Leonardo George de Magalhaes: Well, our investments program, as we mentioned, is BRL5.5 billion a year. We know that the investments in generation distribution were fully executed in this year. Part of this, as we said, maybe — they may be executed in the first half of 2024. But in terms of absolute amounts forecasted for the year, we believe that we’ll be close to 85% — 90% of the whole program for this year. So this is a success in the implementation of this program. We are confident that we’ll be able to execute almost all of it. What happened here is a process that we understand that is only natural, that is part of the program is a smaller share of the BRL5.5 billion. Had a delay of a few months, but it will be fully executed in the following year.
And now talking more about our investment program for 2023, 2027, that we disclose to the market close to BRL18.5 billion. And we are confident that we’ll be able to execute the whole program in full up to 2027. The company has already organized itself internally its supply, logistics, areas, also execution, hiring, suppliers, material, services, so that this program is executed. So we are confident that this will be executed. So the message is for this program of BRL5.5 billion, the largest one, and the company will be able to execute close to 90% this year. Just a small percentage will be executed in the first quarter of next year, 2024.
Carolina Senna: Thank you, Leonardo. Our next question is from Fillipe Andrade, sell-side analyst for Itau BBA. I will ask to Dimas to answer that. The question is, considering the recent volatility of the hourly spot price, how Cemig believes that the price will behave in the wet period?
Dimas Costa: Guilherme, right?
Carolina Senna: Fillipe.
Dimas Costa: Thank you, Fillipe, for your question. I have already mentioned the another answer for Carolina. This is what I believe. As I said before, there was a combination of adverse factors that ended up causing a dispatch for the TPPs. We know that we might have, you know, the sweat period, rains in December and January. So we believe that we are now having a return of Angra 2 and 3. And we believe that with the wet period that we are going to have, there will be an increment in hydraulic reserve to face these high temperatures. So we do not believe in a price variation as I said. I believe it’s going to be very small on a monthly basis. Maybe there is a specific time where you might double or triple the spot price, but we do not believe that it’s going to triple it.
It might have an increase because we might have a need for thermal dispatch, but the reservoirs will be able to supply the high temperatures. But we do not believe this is going to have an effect. We are ending the dry period with the reservoirs at an all-time high, close to 75%. And we believe that the wet period ends, the reservoirs will be close to 90% or 85%. And again, this is a combination of load growth, temperature. And also we still have — well, GD — DG never stops. Right? We have already heard here the amount of — will take, energy that comes in from DG, and that involves the increase of available energy. So we have an over contracting here close to 30%. And in this decade, it will end the decade close to 22%. So it’s very difficult even with temperatures to have any effect on the price unless it is something very momentaneous.
But we don’t believe on it. I don’t know if I answered your question.
Carolina Senna: Dimas, thank you. He has another question for you. Cemig believes that this volatility may impact its results in the trading in 2024?
Dimas Costa: No. As I said, we are going to have an impact in 2024 trading, but that is because of the generalized price drop that we had. And — so yes, there will be an impact in the results for the trading for next year, but not because of volatility or spot price. This will not affect the results. Only the macro issues, something temporary and very much — specific will not affect the process here.
Carolina Senna: Thank you, Dimas. Next question is for Marco Soligo. For Gasmig, Marco. And the question is from Guilherme Lima from Santander. What can we expect from Gasmig’s EBITDA if the EBITDA of BRL230 million is a referring one, and what can we expect in terms of EBITDA for this company?
Marco da Camino Ancona Lopez Soligo: Hello, Guilherme. Thank you very much for your question. So, yes, you may consider that annualized EBITDA as a recurring one, and for next year you may expect an organic growth. You can project a little bit of volume and you will get to a very consistent number. That’s it, Carolina. Thank you.
Carolina Senna: Only two questions more to go. The next one is for Thadeu. Please, Thadeu. The question is, will Cemig take part in the next transmission auction in December?
Thadeu Carneiro da Silva: Good afternoon, everyone. Thank you for being here with us. We will not be part of the auction in December. The lots that ANEEL was offering have no synergy with the lots that we have in operation today, therefore we will not be participating in that auction.
Carolina Senna: Thank you. And our last question is for Leonardo. Leonardo, the question is from an investor from Liberty. The funds from the non-strategic sale can be turned into higher dividends or interest on equity for shareholders.
Leonardo George de Magalhaes: Thank you for your question. We believe our strategy is very much sustainable and we want to invest in assets that will add value to our shareholders, especially in regulated markets where we understand that return is very attractive for investors. And at the same time, we want to maintain a dividends policy that is also attractive. So we want to invest and create value, and also to have dividends among the best ones in the sector, and to maintain leverage at comfortable levels which will allow the company to participate in a business opportunity in which it might have a buffer in its liquidity to take part in a possible business opportunity. Our leverage today is very low. It’s close to 1 time of the EBITDA.
