Edited Transcript of ANA.MC earnings conference call or presentation 8-May-20 8:00am GMT

We have also stepped up our social contribution initiatives, helping our SME clients in financial difficulty; working with health authorities to strengthen our service provision and support in hospitals, particularly those we manage; cooperating to set up of temporary hospitals; donating thousands of health kits or logistic and facility management support to public administrations. As always, in ACCIONA, our overriding objective is to ensure that no temporary situation impairs our capacity to continue contributing to all our stakeholders through our medium- and long-term goal.

But despite its enormous challenges, we see the economic policy response to the current crisis as an opportunity to accelerate investment in sustainable infrastructure to help the recovery and economic regeneration in the aftermath of the coronavirus, and we want to be in a position to capture these opportunities. For these purposes, it is imperative to maintain a dual strategy consisting in maintaining very prudent levels of liquidity and solvency in order to be prepared for a possible slow recovery while also being in a position to take advantage of new investment opportunities should the rebound be fast and V-shaped.

Along these strategic objectives, we have increased our credit lines by more than EUR 850 million during March and April. We have obtained an investment-grade rating from DBRS. We have agreed to delay payments of a significant portion of our 2020 CapEx. And we will propose a 50% reduction of the dividend distribution intended before the pandemic. On an operational side, we have put in place a program to cut operating costs significantly and prepared a wide mature cash generation asset disposal program to modulate proceeds from disposals as may be required to maintain our gearing within prudent levels.

Briefly going over our activities in energy, the most relevant cause of impact in the first quarter has been the collapse of electricity prices in the Spanish market. Output in Spain in the quarter was slightly better than the previous year, but with an improvement in hydro production offsetting weak wind volumes. Production in the international generation fleet before taking into account new capacity was flat relative to last year. Our new capacity additions were only marginally affected, and we expect to maintain our development plans for the year and all other factors remaining equal, over the coming years. As a matter of fact, there is even a chance that we may be able to improve our outlook for ’21 onwards as new development opportunities from less solvent players may arise.

Along these lines, KKR’s recent agreement with AXA to jointly with us acquire its 33% stake in ACCIONA Energía Internacional may prove to be a good source of capital for further renewable energy development. There is obviously no firm obligation from either part, but there certainly is a good fit between our core competencies and interests. We will try to build upon them naturally without giving up on our flexibility and our independence.

We also see new opportunities arising from public drive to kick-start economy recovery through investments in renewables and other sustainable infrastructure. It is basic logic that if we’re going to have to replace a big portion of our energy matrix in the coming years, we might as well start now and cover both the necessary stimulus and the undelayable infrastructure upgrades. This is particularly true for electricity generation, but it is also applicable to energy efficiency, to electricity, transport and distribution, urban and mass transport infrastructures, electric and shared transport and a long list of long due changes in the means and habits of modern society.

As regards our non-energy infrastructure division, coronavirus impact has been somewhat deeper and varies within regions. We are, however, seeing reasonable swift return to relative normality and even in highly affected countries like in Spain, in general, things are turning to normality quickly. The most affected region is Latin America, where some key jobs still remain at a standstill. Again here, there is general public consensus that much needed social, transport, waste or water infrastructure are the most efficient means to quickly restore economic activity. And here, PPPs will have to play an important role in overcoming public budget constraints.

Fortunately, however, our construction and concession backlog is strong — strong enough to withstand the temporary standstill of new project awards should this happen. As for our other businesses, very mixed impact, but nothing dramatic in any area, particularly, we remain confident that the temporary effect of the virus will be limited to a few months, as is now our view.

Liquidity-wise, we are fine with $4.1 billion in lines and cash equivalent assets. Just in case, as a contingency plan, we are ready to quickly make liquid mature assets for which demand remains strong. As for operational matters, like everyone else, we have quickly and flawlessly adapted to homeworking with physical presence wherever necessary which we believe, in the medium-term, will become standard, brings significant savings, added efficiencies and often better quality of life to the organization. We have decided that it was an appropriate moment to align our asset amortization policies with market practices. And most importantly, our own technical view on the reality of our assets — of our assets’ life goes beyond the new 30-year depreciation horizon.

All in all, we see the bottle half full. If the crisis evolves, as we see it now, i.e., quickly receding over the next few months, it may prove an opportunity for more business, faster growth in energy and non-energy infrastructure and better work habits. Needless to say, the bottle could also be half empty, in which case, we have a strong contingency plan and are very confident about our capacity to weather an even longer and nastier storm.

At this stage, as difficult as it may be to make any solid prediction, my best judgment is that we will finish the year around the mid-teens below last year in EBITDA, mid-4s in net debt-to-EBITDA ratio and about 30% below in CapEx disbursements, but not — but close to plan in actual execution. Thank you very much. Good luck, and stay safe.

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Jose Angel Tejero Santos, Acciona, S.A. – Group CFO [3]

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Thank you, José Manuel. Following José Manuel’s introduction, we have included for your reference in more detail about preliminary implications of the pandemic in our 2 main businesses of energy and infrastructure. With respect to energy, let me first mention that the operation of the asset fleet is according to plan with very good performance in terms of availability and safety indexes. José Manuel highlighted already that the main implication of the COVID is a steep decline in power prices in Spain, which will be partly mitigated by the regulatory banding mechanism on our hedging of unregulated volumes. The decline in average Spanish power prices to the mid or low-30s, together with a EUR 50 million lower regulatory income could have an impact of EBITDA of around EUR 80 million to EUR 95 million in 2020 relative to previous year. On the other hand, we have incremental EBITDA from new capacity, and volumes from existing capacity should, in principle, be a bit higher than last year. New capacity should contribute incremental EBITDA of around EUR 60 million this year.

In terms of growth, there’s little disruption, and we are positive about our medium-term plans and the scope for more opportunities to arise. In particular, we continue to make good progress with respect to our largest medium-term developments of the Tenaska solar pipeline in the U.S. with high visibility for at least 1.6 gigawatt for the period up to 2024, and MacIntyre, in partnership with Queensland government, which is one of the largest wind farm in the world with approx of 1 giga of total capacity. This is in addition to the 1.1 gigawatt of facilities currently under construction or about to start with commissioning dates in years ’20 and ’21. Tolpan wind farm in Chile has been fully installed in the first quarter. Two wind farms in Mexico, Santa Cruz and San Carlos; one in Australia, Mortlake; one in the U.S., Chalupa; and one solar PV plant, Usya, in Chile, are under construction and another 226-megawatt in solar PV will start construction this year in Chile. These short-term projects under construction, together with Tenaska and MacIntyre would cover for approximately 70% of our 5 gigawatt total growth targets for the period 2024. In the private PPA market, appetite remains strong, and we continue to make good progress with our current PPA pipeline.

Moving on to the infrastructure business. This is where we envisage the largest financial impact in absolute and relative terms. But also, this is where it is more difficult to predict given the different ways local governments, authorities and clients have reacted to the pandemic. We expect construction and services to be the most impacted and envisage limited impact in concessions and water. Infrastructure is generally seen as an essential activity and as a key driver for economic recovery. Tendering activity remains strong, and we are contracting according to plan. Having said that, in construction, the small delays in what we call Win and Do projects during this year may translate in lower revenues in 2020. Suspension of work has been limited and out of 461 construction projects, roughly 426 are up and running. Nevertheless, the majority of sites experienced some temporary incidents due to more restricted labor mobility and health and safety practices. All in all, this could translate into a decline in production that in aggregate would equivalent to several months of revenues, somewhere in the range of EUR 600 million to EUR 800 million.

In Slide 10, we have included a detailed overview of the implications of the pandemic per region. As José Manuel mentioned, LatAm remains the most affected region with respect to the suspension of works. On most other regions, the picture is much more optimistic at the moment relative to where we were a few weeks ago.

Following the update on the COVID situation, let me start with a review of the first quarter results. On Slide 12, we present the key highlights. The first message is that Q1 results starts to show some signs of the impact of the pandemic, which we quantify in EUR 24 million of lower EBITDA. The early impact of the pandemic affects mainly to the Spanish energy business, and to a lesser extent, the services activity, to road concessions in Spain with exposure to traffic and Bestinver. As of the end of March, construction was still relatively unaffected. In Q1, we have reported flat EBITDA relative to the same period last year despite $24 million impact of the COVID. The key operating trends are low Spanish power prices and the reduction in our regulatory income in Spain, as a result of the periodic adjustment related to the past and future power prices. This is partly offset, amongst other elements, by the contribution of new capacity and marginally better overall output. In infrastructures, EBITDA is down due to the fact that in Q1 last year, we still had a material contribution to profit from Quito Metro contract, Mexico Airport and the contribution of ATLL in the first quarter. And some other minor contracts that were in their final stages.

There are 2 changes in reporting. One is a presentation about the EBITDA line of income from equity accounted investments that fit within the group’s main activities such as renewal, concessions, construction. This is a proxy of how the rating agencies look at operating profits. The EBITDA figures for last year are presented in a consistent manner to help comparability. In addition, as already mentioned from the 1st of January this year, we will depreciate the remaining book value of wind and solar PV assets over 30 years rather than 25 years. In terms of investing for growth, we have not stopped making progress towards achieving our growth targets and aspirations. Total investment is at similar levels than last year, but much more concentrated in the energy division.

Moving to Slide 13, we present the key figures. Revenues were down by 5.1% due to lower revenue — energy revenues. Infrastructure reported flat revenues. EBITDA reached EUR 325 million, in line with the EBITDA generated in the same period of 2019. Energy grew its EBITDA by 2%, while infrastructure fell by 26%. EBITDA of other activities improved, thanks to the real estate offsetting lower contribution from Bestinver. Earnings before tax are up 8.4%, reaching EUR 128 million. I noted earlier that high accounting life of our wind and PV assets, which has translated in EUR 21 million lower depreciation charges. As a result of the higher useful life, we have accounted for a partial reversal of the loss recorded in 2013 following the regulatory reform in Spain, resulting in positive effect of EUR 87 million, as you can see in the impairment line of the P&L. Net income increased by almost 7% to EUR 78 million. Total investment amounted to EUR 322 million, and that is the main driver for the increase in net debt during the quarter from EUR 5.3 billion at the end of ’19 billion to EUR 5.6 billion at the end of March ’20.

In Slide 14, we provide the breakdown of CapEx during the quarter by division. The vast majority of the investment cash outflow during this quarter is related to the construction of new energy capacity in Mexico, U.S. and Chile. Investment in the infrastructure division amounted to EUR 38 million, reflecting mainly the purchase of equipment in construction, and in the case of services, in the area of mobility. The investment in real estate inventories during the first quarter amounted to EUR 6 million relative to EUR 133 million the previous year, which included the Mesena project acquisition. I look forward to the year we see a sharp reduction in the investment cash out as proper arrangement has already been taken in order to reduce it.

In Slide 15, we show the drivers for the evolution of the net debt from December to March 2020. The increase in net debt is driven by investment during the period. Working capital reflects the usual first quarter seasonality but also the effect of the regulatory banding mechanism in Spain due to the lower power prices. Working capital cash outflow amounted to EUR 224 million, improving the EUR 289 million figure in Q1 ’19. EUR 119 million corresponds to the infra business.

Moving to Slide 16. You can find detail on the net debt position and its key metrics. With no major changes in the infrastructure — in the structure of our funding other than the cancellation of EUR 708 million deposit that we had as of December ’19 related to the Nordex offer, deciding increase both the cash balance and the corporate debt with a neutral net impact. The deposit was a requirement under the German takeover rules and it was canceled on January 10. Our average cost of debt has continued to show improvement during the quarter relative to the average during ’19 financial year, and we have increased slightly our average debt maturity.

In Slide 17, we focus on the current liquidity position. We saw the most recent month-end figures as of April 30, with total liquidity standing at close to EUR 4.1 billion, which is one of the highest in recent years, more than 3x the debt maturities for the rest of the year of EUR 1.3 billion in total. This very comfortable liquidity position reflects our incremental liquidity initiatives implemented since the early stages of the pandemic in mid-March. These actions were aimed at absorbing the entire outstanding commercial paper of ACCIONA in the unlikely event of not being able to renew any of it without having to reduce our normal levels of undrawn facilities. The main initiative was arranging [EUR 852 million] of new facilities from our supportive pool of relationship banks. In the meantime, and despite the market disruption caused by the COVID pandemic, we have continued to renew our usual bilateral credit lines and loans and extended during the crisis our 2 largest syndicated facilities to 5 years from maturity ’24 to ’25, as we do every year in more normal circumstances. We have made public our DBRS investment-grade rating to make us eligible for European Central Bank debt purchase programs and improve our access to credit markets in a more advantageous terms in this more volatile environment.

Starting with the review of the operating performance of our businesses. In Slide 18, we present the Energy division. EBITDA grew by 2.1% to EUR 244 million with a COVID impact of EUR 15 million. The Spanish generation fleet reported 6.8% lower EBITDA due to the business being affected by the lower power price environment, exacerbated by the COVID. Firstly, by reducing gas demand in China, which fed into further pressure in already oversupplied gas markets. The Spanish lockdown has had a very deep temporary impact on — in demand, which has fallen by more than 20% relative to the first week of March, right before the lockdown. And the worst time, the week beginning of the 6th of April, demand was 26% lower, recovering — recovering by 7% as the stricter phase of the lockdown was lifted. Commodity prices have also been responding in May as we pass the peak of the pandemic. The average Spanish price during the quarter was EUR 34.9 megawatt hour, down 37% from the previous year. The impact on EBITDA has been partly mitigated by the regulatory banding mechanism, which establishes a floor for this year at EUR 48 megawatt-hour. And our hedging of parts of our volumes production in Spain improved by 2%, thanks to a better hydro output, but wind was weak. And we are still below normal year expected production. The average power price for the year 2020 is expected to be around EUR 33 megawatt-hour on the basis of real prices to date and forwards. And our estimates suggest a slightly higher price. These are, in any case, some of the lowest prices in the history of the Spanish wholesale market. In terms of hedging, for 2020 as a whole, we have sold 2 terawatts-hour at a price of close of EUR 50 a megawatt-hour. And for the remaining quarters of the year, the hedge position is 1.6 terawatt-hour at EUR 48 megawatt-hour. The periodic regulatory update approved earlier this year will detract approximately EUR 50 million of annual regulatory revenues for the next 3 years relative to the previous period. In Q1, this meant EUR 10 million lower EBITDA.

With respect to the international business, its EBITDA grew by 3.4%, thanks to new capacity in operation, which increased by 554 megawatts during the last 12 months and contributed EUR 12 million of incremental EBITDA during the quarter. The new capacity, although there may be some small delays in new commissioning this year, should contribute incremental EBITDA of around EUR 60 million this year.

Moving to the review of the infrastructure division. Revenues were relatively flat at EUR 1.1 billion with lower construction revenues, offset by revenues in the water that almost doubled its production compared to last year. As commented earlier, during Q1, construction was not yet affected by the pandemic. Its EBITDA fell from EUR 47 million to EUR 25 million. As in the first quarters of last year, we still had a significant contribution from Quito Metro, Mexico Airport and Atacama power plant. The water business EBITDA increased by 21% from EUR 15 million last year to EUR 18 million in this first quarter. The EUR 15 million EBITDA in the first quarter of last year included EUR 11 million of contribution from ATLL. So the underlying growth driven mainly by desalination projects in the Middle East is of EUR 15 million year-on-year. The concessions EBITDA is flat despite the negative impact of a small asset disposal and the COVID impact on 2 roads concessions in Spain that are exposed to traffic volumes. EBITDA in the services activity fell by 37%, being one of the businesses of ACCIONA most affected by the early spread of the pandemic as discussed. Our total backlog has grown during the quarter and stands at very healthy levels of EUR 11.6 billion, out of which EUR 8 billion corresponds to EPC projects, giving our infrastructure business excellent revenue visibility post-COVID.

To conclude the review of operations, the property development business reported EUR 10 million EBITDA in the quarter, which represents improvement of EUR 16 million driven mainly by the delivery of 130 units during the quarter. Total estimated gross asset value, dominated by development assets, with marginal commercial properties, stands at almost EUR 1.1 billion with substantial future EBITDA embedded in this investment. Bestinver EBITDA fell by 18% to EUR 12 million, reflecting for the most part of the COVID impact on average funds under management. And finally, I would like to elaborate on the indications provided by our Chairman on how 2020 financial years may turn out to be. With all the caveats he stressed about, the complexity of the situation. This highly provisional expectation may well change for the better or for worse as the global health situation evolves. Our current basis scenario is that the impact of the pandemic will be concentrated in the second quarter and is followed by a gradual recovery in Q3 and Q4. At the EBITDA level, we currently envisage a drop in the range of plus/minus 15% relative to ’19 as working as scenario. In terms of net debt-to-EBITDA ratio, we expect to temporarily be exceed our stated financial policy of below 4x, and our priority is to contain this exceptional increase to levels below 4.5%. We remain committed to returning during ’21 to levels consistent with our financial policy as the recovery of the economic environment takes place. And thank you for your attention. And now we would like to start the Q&A session.

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Raimundo Fernández-Cuesta, [4]

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Thank you, José Angel. (Operator Instructions)

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Questions and Answers

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Operator [1]

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(Operator Instructions) The first question comes from Oscar Nájar from Santander.

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Oscar Nájar Ríos, Grupo Santander, Research Division – Equity Analyst [2]

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This is Oscar Nájar, Santander. Thank you for the call, very clear and detailed. I’d like to ask 2 questions. The first one is for the new target of EBITDA minus 15% for this year. One clarification. Is this already including the EUR 100 million cost-cutting program? So it should be like EUR 200 million net decrease, including this cost-cutting program. And if you could give us more details on the construction. I think you said something about EUR 600 million to EUR 800 million of revenues that could be affected. So that amount of the revenues you are expecting to be lower versus 2019? And the second question is regarding the leverage. Now you said, you are targeting like 4.5x and trying to be even lower than that. There is any covenants that could be affected at some level? And if so, which is the level?

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Jose Angel Tejero Santos, Acciona, S.A. – Group CFO [3]

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For the first question, the answer is, yes, it includes. The second question was in relation to the revenues on the infrastructure, no. The — I mean, it’s not in relation to last year. I mean, it has to do with our expectation in respect to our budget for this year. On the leverage, I mean, we are not concerned about breaching any covenants.

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Operator [4]

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Next will be Fernando Garcia from RBC.

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Fernando Garcia, RBC Capital Markets, Research Division – Analyst [5]

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Again, on clarification on the 2019 EBITDA. This includes the EUR 80 million equity account results? I wanted to clarify that. Second question is regarding this 1 gigawatt run rate. When do you expect of new installations — when do you expect to reach that level of installations and taking into account this new maybe net debt-to-EBITDA target of no more than 4.5x? In the scenario that we are going to have some cash outflows on CapEx of EUR 500 million, probably next year. Is this going to be the main target and you are going to adjust your investment based on that?

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Jose Angel Tejero Santos, Acciona, S.A. – Group CFO [6]

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Yes. The first question is yes. But for comparison purposes, the last year is restated. So it is yes. Now in respect to our growth rate of 5 gigawatts, as I stated in the presentation, we maintained our growth rate. 70% of our target are already on identified projects. And on the financial ratios, again, I — as I said, although this new target or this — the expectation for this year is not a new target. We expect to come back to ratios around 4x net debt-to-EBITDA next year.

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Operator [7]

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The next question is from Manuel Palomo from BNP Paribas BNP.

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Manuel Palomo, Exane BNP Paribas, Research Division – Analyst of Utilities [8]

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I’m sorry to insist on the full year ’20 target, but I think that I had some technical issues. So when you say 2019 reported figures, this 1,357 million EBITDA, what you’re referring to? If not, could you tell us what is the reference, what is the figure? That’s the number one question. Second one is a bit of forward looking. It’s looking beyond 2020. My understanding is that for the year 2019, you’ve got a significant amount of energy that has been already hedged. So my question is looking at the decline, in COVID prices and where they are today, where the forwards are, what is your strategy? Or what is your — I mean, better outlook for the energy division and the strategy in terms of hedging beyond 2020?

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Jose Angel Tejero Santos, Acciona, S.A. – Group CFO [9]

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In respect to EBITDA of reference, for the 15% the decline is 1.437. So the EBITDA is restated. In respect to the hedging policy, I mean it remains to — the same. Our international fleet, we have a strong demand for private PPAs, and we do the hedging through that mechanism for the Spanish market. I mean, we have the regulatory banding. We have the financial hedges. And also, we have what we see in Spain is a strong new interest on longer-terms PPA, private PPAs, so forth.

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Operator [10]

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The next question comes from Mikel Zabala from Bank of America.

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Mikel Zabala, BofA Merrill Lynch, Research Division – Associate [11]

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So 2 questions for me, please. Would you mind expanding a bit more on your disposal options, particularly beyond what you already announced, so the EUR 500 million infra and 5% in ACCIONA Internacional? What could we see here? Are you potentially considering doing something more on energy or simplifying your group structure? And the second one is your 2020 EBITDA target. Does that include dilution for disposals?

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José Manuel Entrecanales Domecq, Acciona, S.A. – Executive Chairman, CEO & MD [12]

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Yes. The answer to your second question is yes. And the answer to your first question, is we are — we have all our assets under scrutiny, and there is no specific — there’s no specific plans on any of the specific assets. However, more liquid assets should they need to be disposed of in order to adapt to the leverage policies. Obviously, the most liquid assets will have to come in first, those which have a better price possibility in the market. So we’re acting very opportunistically here. No specific plans that we can mention, however.

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Operator [13]

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(Operator Instructions)

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Raimundo Fernández-Cuesta, [14]

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If there’s any more questions, we give you — yes, there’s another one coming, I think.

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Operator [15]

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A follow-up from Oscar.

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Oscar Nájar Ríos, Grupo Santander, Research Division – Equity Analyst [16]

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Hello, this is Oscar Nájar again. Two quick questions. The first one is regarding the cost cutting, EUR 100 million seems quite aggressive for the size of the company. But could you please give us more details on how are you going to get this EUR 100 million, is this kind of base effects, et cetera? And secondly, regarding your future CapEx, you said several times that you’re committed to the 5 gigas per year, okay, that we were expecting. But could you give us more visibility on when Tenaska and the Australian new capacity in a yearly basis, what kind of new capacity are you expecting? I don’t know, Tenaska is 300 megas in 2022, 400 in 2023, whatever in 2020 onwards, could you give us more visibility there?

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Jose Angel Tejero Santos, Acciona, S.A. – Group CFO [17]

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On the cost-cutting measures, there is a natural decrease in costs related to the decrease in activity, that accounts for around half of the objective. And then there are multiple cost-cutting initiatives in all parts of the business that accounts for the other half. In respect of the visibility of the Tenaska and Australian projects, these are projects that we have capital deployment, mainly in years ’22, ’23 and ’24. And they will not have a big impact in capital deployment in ’21.

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Raimundo Fernández-Cuesta, [18]

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It seems we have another 2 questions coming.

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Operator [19]

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Question from José Ruiz from Barclays.

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José Javier Ruiz Fernandez, Barclays Bank PLC, Research Division – Research Analyst [20]

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Just one, just a follow-up on previous question from Oscar. On the cost-cutting initiatives, the 50%, the EUR 50 million, is there any cost attached? Any provisions that you have to do?

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José Manuel Entrecanales Domecq, Acciona, S.A. – Executive Chairman, CEO & MD [21]

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That will be the net.

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Jose Angel Tejero Santos, Acciona, S.A. – Group CFO [22]

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That will be the net result. I mean, if we have to do a provision, that means that the actual — the actual saving, it will be higher.

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Operator [23]

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We have a follow-up question from Manuel Palomo.

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Manuel Palomo, Exane BNP Paribas, Research Division – Analyst of Utilities [24]

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Two questions. One is about the provisions you booked in the first quarter 2020. This EUR 68 million, whether you could provide a bit of — well, if you could shed some light on where it comes from? And the second is just sort of a confirmation or helping me to breach the D&A impact for the full year. Could I be almost right if I say, well, EUR 21 million impact Q1 should be pretty much 4x by the full year?

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Jose Angel Tejero Santos, Acciona, S.A. – Group CFO [25]

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On the second one, the answer is yes. On the first one, what we have included is EUR 68 million of provisions in anticipation of different risks.

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Raimundo Fernández-Cuesta, [26]

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Next question please.

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Operator [27]

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We have a follow-up question from Fernando Garcia.

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Fernando Garcia, RBC Capital Markets, Research Division – Analyst [28]

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It’s regarding working capital. I think you said in the presentation that the effect of working capital of Infra business is EUR 115 million. I would like if you can provide further detail of what are the other items of the additional working capital impacts in Q1? And I know that this is very difficult at the moment. But if you could provide some insight of what could be the working capital evolution for the future in the next 3 quarters of the year?

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Jose Angel Tejero Santos, Acciona, S.A. – Group CFO [29]

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I start for the last. In our estimation for working capital for the rest of the year is to — with the logical cycle is to remain, more or less, flat by the end of the year. So that’s our estimation with our new targets. In respect to the breakdown of the working capital, I show you the most important one, which is infrastructure. The rest is 47 in energy, out of which 25 has to do with the regulatory banding with the regulatory banding mechanism. And the rest of it has to do with delayed payments of land plots for last year.

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Raimundo Fernández-Cuesta, [30]

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Okay. Seems there are no more questions. So thank you very much for participating in the call. We look forward to speaking to you soon. Thanks.