Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Celsia SA Esp (BOG:CELSIA, Financial) reported a healthy net utility growth of 35% over the quarter despite a decrease in EBITDA.
- The company successfully mitigated the effects of the El Niño phenomenon through strategic energy transactions and climate derivatives.
- Celsia launched the first solar energy storage system in Colombia, marking a significant milestone in the country's energy transition.
- The company is progressing with the Carreto Wind project, expected to deliver 9.6 MW of clean energy by the end of the year or early next year.
- Celsia's share buyback program has resulted in a 55% increase in stock price since its announcement, demonstrating strong shareholder value creation.
Negative Points
- Celsia experienced a 5% decrease in third-quarter revenue compared to the same period in 2023, primarily due to lower asset transfers.
- The company faced a 17% decrease in EBITDA, attributed to increased generation costs and the effects of the El Niño phenomenon.
- There is ongoing concern about the low levels of water reservoirs, which could lead to energy shortages if not managed properly.
- Celsia's operations in Central America contributed less to the overall EBITDA, raising questions about the strategic value of these assets.
- The company is exposed to potential risks from the gas supply for thermal plants, which could impact operational costs and energy availability.
Q & A Highlights
Q: Is Celsia's sales growth expected to surpass inflation, and if so, by how much?
A: Esteban Piedrahita Montoya, Finance Leader, explained that while exact figures are not available, the growth over inflation is anticipated due to new asset deployments and investments in platforms like C2 and COAL Group. This growth is supported by the stabilization of Tresor Itom and reductions in operational costs.
Q: With reservoir levels low, is there a risk of blackouts in Colombia next year?
A: Ricardo Sierra Fernandez, CEO, and Carlos Solano, Regulatory Affairs Leader, addressed concerns about potential blackouts. They explained that while the system is stressed, measures like activating thermal plants are in place to manage the situation. The risk of blackouts exists but is mitigated by these efforts.
Q: Can you explain the impact of the shortage statute on Celsia?
A: Carlos Solano clarified that the shortage statute aims to increase reservoir levels by prioritizing thermal generation. Celsia's diversified portfolio of hydro and thermal assets minimizes the impact. The statute remains active until reservoir levels exceed reference paths.
Q: How does the high stock market price affect Celsia and its customers?
A: Ricardo Sierra Fernandez explained that while high market prices affect transactions between generators, they do not impact final customers directly. Celsia's balanced portfolio helps manage costs, and regulatory mechanisms protect customers from price spikes.
Q: What is Celsia's strategy for its Central American operations?
A: Ricardo Sierra Fernandez stated that Celsia remains focused on B2B assets and potential projects in Central America. The company is exploring opportunities for growth and development in the region, despite a reduced contribution to overall EBITDA.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
