SNGN Romgaz S.A.

Good afternoon, ladies and gentlemen, and welcome to our conference call for discussing the results recorded by Romgas Group in the first nine months of 2025. After introducing the speakers, Ms. Gabriela Trnbicas, Chief Financial Officer, will make an opening speech. Thereafter, the Q&A session will take place. Please be advised that this conference is being recorded for internal purposes. On behalf of the company, the following speakers attend this conference. Ms. Gabriela Trmbicaş, Chief Financial Officer. Ms. Gabriela Mareş, Strategy, International Relations and European Funds Director. Mr. Ion Fojdaş, Production Director. Mr. Radu Moldovan, Energy Trading Director. And our Investor Relations Department. Now I would like to give the floor over to Ms. Gabriela Trmbicaj, who will open the conference call with an opening speech.

Good afternoon, ladies and gentlemen. Thank you for joining our conference call to discuss the results recorded by RomGas Group in the first nine months of 2025. We published today the quarterly report and the consolidated interim financial statements for the first nine months and the third quarter of 2025, which present our economic and financial achievements in the period. Also, an updated presentation of the group is available on our website in the investor section. I will start with some aspects of the gas market context in the first nine months of 2025 compared to the same period of the previous year. Natural gas consumption in Romania advanced marginally by 2.5% to 72 TWh, while gas imports recorded a significant increase of 65%, reaching a 32% weight in the domestic consumption according to our assessment. On the Central European Guest Hub, the average reference price rose by over 30% according to data provided by the National Authority for Regulation of the Mining, Oil, and CO2 Geological Storage Activities. Similarly, we assessed that on the Romanian Commodities Exchange, the wholesale average price increased significantly in the first nine months, the market still having a weak trading liquidity as a result of the current regulation enforced. Regarding the fiscal framework in the energy sector in Romania, wrong use activities continue to be influenced mainly by Government Emergency Ordinance 27 issued in March 2022 and Government Emergency Ordinance No. 6 applied starting April 1, 2025. Let us remind you of the main legal provisions applicable to gas producers. Regulated gas selling price of 120 lei per megawatt hour for the gas sold to households and suppliers of households, heat producers and their suppliers for the production of thermal energy for households and to the transmission operator and distributors for maximum 75% of their technological consumption. This price level is applied until the end of March 2026. For the guests sold at regulated prices, payment of the windfall profit tax is exempted and guest royalties are computed based on these regulated prices instead of CGH reference prices. We continued this presentation by highlighting the operational and financial performance recorded by Rome Gas Group in nine months, 2025. Production of natural gas reached 3.68 BCM, marginally higher by 0.1% year-on-year and overcompensating for the committed natural decline of maximum 2.5%. In Q3 alone, we succeeded to increase our gas production by 0.5% compared to the same period of 2024 to the level of 1.19 BCM. The significant performance achieved in the first nine months was due to the steady efforts undertaken to consolidate the potential of our onshore output, of which I will mention. Continuous rehabilitation projects of the main mature gas reservoirs in order to maximize production and increase the recovery factor. We completed investments in production infrastructure, which allowed us to stream in production five wells. we reactivated a 133 inactive wells through specific investment force with an initial daily flow of over 1.72 million cubic meters in total. Also, we finalized six surface facilities, have six other facilities in execution, another 17 in different preparation stages, and we performed reactivation and capitalizable repairs for a total of 167 production wells. We can also mention that all these measures led to a significant 57% increase in our condensate production to the level of 39,944 tons in the first nine months of 2025 due mostly to higher production in our Calajele commercial field. Regarding Carajela Deep, works are progressing with a 76 Rosetti well preparing for production testing, 54 Damianka well in execution, 78 Rosetti well in production, while 7 other wells are in different stages of drilling preparation. Compared to last year, we improved even more our strong position already held on the Romanian gas market. Our market share climbed to almost 55% of total consumption in Romania and reached 80% of the consumption covered from domestically produced gas, according to our assessment. We recorded total revenues from the gas sold higher by 8.3% year-on-year to 5.25 billion lei compared to 4.85 billion lei in the same period of 2024. This good result was due to gas volume sold elevated by 12.4% year-on-year to 3.63 BCM in nine months 2025 based on net volumes extracted from underground storages and lower deliveries to unit power plant. Revenues from storage services increased by 16% year-on-year to 432 million lei, with revenues from injection services 53% higher. Revenues from electricity declined by 20% year-on-year to 245 million lei, as production of our old power plant has expectedly decreased to 480 GWh in 9 months 2025, still supporting the security of supply in the energy market in Romania. Overall, Rome Gas Group reported total revenues of 6.05 billion lei higher by 7% compared to 5.63 billion lei a year ago, based on the strong contribution of our upstream segment. On the expensive side, we can point out that wind for profit tax decreased by 24% year-on-year to 597 million lei in the first nine months of 2025 compared to 791 million lei last year due to higher gas deliveries at a regulated price. Gas and UGS royalties adjusted by 2% to 421 billion lei. Altogether, the main taxes were lowered by 16% year-on-year and represented an expense of 1.03 billion lei compared to 1.24 billion lei last year, with a positive effect on our profitability. Bottom line, net profit amounted to 2.43 billion lei, elevated by 7% year-on-year, representing the highest value ever recorded over this period by Romgas Group. All profitability rates were substantial, EBITDA margin at 54.8%, EBIT rate at 46.4%, and net profit rate at 40.3%. For Q3 alone, we can underline a net profit of 755 million lei, elevated by 73% compared to 24, being at the highest value ever reported in Q3, as well as the highest net profit margin of 42% ever reported in this quarter. On the CAPEX side, RomGas Group invested a total consolidated amount of 2.84 billion lei in 9 months 2025. Of these, 2.07 billion lei represented the investment of RomGas Black Sea Limited and 732 million lei, the investments made by RomGas alone, mainly in exploration and production modernization. With respect to Neptune Deep, we continue to focus on permitting activities, construction works, equipment manufacture, and development drilling. Our strategic project is currently in the execution phase and progressing according to plan. As a result of these significant developments, RonGas and ONU Petrom are on track to safely deliver the first gas from Neptune Deep in 2027, and the project remains within the budgeted level. Another important objective is the combined cycle gas turbine power plant in Yagon, for which the completion rate was 98% for the overall turnkey project, consisting of the execution of the initial work contract and the execution of the new works contract, and 90% of the last EPC contract. As publicly announced on the Bucharest Stock Exchange, Romge sent a termination notice of the design and works contract to the contractor on September 11, 2025, and the contract ceased on October 13th. Rongas has also taken steps to execute the performance guarantees established by the contractor according to the contractual provisions. The reason for the early termination of the contract was non-execution of the contractual obligations by the contractor, including failure to meet contractual deadlines. Rongas has repeatedly flagged execution delays to the contractor and informed periodically the capital market on the status of the project. Following the contract early termination, Romegas becomes the general contractor, will assign the contracts of essential subcontractors, and will directly purchase the services and products necessary for the testing and commissioning of the plant. Regarding our strategic development, we remind that Rome Gas Board approved the company's decarbonization strategy for 2025-2050 on October 22nd. This strategy was developed in the context of European and national policies aiming to mitigate greenhouse gas emissions. The project was developed with the support of EBRD and KPMG and resulted in a strategic document outlining the company's objectives for decarbonization and transition to green energy. These net zero trajectories shall be periodically reassessed based on technological progress, availability of funding, and the clarity of regulations. In line with this strategy, please recall that on September 9th, RomGas and Electrica signed a memorandum of understanding for the development of green energy production and storage capacities of up to 400 megawatts exclusively through greenfield projects. The partnership represents a step toward diversification and energy transition strategy of RomGas. Another important event is the second issue of bonds under the EMTN program, which was oversubscribed seven times on October 28th. The new 500 million euro bond issue has a six-year maturity and a coupon of 4.6 to 5% per annum. The result of the second bond issue confirms RomGas capacity to access the international capital markets and the confidence of institutional investors in the company's development strategy. At the end of this presentation, I would like to highlight the strong performance recorded by RomGas shares on the Bucharest Stock Exchange. The share price surged over 90% this year due, among others, to the company's development potential, solid position on the market, and good perspectives for the energy sector. With this, I would like to close our presentation, and thank you for your attention.

Thank you. Ladies and gentlemen, the line is now open to take the questions. I would like to remind you that you have the two options to address your questions, either to raise your hand and turn on your microphone or write down the question. Ms. Joanna Andre, please address your question.

Hello. Hello. Can you hear me, right? Yes, please. Good afternoon. Thank you for the presentation and congratulations for the appealing figures. I have a couple of questions. First, if you could please disclose the volumes sold at the regulated price during this quarter. I know it was estimated around 9.5 terabytes, but please, just to be sure. Second, again, regarding the Yernut power plant, It was not clear for me and from the presentation in this point, when do you expect the first production for testing and when do you expect the first commercial production? Third, regarding the decarbonisation strategy, can you please disclose what are your plans for the next five years until 2030? I'm interested about the CAPEX plans related to this issue. And last, regarding the case filed against the European Commission for the pro-rata contributions to the CO2 injections, I am curious, what are the investment obligations of RomGaz until 2030 if you don't receive a favorable rule on this issue? And what are the CAPEX plans if you do receive a positive outcome? Basically, I would like to know what is the CAPEX under the both scenarios. Thank you. That's all from my side.

Thank you for your questions. In Q3 alone, we sold 87.65% of our guests at regulated prices.

87, please. Yes, 87.65. Do you have a figure in terabytes?

Yes. 10.14. There was ours.

Okay, thank you.

Regarding Ernest, as you know, the contract was terminated in October. The contract with the former contractor allowed for the assignment of subcontractors to run gas. We asked the contractor to assign this contract to us to inform us what are the words still needed to be done to complete the project. Unfortunately, the contractor doesn't want to cooperate with us in this respect, so we need to find other legal ways of contracting these words. The site supervisor is working on identifying the works left to be done so that we can start the acquisition process for the remaining works. As we are under the provisions of the public procurement law, the process of appointing the subcontractors may take some time. We estimate that after we have all the contracts in place, it will take around nine months to complete. Okay, thank you. on the decarbonization strategy. I would like to point out that it contains the main framework of the steps to be taken to achieve the net zero target. Our initial, the most important Plan for now is to complete the Neptune Deep project. Afterwards, we will identify the projects that we will perform until 2030. We will have to check the feasibility of these projects, identify the investment plans, and after we have all this information, start implementing them.

With regard to the NZL regulation, as you have probably heard from the press, yes, ROMGAS filed against the commission because we think that the delegated act was not fairly decided. There was no impact assessment on oil and gas producers, which are very much impacted, especially the Romanian oil and gas producers. Of course, we are doing our research in parallel, not disregarding what will happen at the European Union Court of Justice, because we do not know what will happen. In the meantime, ROMGES is assessing its technical potential to... to make possible capacity storage. However, no investment shall be taken, no matter what outcome from the EU Court of Justice will be. Romges will investigate and will only invest in such project if such project will confirm its economic and technical economic and commercial feasibility. Thank you.

So just to be sure, you don't have for the next five years a plan for investments based on this?

Well, there is a plan because the plan, actually the obligation is given to us by this NCR regulation and it means for ONGES to create storage capacity of 4.12 million CO2 per year. The investment associated to this is around 600 million euros. Before investing in such project, we have to do our analysis. And the first thing we are doing now and are currently under the process of evaluating is to assess the technical feasibility in order to use depleted gas fields for CO2 storage. This is where we are now. Analysis are, of course, going forward. And at the moment that such project will turn out to be economic and commercial feasible, of course, we will invest. But if not, no matter if we will win at the European Court of Justice or not, we will only invest on the basis of economic, technical, economic and commercial feasibility.

Thank you very much. And if I may, one more question regarding Gazan Mures. Can you give us an update?

Yes, we are currently in a due diligence analysis. It's approaching its end. We have two consultants in this process. We have a consultant for the technical, economic, and environmental due diligence, and we have another consultant for the legal due diligence. The reports, we expect the first interim reports probably next week. And our plan is to evaluate them and to come with final reports and, if the case may be, with a binding offer by the end of the year.

Thank you very much.

We received a written question from Mr. Adrian Mares. Do you have an estimated finalization date for Yernut Power Plant?

As already mentioned, we have to assign the contracts for the remaining works to be performed in order to commission the plant. It will take some time. We need to first identify the works remaining to be done and then start the procurement process. After we have all the contracts in place, it will take about nine months to complete. We are working with a target of end of next year. However, achieving this target is not entirely under our control.

We received three written questions from Mr. Cristian Petre. The first one would be, can you detail next steps regarding Yernut and what are your expectations for project to become operational? And the second one was related to Azomures and they received previously the answers. And the third question is, can you outline main objectives of the decarbonization strategy?

In the decarbonization strategy, the consultant analyzed a few scenarios. The first scenario was what will happen with our carbon footprint, with the company's carbon footprint, if we do not invest at all, if the emissions will only drop due to the decrease of gas production until 2050. The other, of course, this was just to make a comparison on what there is to do. Then there was another scenario where we also analyzed, let's say, a minimum investment in order to decrease the emissions, envisaging, first of all, to reduce emissions from our own activity, from the exploration and production activity. And then comes the third scenario where we have tried to see what the roadmap will be and what projects we will need to implement in order to get the net zero target by 2050. And the outcome of this third scenario, which we are looking at as an aspirational, let's say, target, is to have to, let's say, to focus on the following type of projects. First of all, of course, we will focus on reducing the emissions from our own activities, which means scope one emissions, by electrifying, by mitigating methane emissions. Secondly, then we are looking to the new technologies in order to make the green transition possible. And these type of projects include, first of all, the RESS, wind and solar plants. Then the second would be the CCS, which as mentioned before is a regulatory obligation. Then we are looking also at the possibility to have green hydrogen production and biomethane production. And you can find the summary of the decarbonisation strategy on our website, and there's a good presentation there where you can see the percentages of investment for each of these technologies. However, I remind you that this third scenario, the net zero scenario, is for us an aspirational pathway. But each and every project is firstly analyzed to see the feasibility perspectives and the potential of implementation. As we speak, what we plan in this decarbonization strategy has a degree of, let's say, uncertainty regarding regulation, financing, the evolution of technologies, which are at a very early stage right now. Depending on these evolutions, of course, the strategy will be periodically revised and reanalyzed. And in parallel, the projects also, each and every project will be analyzed to see if it has a feasibility potential.

Thank you. We received written questions from Mr. Jornay Marius Calin, the first one. Can you provide details on the memorandum with Electrica implementation time? What will be the company's financial contribution?

The memorandum assesses a framework under which we will work with ELECTRICA to develop the greenfield projects envisaged. ELECTRICA must first identify the project, run feasibility tests. Until now, we were not informed of any project being selected. The contribution to the projects will depend on on the actual projects being presented to us and whether they are feasible for us.

The next question is, can you provide news on the next projects ERP retail clients invoicing, procurement and the 40 megawatt photovoltaic park?

Regarding the ERP, currently we are developing the platform that will facilitate the relationship with the clients in this new market. Aside from this, we are also having discussion with the banks and payment processors to implement online payments that will be embedded into this platform. Also, we are running acquisition procedures for other software that will be needed in this activity for online contracting, call centers. So specifically regarding the ERP, we estimate that by the end of this year, it should be operational. However, until we actually access the market, there are still other steps to be taken. So we estimate that the first deliveries will only start in April. on Azamoresh, we already provided an answer. We are currently in progress with the due diligence process. And on the photovoltaic park of 40 megawatt hours, we still haven't assigned the contract. The acquisition procedure was selected for review by the National Agency for Public Procurement. This is a standard procedure. They randomly select some acquisition procedures, but this review has delayed the awarding of the contract.

The next question from Mr. . Do you envisage better results on the electricity production side after elimination of the cap in July 2025?

Results on the electricity segment were fairly similar to Q2 2025. So in Q2, we had a loss of 93 million lei. In Q3, we had a loss of 96 million lei. the evolution as i said is um Pretty similar. On the liberalization of the prices of the market, we sold at free prices even before the liberalization. The mechanism for centralized acquisition at which we sold under that regulated prices of 400 labor megawatt hour was optional in 2024 and 2025, so we didn't apply it.

The next written question from Mr. Oleg Galbur. Can you please comment on the results of the power segment in Q3 2025, which were slightly worse in comparison to Q2 2025, despite the end of the electricity price regulation? What has led to a higher loss of the segment in Q3 2025?

In Q3 2025, the plant was stopped due to breakages of the old plant. As such, we had to purchase from the market the electricity that we contracted for our clients. So in order to meet the delivery obligations, we had to purchase from the market the electricity that we couldn't produce.

The next written question from Mr. Chornei Marius Calin. Can you please tell me the value of your investment in Neptune Deep project?

Do you mean the investment for the entire project? The investment in this period? Not sure.

The next written question is from Mr. Ole Galbor. What is the volume of gas assigned to be sold by RomGaz at regulated prices in Q4 2025 and Q1 2026?

In Q4, we estimate we will sell 10.6 in terawatt hour, and in Q1 2026, 9.67 terawatt hour. For the full project, the investment is estimated to cost 4 billion euros, of which our share is 50%, so 2 billion euros.

If you have any other questions, please feel free to address them. We received a written question from Mr. Thomas Pletcher. Hello, will you consider to buy electricity from the market in the future to meet client's needs similar to Q3 2025?

Normally, our current strategy is to only sell the electricity quantity that we produce. If the plant breaks down suddenly, then, of course, we will have to buy electricity from the market and meet delivery obligations. But it's not something that we want to do.

We received another written question from . Were the technical issues at the power plant solved? Is the plant now up and running?

Yes, currently the plant is running.

Another written question from . Do you intend to have other issue, bond issues in the next two years?

Currently, based on our existing projects, we . already covered the finance needs for next year. However, if some unforeseen projects appear or depending on the situation in the market, we may issue another bond under the current EMTM program. As you know, we already had two issues of 1 billion euros out of our 1.5 EMTM program.

If you have any other questions, please feel free to address them. We received a written question from Mr. Cristian Petre. The 2.76 billion euro in the decarbonization strategy includes the 600 million you mentioned for CCS?

Yes, they include it.

If there are no further questions, we will conclude this conference call. Thank you for your questions. If you need further information, please contact our investor relations team. The conference is now concluded. On behalf of Romgas team, thank you for attending today's conference call.