting this, and we continue to discuss this along with Abrate. Thank you. Thank you. Please hold while we pull for new questions. Our next question comes from the webcast from Antonio Junqueira from Citi. Good afternoon. What will happen with the competition environment for sanitation and the transmission sector this year and in 2024? Thank you very much for the question that transmission auction, and we're speaking of three stages and 50 million reais for the auction. This will bring about new opportunities. And of course, will enhance labor and the part of materials. And we think that this auction could represent an opportunity in both of these fields. And of course, what we're seeking in these auctions are low prices. And in terms of sanitation, simply to reinforce the auctions. These are very large, much more that we can let go by or ignore. Now, another interesting aspect is that this will entail contracts, it will entail the environmental part going forward. These are very important aspects that we have to consider in transmission auctions. We don't want to make mistakes, of course. And in fact, this is going to be a very large auction. It makes no sense to ignore it. Regarding sanitation issues. We have to wait to see what is going to happen. We're at the beginning of a new government. We are hearing discourses of several new constructions. I think we have to wait to better understand the changes to understand what will happen going forward. It's what we have always said. There's a volume of investments that have to be made to comply with that idea of universal services for everybody. Now, in terms of short-term visibility, we believe we need to wait some more time and see which are the opportunities that arise next. Well, that issue of the laboratory of testing things and then become part of the segment carry out tests. And well, we're already part of the segment. The segment requires $700 million. to be able to offer universal services. Many people are left without energy and sanitation services. However, the rules have to become more clear before we can truly be willing to enter this sector more broadly. Thank you. Our next question also comes from the webcast from from JP Morgan. Good afternoon to everybody. The company has announced the construction of 600 megawatts of solar energy, which is the capex and the justification for the construction of this once the prices are extremely low. Thank you. I'm going to answer here, if you allow me. Regarding the CAPEX, we have already referred to that with André. We don't offer guidance. We receive positive news in terms of CAPEX, especially in terms of the panels. Now, regarding the market price, I would like to remark the following. The product that we're using to trace CAPEX is completely different When we acquired Ecoenergia, we mentioned we would look for shorter-term contracts at lower prices, market prices, and this is precisely what we're doing. This is what has offered us good results, better results than those of the market and better results than we expected when we acquired Ecoenergia. Why? Because consumers prefer to have a simple product. We have an educational tariff instead of having that complexity of having to contract energy from a market. So this price is lower than the market price vis-a-vis the free contracting market or the wholesale market. Well, thank you. Our next question also comes from the webcast from Antonio Ruinqueira from City. After some time, what is your view on the sanitation business? Will it generate a good return on capital? Would you share with us your perception up to this moment? Thank you. Junqueira, as I mentioned, this asset, since it has been very, very positive, it has a small platform, and Equatorial didn't want to deal with a very large company. This has added something positive to the company. And we have Marcelo, who has a great deal of experience. We have some figures to enhance some units in terms of water provision. Now, the operation is being done upstream at present. So we're merely beginning the operation. I remind you that last year, this was an incipient process. And I remind you that once the market has fully carried out its laboratory tests, this company is going to allow us to feel extremely satisfied. Well, thank you. Please hold while we pool for more questions. Should you wish to post your question over the phone, please press star one or send your question through the webcast. Please hold while we pull for questions. Well, thank you for holding. Our next question is from Marcelo Sa from Itaú Bank. Regarding the growth of volume in distribution, it seems that you have been doing better than the other companies in the sector throughout 2022. Which is your expectation for this year? Thank you. Marcelo, thank you for the question. As we showed you in the results, we observed these regions and, well, there is a trend for growth in 2024. Alongside that, I would like to highlight some operational data that once again shows you that growing trend in all of our concessions. Now, a reduction of expenses and the growth, of course, represent a very good mix. When we compare ourselves to our companies in 2020, they are above all of the regions, and this is because of our expenses. And last year, we had the greatest loss reduction in the sector. And we have set up a combat team against losses. So we begin the year fully equipped and this is very important for our results. This is what we observe in the first months of the year. Another interesting point, the number of losses in an annual measurement have had an interesting evolution. We're, of course, adjusting our invoicing processes and we won't have to pay for this bill looking forward. We should already observe a more enhanced performance. There has been interesting growth and we continue to have that opportunity to cut losses and we continue to deliver this opportunity. This is our expectation, therefore, that we will have stronger growth in energy distribution. I was at sea this week, I just returned today. I went there to have a look for myself in terms of the lawsuit. This perhaps due to the fact that the former company did not have the capacity to invest. And clients were begging the company to resolve the problem. So I went there as an experience for five days. And we see that the clients had several requests that were ignored by the previous owner. You had clients with connections that were not legal and I have returned very hopeful from this concession at present. And we're beginning the year with a team that has been completely set up differently from last year. We are working on the training of people, as we mentioned at the beginning. We're working with contracts. All of this has been aligned. So, of course, I'm referring to the region of Boyaz, where we had to work with a great deal of works. We're negotiating terms. We're debating this. We're doing this in a very masterful way. And we're... We were concerned, and we now have a well-prepared company, and because of this, we're quite optimistic, and we are going to enhance what we do in the region of Goyas. Thank you. Our next question comes from Ricardo from Canal Capital. Excellent figures and congratulations to the Equatorial Management. Regarding the M&A process, what is happening with the acquisition of light? Thank you. Marcelo, we truly... don't like to specifically mention an asset, so I will not be able to respond to this. As Leo said, there is some opportunities of distribution that would be very convenient. Well, thank you. Our next question also comes from the webcast from Ricardo from Cano Capital. Excellent figures and congratulations to the Equatorial Management. Regarding the M&A plans, what is happening with the acquisition of light? This is a question that is being repeated at the moment. I have been at Equatorial since 2004 when I took office. And the challenges that we face, if you look at 2018, we are two completely different companies. This is a good moment to truly thank the Equatorial team. When we look at Piauí, this is a company with less than three years. Alagoas and Rio Grande do Sul were there. Three months ago we entered Goiás and the process is extremely clear. So you can see that this is truly teamwork, the work of people. There are people that do not hold back their efforts, roll up their sleeves and truly work. If you look at what we had in 2018, we had 10,000 employees, now with the new people that have come into the market, we see that the people are growing. And this is what allows us to dream, to dream that we will continue growing organically and in a rational way, but with quality. Thank you very much for your message. Well, thank you. Once again, should you wish to pose a question, please press star one. If you're in the webcast, you can send your question online. Please hold while we pull for more questions. Our next question comes from Andres Sampaio from Santander Bank. Good afternoon, everybody. Simply to compliment on the projects, the coming into operation works if you have planned anything. Well, thank you, Andrea, for the question. Normally, we don't give guidance in terms of this operation. We do have a window that we have explained in the release. And the construction, of course, will be very similar to previous construction. And otherwise, we do not offer guidance in terms of the COD, the coming into operation. Thank you. Thank you very much.

Please hold while we pull for new questions.

Our next question comes from Marcellosa from Itaú Bank. I have a question regarding one of the points of the EBITDA and the relevant provisions that you carried out in the quarter. You stated that this was a non-recurring item. Are we going to see something similar during this first half of the year or is it something specific to the fourth quarter? This is Leo speaking. Thank you, Marcelo. Traditionally, in the fourth quarter, we have the update of our matrix. And we update our performance in the new series of the year. And while this effect normally happens in the fourth quarter, We had an effect of 119 million in terms of this reorganization of our matrix in the fourth quarter. And this reorganization of the matrix updated accounts payable, accounts receivables. Part of this is received in the fourth quarter, part of this further on. We don't work with a separation, but traditionally this happens in the fourth quarter. These are two different effects that do not happen during the year. And this was an adjustment to present value with a variation of 51 million reais. Now this... accounts receivable adjustment to present value was due to the provision for bad debts also for the fourth quarter. We continued with the collection of older debts and we have launched an adjustment for losses for the last 10 years. Now, whatever has extended for 10 years, we're writing down as a loss. 41 million reais, I believe, because of the introduction of this new criteria. These are the effects that we have because of our provision for bad debts. 100% of collection for the year, basically. And this thanks to our collection and commercial teams that have been working very intensely and very broadly, making it possible to have this significant result in terms of collection. Now we have been working with this provision matrix for several years without being concerned with a quarter and the quality of our provisions for each of the accounts receivable. So this is something recurrent that takes place every four quarters, and that refers to accounts receivables from previous years. As there is a separation between what is recurrent and is not recurrent, we end up highlighting this We don't treat as non-recurrent a part that is recurrent. And we have shared this in the release. We have the adjustment to present value and the introduction of this criteria for losses, which is something new. Very good. Thank you. Thank you for the answer. Ladies and gentlemen, at this point, we would like to conclude our question and answer session. We return the floor to Mr. Augusto Miranda for the closing remarks. You may proceed, sir. Thank you all for your attention, for your attendance at our call. Once again, I would like to reinforce our commitment with our agenda and what we seek for our investors is to deliver consistent results, always focused on the highly disciplined financial management Our team is available to support you should you have any questions after the call. Once again, thank you for your interest in the company and have a very good afternoon. Thank you once again. The Ecuador Energy SA conference call ends here. We would like to thank all of you for your attendance. Have a good afternoon.