Tecnicas Reunidas Sa Ord

Hi, hello, everyone. Let's make sure we stay within our 20 minutes. The last ones, they were a bit longer. So in today's presentation, you have in front of you what you will be talking about. Eduardo, myself, will be driving you through a summary of our results of the first quarter, which is important thing of this 2023. I'm going to be starting with the race and rights issue. that have just been successfully closed. And then I'd like to go over the financial rationale and the key messages in our equity story that we have shared with many investors and analysts. And some of you were there. Next, Eduardo will move on to update you on our commercial activity and give you some color on the recent awards achieved in 2023. And right after that, I will go in more detail with the financial, not he will go in more detail, Eduardo will go in more detail with the financial figures of the quarter. And I will finish with a presentation of our guidance, and it's going to be the guidance for 2023. So let me start with the right issue. As you all know, Hopefully, you know, we have disclosed the $150 million capital increase that was announced to you right after Easter. First, I have to thank all our current shareholders, old shareholders and new ones, for placing the trust in the present and also the future of Técnica Unidas. I'm very much convinced that we will achieve the results that all of you expect and deserve. Let me go through the rationale behind the transaction. You know, as we wanted to get ready for all the major opportunities that lie ahead of us, the opportunity that the market is lying ahead of us. So we needed to get our equity up to the level that would give financial comfort to our main customers. And this is very important. We wanted to give comfort to our customers. We needed to be ready. With a 150 million euro raise, We are today at the equity level of 400 million euros, which is slightly above the average level of the period 2016-2019, which was the pre-COVID period, which is a period we were able to reach record level of awards from our very top customers. So that was the purpose, $150 million. Now let's go over the rationale of the rights issue. The sector, why the sector, and why technical remittance. I think it is very important to briefly summarize in this slide, again, our value proposition that was presented to investors. We do believe, we convince, the sector is in a special attractive situation. Both from the demand side, we're facing the largest investment wave you will have ever seen. And second, from the supply side, the sector, and we're very much convinced, is constrained by the scarcity of experienced engineering resources, scarcity on capacity. In this scenario, Tecnica Ronidas can take full advantage of these engineering credentials with our top clients and reached now a new level of profitable growth. We have the resources as we kept intact our core engineering during the crisis. And we are already taking the clients, talking with our clients about a pipeline of very well-defined projects that is larger than ever. We're talking to them on a very big and very well-defined pipeline. This is important to underline that. This includes both our traditional products with our clients, but also it starts to include the large new opportunities that arise from decarbonization needs. Needs that come from our existing customers and also from clients in new sectors such as steel and cement. I do believe, and we all believe, that it's a unique opportunity to grow, but we want to make sure that we grow profitably and safely. It has to be a healthy growth. With this goal in mind, the company is focusing its efforts into risking its backlog through different strategies that we have presented through the different roadshows we've done, and on launching different waves of efficiency programs to optimize our costs on operations. This is just a brief summary, and in a nutshell, this is a roadmap for the future of TR. And now let me give the floor to Eduardo.

Okay, thank you, Juan. Let me give you now some color about the project we have announced the first month of 2023, and also about the size and shape of our bidding pipeline for the next two years. In our last year end results presentation in February, we announced that TR was awarded a major LNG project in Europe, but we were not allowed at that time to disclose neither the client nor the terms of the contract. Well, now we can share with you that this announcement refers to the Hanseatic Energy Hub Reclassification Terminal that is being developed in Hamburg. It is an import terminal that will contribute to secure Germany's supply of LNG and green gases. The design and construction of this terminal will be developed by a JV led by Técnicas Reunidas that also includes the Spanish construction company FCC and the TACIS Enthroid. Within this JV, Técnicas Reunidas will design the regasification terminal and the two storage tanks. and will undertake all the equipment and material supplied for the project. The new terminal will involve a total investment of close to €1 billion, of which approximately €500 million will correspond to the scope of Técnicas Reunidas. Let me highlight, and it's important for me, that following our risk mitigation strategy, this is an award at the risk profile since the construction and assembly activities will be conducted by the other members of the consortium, FCC and Entred. We have also two important awards in low-carbon technologies. The first one, on the 25th of April, CEPSA and Técnicas jointly announced that TR will develop CEPSA's second-generation bioforest plant in Huelva, the largest project of this kind in Southern Europe. The total investment of this project will amount to 1 billion euros. Tecnica Ronidas will develop the engineering and will also manage the procurement and the construction of the plant. I want to stress that this project is huge, but again, it has been de-risked. as it will be performed on a pure service basis. Then, although the volume of the contract in terms of sales for TR is not comparable to a lump sum EPC project, the project has a better and more secure profitability. The second award regarding low-carbon technologies was announced yesterday. In this case, Técnica Ronidas has been awarded a contract for the electrification of two Repsol industrial complexes, one in Sines, Portugal, and the other one in Tarragona, Spain. The work will reduce energy consumption and carbon emissions at these two large chemical facilities, where TR will replace ethylene and propylene turbines with electric motors. Tecnica Ronillas will develop the detailed engineering, the procurement management, and the supply of equipment and materials. We are very, very proud that Repsol has once again entrusted TR with the execution of a strategic and technically complex project. And again, we understand it is well-derisked since it is only a service contract. And the low-carbon segment keeps moving fast. And we are happy to announce today that TR has signed a contract with the green fertilizer company Atlas Agro to develop a zero-carbon nitrogen fertilizer plant in the USA. It is a feat that potentially could become an open-book contract for Técnicas Reunidas. Let me also highlight, and it's again important for us, that the plant will use Tecnica Zuniga's proprietary technology for the main process units. In fact, it will be the world's first full-scale zero-carbon nitrogen plant, using only air, water, and zero-carbon electricity as feedstock. And we believe these four awards are just the tip of the iceberg, as Técnica Ronidas currently is facing the largest pipeline of its history, around 70 billion euros. This number is calculated not in terms of worldwide projects to which TR could be eligible. We are talking here about 70 billion euros of projects to which TR has been or is expected to be invited to bid in the next 20 months. In the slide, you see that the pipeline is highly diversified by products. Almost 40 billion euros in petrochemicals, more than 20 billion euros in natural gas, and close to 10 billion in low-carbon technologies. Summing up, we are convinced that we are at the beginning of one of the greatest investment cycles in the history of our sector. Obviously, final investment decisions and bidding calendars are in the hands of our clients, but we are convinced that the whole sector will see a steady stream of major awards from the second half of 2023 and onwards. With our regained financial strength, we are convinced that Técnica Ronidas will be at the forefront, capturing a share of this investment in accordance with our engineering credentials with major clients. And now I'm moving to the financial section of the presentation. Our quarterly results should not be a surprise to many of you, as we included in our capital increase prospectus some general guidance about the level of revenues and profitability for the first quarter. In terms of sales, TIAA closed the quarter with more than 1.1 billion sales. As we have highlighted in recent quarters, the 1 billion level is a threshold that is key for the operating profitability of the company. The EBIT stood at 39 million euros, posting a 3.5% margin. The operating margin continues growing because of three reasons. First of all, the return to pre-pandemic sales levels. The second one, the underlying profitability of our backlog. And the third one, our continuous hard work in terms of cost efficiency. And the net cash. The net cash position at the end of March 2023 stood at 142 million euros, consolidating the positive evolution of the underlying cash generation in recent quarters. And of course, this figure has grown recently with the closing of the capital increase. But let me reiterate that in the current environment, we think that a wise use of the cash available is to incentivize our suppliers to accelerate the project as fast as possible. This will allow us to reach milestones on time and to deliver projects to complete satisfaction to our clients. And now I will hand over the floor to Juan for the guidance.

Obviously, what you have in front of you is not a very creative slide. It is definitely a very solid slide. But before talking about guidance, let me conclude again presentation restating my gratitude to our shareholders. The very successful close of the recent capital increase, we have never been accomplished without the support and trust of all of you on TR. Now, after securing the financial flank, which is important, has been very important, we should concentrate on the key levels of our business. We have to contract, and we are contracting, as you see, at the right terms. We have to execute, and we are executing at the lowest cost and the best managing of risk. Because we have to deliver projects, and we are already delivering projects to satisfy customers, satisfy clients, that I'm sure we'll want, as Evolve is done, repeat business with us. For the year 2023, we reiterate our guidance. Given our current backlog, we do believe we can achieve, we're comfortable to achieve 4 billion euros in sales and 4% EBIT margin. That doesn't mean we don't want to grow. For the mid future, we have the determination to grow, but to grow in a healthy manner. We have to have a healthy growth. And we are convinced we will grow in sales, and with the objective to have solid, stable, and consolidated margin. That is a very clear message here. And after this simple but very important message, I'll finish this presentation, and we'll all be very happy to answer any questions you may want to address or pose. Thank you very much.

Ladies and gentlemen, we will now begin our Q&A session. If you wish to ask a question, please dial star 11 on your telephone keypad and you will enter a queue. After you are announced, please ask your question. Once again, please dial star 11 on your telephone keypad. The first question comes from Mick Pickup from Barclays. Please go ahead.

Hello, everybody. It's Mick here. Thanks for the results and very nice, quick presentation. That was great. A couple of questions, if I may. So firstly, can you just talk about what I think is maybe mixed messages, and it's not mixed messages from you. You're talking about the beginning of one of the greatest investment cycles in the history of our industry. Fantastic phrase. But we're also hearing of your customers, your clients, looking at the cost of these projects, some projects being... I'm so sorry, sir.

For the interruption, this is the operator speaking. Could you get closer to the microphone, please? To have a better quality of your sound. Yes, thank you.

Hi, it's Mick here. Is that better?

Yes, much better. Please go right, please.

Okay. Hi, sorry. I'll start again. It's Mick here. I'm just wondering if you could just talk about mixed messages. Obviously, you're talking about the beginning of one of the greatest investment cycles, but we're seeing some of your clients push back on some of the pricing of contracts receiving, not for yourselves, but for others in the industry. So I'm just wondering if you can talk about your client's mindset about going ahead versus obviously an industry which should be seeing better pricing and has been inflationary for a period of time.

I mean, the reality is we are in this cycle. The reality is that customers are finding different ways of launching their investments, either with front-end design and conversion, early engagement, open bidding. Now we're seeing all different activities. And it is true that customers, at one point in time, now they're realizing that what we're saying already, there is scarcity of resources. So have to put together and rethink what is going to be the contracted strategy because it is true that they want to contract. So probably in the last, you know, weeks, I'm not going to say months, weeks, We have seen some confusion in one part of the market, you know, how those big investments are going to take place. Probably will be structure, restructure, split or continue the way they were. I don't want to say about, but renegotiate in a different way. But what I'm sure is that, you know, it is a need for the market and they're going to take place. The bad news is that it's been a bit of confusion, but the good news and that it is the willingness of the investors to go ahead with investment in one way or another. So they're going to go ahead. And that's exactly what we see today in the market. One way or another, they want to go ahead with a small investment here in Spain as well. We're talking to our customers and said, well, we still have an issue here or there, but we had to find a way to move forward. and we are negotiating ways to move forward. So my answer is, despite confusion with some delays or rearrangement of how those big investments may take place, there is a commitment of the market, of our customers, to go ahead with those investments. It can be some slippages because it has to be structured or restructured, but they're going to happen. I'm very comfortable that they're going to happen.

Okay, thank you. And secondly, just on your margin, obviously, nice to see you having confidence about 4% for the year. You've obviously started at 3.5%, which to my math says at some point you're going to be higher than 4%. Is that just a continuation progress on the normalization of the portfolio, and is that the sort of rate we could be thinking of as we exit the year?

I knew you were going to ask that question.

Be rude not to.

I knew, I knew, I knew. And I also knew it was going to be you. I don't know why. But the answer, we feel comfortable with the 4%. And obviously, we have to have an average 4% through the year. We do expect that as we progress in production, as we produce and deliver in the backlog, and we have to improve this 3.5%. of this quarter to get a year round average of 4%. But we cannot jump from two to four, from one to another, because that's not the way the business goes. But we do believe that we will be able to make it.

Okay. Thank you very much, and thanks for the results today.

Thanks, Mick. Thanks a lot.

Thank you. The next question comes from Kevin Roger from Kepler Chevrolet. Please go ahead.

Yes, good morning. Thanks for taking the question. I was just wondering if you can provide us a bit more color on the top line guidance because you start the year at 1.1. You say that clearly 1 billion quarterly revenue is at least something that is projected for the coming quarter. So you should be above €4 billion top line, if I'm not mistaken, and you are still guiding around €4 billion. So I was wondering if I'm missing something here in terms of top line forecast or if you are still being conservative. And also on the margin side, and maybe as a kind of follow-up, just what Mick said, so to be at 4% for the full year, it means that... Let's make a stupid calculation. At the end of the year, you should have a Q4 EBIT margin around the 4.5%, something like that. But your long-term guidance is still for around 4%, if I'm not making any mistakes here again. So how should we think about that? Is it the way that you want, again, to be conservative and at the end you will be closer to the 5%, something like that? It's just to try to reconcile, you know, What we could see in the coming quarters and the messages on the 1 billion quarterly run rate at least top line with what you are guiding for the full year and long term, please.

Kevin, this is Eduardo. Regarding if we are conservative, I think you have said, we are trying to be fair. We have the project in front of us, and we estimate how much revenues we can deliver in the year. If you have to be honest to you, probably we can be slightly above the 4 billion euros revenues. Probably makes sense. We are doing 1.1 now. But, you know, we are expecting some relevant awards by the end of the year or by the second half of the year, and they will have an impact. And I don't know how big this impact is going to be because not to have these awards now than in three months' time. So I have to be a bit, as you say, conservative. So have in mind that we will be slightly above €4 billion, but you will not see a big growth compared to these figures. and regarding the profitability or expected profitability for the future. First of all, we are coming from difficult times, and we all understand that. And we need to be, I don't want to say conservative, but we need to be realistic. We have learned from the past that sometimes difficulties arise from nowhere. So we need to be careful. We need to be careful. So I think the message of a 4%, It's solid. It's consistent. We can deliver it. It's not a major challenge. It's always a challenge, but it's not a major challenge. So let's use this 4% as the guidance for the future. It's a fact as well that if a huge wave of investment is to come in the next two, three years, we will see more opportunities to be more selective, to opt for those-based projects with smaller risks, and we will be in conditions to deliver better margins. But this is something that has to happen in the future with any projects to come. So for the time being, let's do what we are currently doing. Let's offer you numbers that we believe that are solid and consolidated. And 4 billion euros and 4% margin I think is correct.

Okay? Okay. Understood. Thanks for that. And maybe one quick follow-up here. You seem to be more and more involved on engineering, project management type of work instead of construction. Just yesterday, you announced the contract with Repsol for the electrification, saying that this is a lot of engineering hours, et cetera. Is there any kind of tools that you can provide us to estimate the contract value that can be attached to those engineering work? If it's just engineering, is it fair to assume that we can compare it to the typical margin that are made by some of your peers when it's pure engineering, meaning a double digit number?

Kevin, I think your question is, again, quite clear. From now on, we will try to provide a kind of a split between those contracts that are peer services and those that are sold under different structures. Because you're right, obviously, when you sell services, your margins are slightly higher, but not slightly higher, and are better protected. So this split is very useful for your understanding of of the potential results of the company and we will provide it. I don't have it with me now, but maybe investor relation can provide you this information in a week time or whatever.

Okay, thanks for the time. Have a good day.

Thank you. Ladies and gentlemen, let me remind you again, if you have any comments or questions, please press star one one on your telephone keypad. The next question comes from Robert Jackson from Banco Santander. Please go ahead.

Hi, good morning, gentlemen. First question is related to the sequential improvement in margins. Can we have any further granularity in terms of improvement? For example, raw materials have been coming down and we're expecting to come down further during this year. Could that be relevant going into June throughout this year? That would be my first question.

Robert, I think we talked about that issue in the red show, and it's very relevant. We have been renegotiating the contracts the last six months with most of our clients, and everything regarding extra costs due to the inflation have been reflected in those contracts. So, you know, inflation is always a risk in this business. But for the time being, and as far as we know, we have properly protected our risk regarding inflation in these renegotiations. So we feel comfortable. And the margins we are predicting now have already included the impact of that inflation.

Okay. The second question is related to looking ahead to the project in the Hanseatic Energy Hub project, which is a JV with other players. Could we be expecting to see more of those type of projects, which could be supportive, again, also in margins, also in the natural gas segments?

I mean, hi Robert, this is Juan, and I'm going to give Eduardo a break. I mean, I don't think we're going to be seeing many more Hanseatic. We'll see some. We'll see some, but I mean, I mean, Hanseatic reflects both the urgent need of Europe and in particular Germany of strengthening it regasification capacity, which Spain has for other reasons. And obviously we were there, they came to see us, we started the bidding process and they liked us, which is good as we've done a very large percentage of the ones in Spain. And then we put together a strategy ourselves with the partners that we felt more comfortable to manage the deal, you know, civil construction and mechanical erection. But I don't think we're going to be seeing many more in Europe. But what we're going to be seeing, and that's what Eduardo explained via gas wave, we're going to be seeing not regas, but gas treatment plants, very big ones, and very soon in many parts of the world, but very specifically in the Middle East. where the gas is. I mean, there is a great need to invest in gas treatment plants. And there, I do believe we're good. We're good in the process plant. We have delivered the largest ones in the world, and we're very well positioned. You know, we're also very well positioned to read gas, but we're not going to be seeing that much. That was an opportunity. We're good. We made a lot of money in Spain many years ago, and now we need we put together a wealthy risk strategy for a German customer.

But also, I mean, the structure of the project, JVs, should we be expected to see more JV-type projects? And hence, again, de-risking the outlook as well in different segments, for example.

Yes, Robert, you're going to see that strategy more often. And you're going to see, you know, when all of you analysts are looking for growth in sales, are we going to go $5 billion plus, $6 billion or whatever? Well, you know, we're going to be sacrificing volume for a solid margin. And that's the message. Here, we're going to go on by ourselves. I mean, when an investor needs a pre-gas plant, They look for TRs. They don't look for construction companies. And then we're the ones to decide whether to go by ourselves and have it turn over $1 billion, and maybe some of you would have been very happy. $1 billion, wow. Or go for just 50% of it, start up with a very solid joint venture. You know, probably one of the best construction companies with more experience in the field of work, which is not easy. for the tanks and the yetis. And there are companies that we have worked with them before, and a company with whom we have worked with them before, which is working in Germany now, that is very good on the erection part. So that was, I think it's a good example of the strategy that we had tried to explain through the roadshow that finished 10 days ago. You know, we're sacrificing volume for solid margins.

Okay, and just last question. Could we have any visibility regarding your growth potential in North America related to the energy transition? Could you give us any messages there? Any update?

I mean, North America, you're not going to be seeing very short-term results. you might be seeing some short-term results with our traditional customers in North America and in North, North America. So I give you a hint what it is, which means customers are sitting with us. Are we bidding or, uh, trying to structure traditional energy customers, which we had worked before trying to structure deals that, but are we moving forward? We're putting together a team. We're putting together, we're hiring good structuring people, which is a step forward to what we've done before. As we do believe, we have a lot to offer. We have a lot to offer from the structuring side, and then we will revert to our engineering capacity and technology capacity. We have to offer both. But that's not going to be, that's, as Eduardo said, is second, third wave. But we're going to be seeing maybe, you know, I think the world is moving so fast that maybe third wave goes ahead of the first one. But are we moving forward? I mean, we're not being lazy about it. I can guarantee you that.

Okay. Thank you very much indeed.

Thank you. The next question comes from Ignacio Dominic from JEP Capital. Please go ahead, sir.

Yes, good morning, guys. Thank you for taking my questions. Just one question from my side, please. My question is related with Algeria. I believe you mentioned you are working with Sonatrack to find alternatives and solutions for the Hasim Esau project. So I was wondering, how are these conversations evolving with the client? And in general, in Algeria, what could we expect in the upcoming months? Thank you.

Obviously, we explain and we put in all the presentations. It is a job that both Samsung and ourselves started the job. A very large percentage of engineering is done. Then we go through the pandemic. And now we're exploring with the customer what is the most efficient way to restart or to reconvert. And even not to continue. I mean, everything is open. But, I mean, I think the willingness of TR, the willingness of the contractor and of many of our customers is to find a way to continue, which is, I mean, you have to realize that probably TR today is one of the best companies, and I feel very comfortable saying that, worldwide, to do grassroots engineering projects. and we can put together different alternatives, value-saving engineering ideas to restructure the deal. And that's what we're working with. So we see it as an opportunity. We see it as a very good opportunity. But we have three or four months to find the best solution for everyone, always in friendly, good terms.

Thank you.

Thank you. The next question comes from Alvaro Alenze from Alantra Equities. Please go ahead.

Hello, can you hear me? We can.

Okay, sorry. I lost the line. Well, thanks for taking my questions. Just a couple The first one is on the margin expansion. If you could provide some more color because you have increased margin sequentially despite the slightly lower sales and your overheads being roughly unchanged. So I assume that the project from the margins has been increasing it. So I wanted to know whether this is due to a change in the mix. So less profitable projects are contributing less to sales and more profitable ones are contributing more or is it just on a contract by contract that you are managing to increase the margins. I don't know if that's due to the change orders or due to cost management. So any insight on that and therefore the main reason for continuing improvement for the coming quarters in margins, that would be very helpful. And the second question would be on the evolution of your cash position. It has been probably flattish this quarter. Of course, you will now have the proceeds from the capital increase. then how should we expect the net cash machine to evolve through the year considering the expected deployment of the proceeds and the evolution of working capital during the execution of the backlog? Thanks.

Hello, Alvaro. Margin expansion. Well, there is no... there is not a secret hidden anywhere. I mean, it's, you know, some products have good profitability, some others have a smaller profitability. And I think we are finishing or the price with a smaller profitability have a smaller impact now in our accounts because they are about to finish. I think that's probably the main reason of why little by little we see the margin improving. And that's why we feel comfortable, again, with the with our forecast, you know, because the remaining projects in the backlog have a healthy margin. So, well, if we take this 4%, it shouldn't be a big challenge. But there is nothing extraordinary happening. It has no impact with overheads or whatever. I mean, it has to do with the profitability, underlying profitability of the remaining projects in the backlog. Regarding the cash, well, we have 150 additional cash this year, this month, but as I have tried to anticipate in the presentation, we have to be very careful about piling cash in the balance sheet. It's great for the picture, but it's not good for the business. Today, clients are demanding us to accelerate everywhere around the world, and the only way to accelerate is to is to use this cash received from the clients and from any other resource to pay suppliers and to accelerate the project. So my expectation for the end of the year is we will see a better picture of cash, but I can assure you that I will try to avoid to have a large amount in my balance sheet because it's nothing but a good picture. It's not good for the business. I will try to manage it in that way. I think it's a wise way to do things now.

Okay, thank you very much.

Thank you. The next question comes from Mick Pickup from Barclays. Please go ahead.

Again, just to follow up. And just practically, you'd say low carbon tech is 4% of your backlog at the moment, but it's only 3 million of revenues in the quarter. And following on from Kevin's question, can you just tell me what sort of scale low carbon tech you expect to be this year? And then just on the back of that, will we at the half year get margins by the new divisions as well in the full report?

Hi, Mick. We will provide you next quarter the results by segment, as we used to do every half year and every year end. And yesterday, the impact in our backlog and our revenues of this low-carbon segment is still small. But by the end of the year, we are waiting to have the first conversion of a full EPC. You know it. It's Amsterdam. And hopefully you will see a jump in the revenues coming from this segment by the end of the year. I don't know if we are going to convert it in July, August, September, October. So I cannot predict what's going to be the exact impact. But you will see a jump in revenues finally. And I'm talking about year 2024, sorry, 2023. In 2024, we will see obviously bigger volumes of bids, backlog, and revenues coming from the low-carbon sector. And regarding the margins, I think the idea is we should not expect higher margins than our traditional business, but we believe that they are going to be more secure because we have been involved in the project from the very beginning, In most of the cases we are participating, the feasibility studies, feeds, and, you know, we know well the project. So when they are going to be priced, we believe that we will put the correct price and the right cushion inside that price to be protected versus any difficulty we could foresee. So that's what we expect to happen.

Okay. Thanks a lot. Yes.

Thank you. The next question comes from Francisco Ruiz from BNP Paribas Exxon. Please go ahead.

Hello. Good afternoon. I have just one question, a follow-up on Alvaro's. You commented that this is from the right issue and, I mean, this excess of cash would be used to accelerate projects paying suppliers. Is this... something that you need in order to achieve the proper execution, or this is something that you could be on top of your plans and this could imply a better margin at the end of the day. Thank you.

Francisco, the reason to accelerate has nothing to do with being delayed. It's just our target, our common target. Both the clients and us, we are looking for accelerated projects because they want to have the plants operating the sooner the better. That's the idea. If we can get any additional profit from these acceleration plants, we will talk with the clients. we are not foreseeing any kind of improvements of our margins because of that. But I have to be honest with you, it's always difficult to reach the milestones, to finish the project on time. So it's always good for all of us to accelerate, despite you get any additional profit or not. It's just a way to secure the predicted margins. So that's why. But there is not a delay we are trying to cover with acceleration plans.

Okay, thank you.

Thank you very much. There are no more questions. Dear speakers, I give you back the floor.

Okay, I think we've been quite efficient this time. Joaquín is here, which has not answered any questions, which is very ready to answer, but Eduardo and I didn't give him the opportunity. Joaquin is leading today the energy transition business. So I'd like to thank him for being here, being ready to answer any questions. But obviously I'd like to thank all of you for, again, for this, you know, very successful and support that we had from many of you and most of you on this rights issue. And thank you again for listening and posting important questions in this first quarter presentation. So we'll be seeing and talking to you again in July. And so thanks a lot and looking forward to talking to you soon.