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.