Mol Magyar Olaj Es Gazip

Good morning, ladies and gentlemen, and welcome to MOLS Q1 2026 Results Conference Call. I am Márton Teremé, Head of Minimum Investor Relations. The speakers on today's call are Dr. György Batça, Chief Strategic Officer, Dr. Árkor Székely, Chief Financial Officer, Mr. Zsombor Marton, Executive Vice President of Upstream, Mr. Gabriel Szabo, Executive Vice President of Downstream, Mr. Péter Ratatich, Executive Vice President of Consumer Services, and Mr. József Simola, Executive Vice President of Circular Economy Services. Before giving the floor to Mr. Bacsa, let me remind you of some technical details. We continue to use Microsoft Teams as a platform to hold our conference call. The presentation is accessible at our website at mo.group.info and slides will be shared in Teams during the call. There will be a Q&A session after the presentation where you will have the chance to ask questions by using the raise your hand function on Teams. Please keep yourself muted throughout the call, except when asking a question. I would now like to draw your attention to the cautionary statement on slide number two. And now we can start the content part with Dr. Gerald Basha, taking us through the highlights of the first quarter.

Good morning, everybody. Thank you, Nathan. So, let's start with the first quarter summary and go to page number four. Let me start with the annual guidance. If I want to be short, I would say that we didn't change the guidance, but let me take some more minutes to go a little bit of deep dive, because I would like to remind you that when we issued the guidance, that was the presentation of our fourth quarter results of last year, Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip In March, the conflict of Iran and the closure of the Strait of Hormuz have brought unprecedented volatility and fragility to the crude oil supply, especially to the seaborne supplies. There was also government interventions. Say for two markets, all core markets are affected, some sort of government regulations, price caps, margin regulations. which are not just affecting practically our margins and our pricing abilities, but also the moving of goods and the free movement of goods between our market, between our refineries and between our wholesale storages. I think what we are heading into that, especially in this energy shock or this war that caused the energy shock, with Dragon, that we're practically heading into a perfect storm, which was also, I would say, highlighted and emphasized by the latest IMF report as well, which is forecasting, in such a reverse situation, historical low global GDP growth. I would say that such an outlook would not give us anything else, just to stay cautious and definitely consider all these risks are very serious, and the blow-up A plan how to manage this risk. And now let's go into some of the key ones which are specific to more. The disruption in the Druzebo pipeline. The disruption in the Druzebo pipeline, I would say, and we emphasized several times, that we are preparing for that. We were preparing for that. We didn't expect that it would happen. But in the last decade, just an example for that, we invested into the pipeline network more than $300 million. to diversify our crude supply system. And I think the first quarter just strengthens our belief that the region needs at least two open, accessible crude supply routes to ensure uninterrupted fuel supply for the CE region. And it's also our business interest, our business session as well. We need to safeguard our ability to always make the best business decisions. And I would also emphasize that all diversity routes Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip and the consumers were protected against this volatility with the price controls and the government's mechanisms. But we were not protected on the supply and on our logistic markets against such priorities, so it negatively affected our performance, especially in the downstream. So let's go to the page number five. So if you look at the first quarter results, as you can see that our first quarter, Team CCS EBITDA came in at Olaj Es Gazip We suffered greatly due to the multiple shocks and the volatility, its financial impact and the significant operational challenges that we are facing with. So, our downstream clean CCS EBITDA decreased to $69 million. Our circular economy service EBITDA was driven by seasonality and reached $21 million. Our consumer service EBITDA increased to $177 million. and upstream EBITDA rose to $346 million. The topic will give you more details on the financial performance and the drivers behind the financial performance. As I mentioned earlier, the Zuzba pipeline was not functioning for 10 weeks, and during which the Bratislava and the Danube refinery had to switch to seaborne crude supplies from Russian origin. We derivated by the Adriatic pipeline, but I also have to mention that the Danube refinery has lost Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip

and the segment breakdown. The Clean CCSM video reached 626 million US dollars in the first quarter, as Lior said, a decrease of 75% year-on-year. With the EVPs to discuss their respective segment performance in detail, as usual, I will elaborate on the segments which fall outside the scope. First, the GASMI stream. The EVDL came at 93 million US dollars, which represents a year-on-year increase of almost 40%, 39%. The reason is that the transmission volumes were flat, but the high cross-border capacity demand was substantial due to the relatively cold winter, as well as favorable effects supported EVDL generation. The second, regarding the corporate and other segments, the central cost of 62 million US dollars were broadly in line with the season leverage and also with the dollar weakening, explaining much of the year-over-year increase. And finally, the intersegment elimination had a negative effect on EBITDA of 28 million US dollars. Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip The base was, in the base period, was relatively slow, you know, comparing to the historical figures. Therefore, I think this figure kind of getting back to the normal range. Some words about the details. The growth and efficiency of COPEX grew by close to $70 million and amounted to $180 million in the first quarter. Rijeka refinery investment was finished and invoices were settled. Also, an uptake in field development works in upstream and in Croatia and offshore assets also contributed to an increase, as did the construction in product pipeline works between Bratislava and Danube refinery. The next category is the Inorganic Apex, which amounted to $241 million and was driven by the closing of the acquisition of the Photovoltaic Portfolio in Mezőcsád, Hungary, with the SPS signed in December 2025. The solar portfolio has a total capacity of 304 megawatts and is expected to generate around almost $40 million, $38 million of every day per annum. Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip The Clean CCS effect showed a positive impact of $47 million in the first quarter, which was in line with the effect of increasing oil price. The positive CCS effect was supported by the seasonal cleaning of CO2 costs, while limited by the adjustment for losses on commodity hedges. The next is the DDNA, which reached $417 million in the first quarter of 2026. This means a year-on-year increase of 23%, driven by the dollar depreciating by over 10% in the first quarter of 2025, and the higher depreciable assets of the group, most notably upstream assets acquired or activated last year. With the foreign depreciating exchange rate volatile during the quarter, the financial line was negative to results, and let me stop here and recall a couple of figures, because yes, there was a huge volatility. In the same period last year, the dollar foreign exchange rate was 371, which decreased to 328 in the last quarter of 2025, and after that, Olaj Es Gazip which was also 385. So yes, there was a huge volatility and this was especially seen in dollar hoof ethics. The income from Assisi was $35 million, mainly given by one of revenue from Pearl, compensating for earlier inaccuracies in measurement of personas. This one-off effect amounted to $17 million. And finally, the tax expense. Gazip Olaj Es Gazip Olaj Es Gazip Olaj Magyar Olaj Es Gazip Regarding the inventories, there was a build that amounted to 900 million dollars, roughly 900 million dollars for the group. The time between receiving the crude oil at the port in Omishai in Croatia and the start of processing became longer as a result of the more cumbersome logistic and planning, leading to an increase in crude inventories. Regarding fuel products, Magyar Olaj Es Gazip I think it's worth to mention that the net working capital position was also worsened by the advanced payments, made the secure crude cargoes and also effect of higher margin deposits and more extensive hedging transactions. Overall, as a result of these factors, operating cash flow including working capital reached over half a billion dollars in the red and you know, just a Highlighting again, the inventory effect amounted to around $900 million, the advance payment around $100 million, and the margin called deposit roughly $300 million, dollars which finally resulted in $1.4 billion increase. Finally, let's look at the balance sheet. The net debt level deteriorated by over $1 billion compared to during the quarter, which reflected in the challenges in the operational cash flow, especially in the working capital cycle, which we discussed in details. Net debt thus closed the quarter close to one times a week there, with the giving ratio rising to 17%. While the increase in the net debt We could clearly see our expectation is that some of the factors leading to the cash drain in the first quarter will just not be with us going forward. Most of the time, the flows resuming on the Druze pipeline system should be able to release some of the working capital that build up during the first quarter. While cash flow and working capital is definitely under higher management focus than usual, The balance sheet remains strong with the available liquidity of around 4.3 billion US dollars. And after the financial overview, I would like to hand over to Gabriel to discuss the downstream results.