Energean plc

good morning ladies and gentlemen and welcome to energy in full year 2025 results call after the speaker's remarks there will be a question and answer session if you have a question we ask that you please use the raise hand function at the bottom of your zoom screen once your name has been announced please unmute yourself and ask your question if you want to withdraw your question please lower your hand using the raise hand function for those watching our live stream we ask that you please use the ask a question tab in the top right hand of your player to ask your anonymous question we will repeat these instructions before we begin the q a section of this call i will now hand over to energy and ceo matthias rigas please go ahead

Good morning and thank you all for joining us for our full year results call. I want to begin as I always do by acknowledging the context in which this call is being taking place and the situation that is evolving around us. The broader Middle East conflict and the regional escalation that we're watching is obviously very serious and the first thing that I want to say is that our thoughts are with the people of the region, our colleagues, our partners and all the communities where we operate safety remains and will always remain the first priority for energy against this i want to be clear today about three things before we get into the numbers and before we get into the results which is the main purpose of the presentation i will talk about where we stand operationally i will talk about how financially resilient we are and why the long-term case of energy and remains intact in my view as you all know when this war started about 20 days ago we were instructed by the ministry of energy and infrastructure of israel to suspend production and all the activities of the energy and power fpso until further notice and reacted immediately as we all do and as i said earlier the safety of our people is our highest priority and we fully supported the decision of the ministry because that is keeping everybody safe for those of you that have followed us and know our story from last year you know that we've been there before so we're managing a situation that we've managed before in june of last year as you remember the ministry ordered us to shut down and 12 days later they gave us the green light to restart it took us 24 to 48 hours to get back up to full production and ended up the year at the higher end of our 2025 guidance our operational team the people that run the fpso run onshore and offshore operations are in the best position to restart our production and get us back online as soon as we get the green light we've done it before we know how to do it and we are standing by ready to restart as soon as we get back the green light to restart the one thing i can't tell you because i will not speculate about how long this is going to take is that we're in constant communication with both the ministry of defense and the ministry of energy and we're all aligned about the importance of restarting this operation and we will restart very soon is my expectation the second point is the obvious question how is this affecting us as a business and how resilient we are let me be very specific i'll give you a very simple number that frames the discussion our monthly running costs in israel are 10 million dollars that's the cost of operating the fpso of people our staff and of course on top of that we have the financial costs but we're sitting on more than 300 million dollars of liquidity all our debt service reserve accounts are filled and most importantly our finance team did a phenomenal job to refinance all our debt facilities so we have no debt maturities ahead of us so there's no financial pressure of course it hurts not to produce from israel but in the bigger scheme of things and with oil and gas in the ground we will produce this oil and gas as soon as we get the green light panels will obviously give you the details but beyond israel all other production facilities in egypt and italy greece which is back on online at the moment we are benefiting from the higher commodity prices and that is strengthening significantly the cash flow of what i call the international business outside of israel another obvious question that people are asking us and are worried about is what's happening with our contracts and our buyers i refer to the exact same situation that we went through before we were in a situation like this last year and force majeure applies we have no take or pay provisions and our buyers are serving the market with alternative sources and as soon as we get on line we will start selling gas to them without any financial burden next important point that and questions that people are asking is what is happening with uh our growth and our projects we find ourselves in a very fortunate situation that catalan our major investment is all the key activities are happening outside of israel for the time being so we see no impact so far on the schedule we remain confident that katlan will be on stream in the first half of 27 again the caveat that this conflict and ends in the near future and we will be able to get back on track to drill the wells that we planned in may bring the construction vessels in may and keep the project going can have the first slide please now despite the challenges that we faced in 2025 we maintained group production at 154 000 barrels a day which is the upper end of our guidance we were able to recover from the shutdown we had last year and get back up to an average of 154. our ebitdax 1.1 billion our operating cash flow of similar levels and the strength of our contracts i remind everyone we have 20 billion dollars worth of gas contracts signed for the next 15 years gives us a very strong base to work from and be confident about the resilience of this business for the future i mentioned earlier about a balance sheet balance will give you more details But I repeat, no pressure at the moment from any front on energy. So we're very confident that as soon as this is over, we go back into normal operations. Last, before we turn the floor to Panos to go to take you through the numbers, I want to talk about our investment thesis and growth, because that is a key focus for us for the year to come. two very important points one or three very important points one in our existing business in egypt we're working very closely with the government to complete the merger of the three concessions that will allow us to invest more in the country we believe in egypt we believe it's a great place to produce oil and gas the country needs every drop of oil and gas it can produce and we have an excellent relationship with the government that is making every effort they can to support us on all fronts and we'll go into details later two in greece we are we completed in March the farm out of the Exxon to Exxon of our well in block 2 and this is a fantastic prospect it's an exploration well that we will drill in February of 27 that has great prospectivity and very limited financial impact on us in a no success case and last but not least and I'll close with this we are continuing to grow we said we will go to west africa and we delivered on what we said as we always do you all know we signed a deal to buy block 14 the operated position of chevron in angola our first project in west africa we needed and we said we would diversify and add a third production lead for our business and we did it we're working now to get to closing it's a great asset that allows us to start from a very nice space in angola our expansion in west africa so overall as i said in the beginning i feel that we are in the best position to manage this crisis we've done it before we know how to manage a crisis like this the team the operating team is in a great position to shut down but most important to restart as soon as possible we're financially strong and we're totally focused on growth and managing all our balance sheet and liabilities in the future i remain confident and optimistic obviously in a very challenging situation but this is what this management is built to do manage challenges and continue the growth of the business as we've always done with this let me hand over to panos to take us through the results of 2025 thank you monsieur good morning from me as well uh moving to slide five please 2025

was a mixed year, with a challenging first six months until June, when our careers field was shut in for a few weeks, but followed by a record second half of the year, where the company recorded average production of more than 170,000 barrels a day, with August being a record month with 180,000 barrels a day. As a result, the total production came in just a bit higher of 2024, at 51.5 million barrels of oil equivalent, with higher gas production offsetting the lower oil production which was affected by the ROSPO oil field in Italy sat down. Total revenue came in flat compared to 2024 just below 1.8 billion with higher gas production and prices achieved as well as the insurance proceeds we had linked to the ROSPO oil incident offsetting the lower oil production and prices compared to 2024. Moving to slide 6, I would like to highlight a couple more KPIs that we always record and guide. Cash, cost of production and GNA, flat, which is actually I have to say a modest reduction if adjusted for the weakness of the dollar versus our sterling, euro and sekel OPEX in 2025. Adjusted bid-tax came in just below 2024 figure, at 1 billion 117 million. The final P&L result however, as flagged in a January trading update, came in at 250 million loss, effectively being the impact of a Cassiopeia gas field impairment, which including the annual depreciation on the field, plus the adjustment of the deferred tax asset had an impact of circa 550 million. So if adjusted with that the profitability of the business would have been almost double than last year. CapEx, development CapEx specifically came in 20% lower than 2024 but still pretty high and we want it to be high because that means that the Catalan project is going as planned. And our APEX came in at 60 million at the lower end of the guidance, reflecting better performance of decommissioning costs and the ability of the teams, respective teams, to keep on deferring decommissioning. Moving to slide 7, please. A familiar slide for people that follow our presentations, but always an important one to highlight the commercial structure of our revenues where the long-term gas contracts in israel and egypt have a half floor price mechanism protecting our base revenues and profitability when oil and gas prices are low but then are complemented by circa 20 percent of our total production being priced off brent and psv representing 40 percent of our revenue stream in 2024 and 30 percent in 2025 We expect these prices to remain as they are now during the 2026 and I'm not talking about 110 barrels. We have adjusted our profiles at around 80 to 85 for the full year. We do expect these open market barrels of our total production to make more than 50% of the total revenue of the year. Slide 8 please. So, in a very challenging and volatile environment, as Matthios mentioned, for our sector and especially in the region we operate, our capital structure provides us enough flexibility and time to manage both our liquidity and capital allocation at the most optimum way. On the back of our 18-year reserve life and more than 20 billion of gas contracts expanding well into the late 2030s, We have a weighted average maturity of other loans of around 6 years and a weighted average cost of debt of 7%. But most importantly, no debt maturity until 2028. Our net debt position for the year came in 50 million higher than guided at 3 billion 250. but that was the result of effectively slower recoverability of our ngpc receivables in the year versus what we were expecting however i have to flag here that the progress has been very good since january and we are getting those receivables down And of course our euro and second denominated credit lines and notes that given the dollar weakness we had an impact of around 40 million linked to that effect. But I have to flag this is unrealized since maturity have not happened yet. Closing with next slide, slide 9 please. The guidance for the year. where we will need to spend our guidance for israeli linked figures the rest of the numbers are pretty much in line with what we had guided earlier in the year in january with the rest of the portfolio of the company still guided at mid 30s 32 to 36 thousand dollars a day Our OPEX, we expect it to stay at around the 190 or the 200 million mark for the rest of the portfolio. Our cash GMA, as you have seen years now, we are pretty much consistent around the 35 million mark. on the capital expenditure we don't expect investment to go more than 100 million and our decommissioning to continue as always guided at around 60 million per annum and a very light exploration expenditure especially given that we are carried to the big wells that matthews mentioned our net debt again this is a very provisional number at around 3.2 to 3.3 as guided initially This is a very odd position to be as a CFO, not provide guidance on some figures. Obviously, we have run a number of sensitivities and I would like to share those, let's call it the soft guidance to our investors and analysts. So, roughly for each month of starting production, you can assume roughly 10,000, 9 to 10,000 barrels a day reduction in the initial guidance. The OPEX line, for the time being, you should consider to be similar, because we're keeping the facilities ready to turn on within 24 to 48 hours, reflecting what Mathieu said, that our expectation is that this is a short-term event. And the same applies to the Catalan CAPEX. For the time being, all projects are on time and they haven't been affected. Of course, we do have the flexibility to postpone that, and we're keeping... um a close eye uh technical operations and hsc of course have the first uh uh you know they will need to advise us on that but for the time being we're on track on all on all our projects so uh back to you thank you let's move to the next slide please