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.

Thank you very much, Akos. Good morning, ladies and gentlemen. So let me elaborate on the first quarter of 26 results. As you have just learned from Mr. Bacha, we face the very challenging times in downstream, but let's get to the numbers. Downstream clean CCS EBITDA was well below last year's and came in at a million dollars for the first quarter of 2026. The other performance was due to a series of shock, which I will then elaborate on them later, that led to lower capacity utilization in refining and the petrochemicals performance Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip In order to provide you a better sense of those shocks and the sequence of those shocks and their impacts on our processing and profitability, we prepare the next slide. So this slide is showing the shocks from four perspectives, so what happens and when, then how it impacted the crude supply processing and also the profitability. So as Mr. Bachar mentioned, The series of challenges started October last year. You are very much aware of it. The pump station of AV3 distillation unit burned down, meaning that the total crude processing of our two landlocked refineries has been limited to 75-80% of the usual capacity throughout the first quarter. Then at the end of January, flows from the Drupa pipeline were disrupted. I have to mention that it was the 23rd disruption which we experienced from the outbreak of the war. And in this particular case, it was the result of the drone attack at the 70,000 cubic meters oil tank in Ukraine. So we have no information on when the pipeline could resume operation. The two refineries ran on their own reserves. Then by mid-February, we initiated the plans to switch to the Adriatic crude supply route and started booking cargoes with deliveries expected to the port of Omishaj by early March. At the same time, we also triggered the release of strategic route reserves in both Hungary and Slovakia in order to keep the operation until the first seaborne crude supplies arrives to our refineries. In this period we although adjusted the processing as a precaution and in order to keep the utilization of strategic reserves as low as possible. By the first food supplies arrived in March, the war in Iran had already erupted and the Strait of Hormuz was already closed. And although it's costly, we ramp up our crude processing in order to supply our customers and to start refilling the strategic crude reserves and our own inventories. In terms of profitability, it was really volatile and under pressure throughout the first quarter. And mainly the impact of low utilization is magnified in financial result as the fixed cost in the refinery were not covered as Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip The operational and technical difficulties are eased and we can get back or we are about to get back to the modus operandi of selecting dynamically between the two available crew supply routes and different crews based on our best interest. So now get back to the normal sequence of my slides. So let's tackle the macro environment please. Thank you. So, brand-based refining margins were about $11 per barrel for the closer figures, pulling the average upwards as a result of the supply shock in European middle-definite markets. However, this attractive margin was unfortunately not reflective of the actual unique profits we could realize. After the Strait of Hormuz closure, the producer asked for a premium to dated brands with volatility in the markets, adding further costs So out of those 12 countries, in 10 countries, there is some regulation there. Petrochemicals Margin have a longer lead time in reacting to these changes, so margins remain subdued in the first quarter. So, looking to the April, the Structural Hormone Shock is more visible, refining margin increase to levels which we experienced last time back in 2022. The Urals Blend was traded at a premium to Dated Brand. This was also for the first time since the Dep India quotations are available. Petrochemicals margin have also increased materially as the closure of the strait has decreased global petrochemical supply directly or indirectly. So in my last slide about the impacts of several factors. So I believe there is no surprise in the light of my earlier comments that the refining margin and price effect was positive but and there was theoretically much more potential there, but because of the aforementioned factors limited the upside of the refining margin closer, close to tripling year on year. Petrochemical also contributed positively on the margin side. The volume impact amounted to over 200 million, negative contribution, which underlines the severity of the financial impact of the landlocked refineries, low infillization, The Rijeka refinery also underwent the planned turnaround during the first quarter adding to the negative volume effect. Within the other factors there is also a negative contribution there due to the base effects as well as the negative contribution of the gas and power trading and similarly negative impact of the hedging activity. This would be everything from my side and I would like to hand over to Peter Aptatic to continue with consumer services. Thank you very much.

Thank you, Gabriel, and good morning to everyone. So the consumer services reached $177 million of EBITDA in the first quarter as it was already mentioned, which is roughly 12% increase year-on-year. And if you look at this chart on the right side, you can see that the year-on-year depreciation of the dollar had a material positive effect on the result. And I also have to highlight that this is just the first quarter, so the Hungarian foreign change compared to Euro and Dollar, that just happened in April. So this first quarter effect is just purely the Dollar depreciation. Without this effect, the EDDA would have grown by 1%, meaning basically a flat year-on-year performance. On a more underlying level, the fuel side of the business contributed negatively to results, with the rise in non-fuel margin having offsetting partially or close to equally this effect. This is not surprising, by the way, if you think through what A range of measures were introduced by the governments across our area of operation in March in response to the crisis in the Middle East. In fact, all countries in our operation, in the ten countries' operation, except Bosnia and Herzegovina, have imposed regulatory measures for the fuel prices. All in all, I mean, it would take like half an hour to go through on the different countries, different regulations. So some of the countries have a hard price cap, like in Hungary. Many of the other countries have a margin regulation, but the frequency of the regulation changes are also different country by country. So during the whole month of March, Actually, we were trying to adapt our operation and the whole market tried to adapt to the operation of the changed environment. So, before we move on to the fuel, just a brief summary for the first quarter. Out of these three months, January, February were practically normal months. The dynamics and the direction, the trajectory of the business What was the effect of that for the fuel? Let's move on to the next slide and you can see that the pure volumes rose by 7% year on year. Clearly a consequence of the mentioned price control mechanism. In fact, looking at the first two months that I've just mentioned, the volumes were up by 1% only, reflecting purely and consequently to the underlying market fundamentals. However, in March, actually, the fuel volumes increased, the soil fuel volumes in our network increased by 18% year-on-year growth, which is, I mean, just in a few countries, this 18% came up just in a few countries, like Hungary, Slovakia, Slovenia mainly, and also in Croatia. The rest of the countries, the increase was a single-digit percentage increase, but still substantial. Regarding the margin there has been a decrease overall with the profitability of fuel retailing falling the largest where the harshest measures were introduced and actually that was in Croatia, Hungary and Romania so in these three countries the impact on our unit margin was the harshest in March and we will see how that will continue in the upcoming quarter. But let's move to the non-fuel part, because the non-fuel part is still the bright side of this whole operation. So the development in the non-fuel part of the business, where there are no surprises and we have continued on the path of this 5% organic year-on-year growth, And obviously in such circumstances what we see that the fewer drives the footfall and our intention and the clear task for us at this current moment that try to convert as much of these new customers to the non-fuel transactions as we can and also to try to convince them to join to our loyalty program. So to gain an additional long-term customers to our operation, once the world will go back to normal, then hopefully our market shares and also the nuclear transaction will land on a higher level than it used to be. So that's our business strategy at the moment. Thank you very much for your attention and let me pass the floor to Jean-Paul.

Good morning. Upstream record $46 million in the first quarter of 26. And this corresponds to a 40% increase compared to the previous quarter and around 10% increase versus last year. So the increase was predominantly driven by higher hydrocarbon prices because of the straight performance closure. And with that, they did increase to $81 per average. And gas price Olaj Es Gazip Transcription by ESO. Translation by — reached $32, well above the $20 per barrel equivalent strategic guideline. If we move to the next on the EBITDA, let us now break down quarter on quarter. You see that it was really because of the higher prices, most of the increases compared to the fourth quarter of 25 is due to the macro. Lower volumes only accounted for $15 million, negative effect that was mainly due to lower production in Iraq, both Shaikan and Pearl, because of the stoppage and the precautionary halt in Shaikan production in March, as well as the technical factor of less cargoes loaded in Azerbaijan. The other category you see on the waterfall had a positive impact Gazip Olaj Es Gazip So the production is lower compared to the fourth quarter, but averaged above the lower threshold of the annual guidance of 95 and 97,000 barrels of oil equivalent a day. So still with the Iraqi Shaiqan and Pearl stoppage and lower production, we are inside the guideline and we are missing around seven, 8,000 barrel of oil production, which we believe if it Magyar Olaj Es Gazip But that's why the production level decreased to 92. What you see in April, but we are seeing now an elevated production going forward. And lastly, let me share a few thoughts on the evolution of the unit OPEX and our investment perspective. So the OPEX rose by 11% year on year. This increase is predominantly due to weaker USD. If we would... Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip and this is largely due to the offshore campaign on the development wells we are doing in Croatia currently and then of ECG CapEx which is coming with the drilling of the new offshore platform. Let me also share that in the time of in Pakistan with the Gaspar project we were able to have a new discovery, Bilitang 1 well which is gross 5,000 barrel well production. We will start that Still this year, and the production is, the share is only 8.4% of ours. This is still a nice discovery and adding volumes to our portfolio. In Croatia, we have also expanded our onshore portfolio to exploration blocks. We are ready to eat now by the hydrocarbon agency, while we have also completed farming acquisition of 10 million remaining 60% share of the Sava 7 block. Furthermore, we have also moved in Hungary and had acquired the range of upstream assets from OGD at the end of April. This acquisition would add almost 1,000 barrel of oil equivalent to our production and to our group oil production primarily. And we see to develop these fields as well with large exploration acreage, mostly oil dominated. And again, let me also finish with the news from Libya. That's a new country entry for Upstream. That was a successful joint bid together with Repsol and GP, where Repsol will be operator into an offshore block in Libya. We have 20% in the joint venture. And with that, I will pass the floor to Joshe Fumola to discuss circular economy.

On a year-on-year basis, this increase includes also seasonal factors such as the higher DRS return volumes and the lower collected waste volumes due to the colder winter, but it includes also the impact of the ongoing efficiency program. Organic Apex was at low level as planned and expected, reflecting our cautious approach for spending. And as discussed last time, the preparations for a waste-to-energy plant to be co-located at our refinery in Sasson, but are ongoing, and currently we are foreseeing the final investment. and decision sometime during this year. As on the general trends on the business side, with the above 90% return rates in the DRS system, we can clearly call it fully operational and completed. We reached this result in shorter than two years and from now on clearly the focus will be on the continuous improvement of service levels and Operational Efficiency. And generally, we will continue to keep our focus on efficiency and financial results in the coming quarters. And with this, I'd like to hand over to Marci for the closing Q&A part of our session.

Thank you very much. So that completes the formal part of our presentation. We'd like to now open the floor for the Q&A session. Please indicate if you'd like to ask a question by using the raise-your-hand function of Teams. Anna, please go ahead with your first question.

Thank you very much for the presentation. I have a couple of questions, if I may. First, starting with April and second quarter performance, given that the flows we started, but at the same time, fuel caps, margin caps remain in place, what level of margin capture can you realize Since 22nd of April, if you can comment. And the same question around the utilization rates. To what extent did you manage to increase the runs? Second question will be around the comments and news flow on the Croatia side. On the one hand, we heard this final award from US court for collection of the award. Do you expect it to happen this year? Do you expect to get the collection this year? Thank you. Thank you, Gabriela.

Yes, thank you very much. Thank you, Aman, for the questions. You can answer the first question. I will answer the first question. So, regarding the utilization and the Drurba supply, so, yes, as I mentioned that from 22nd of April the Drurba supply was restarted and this is still operational. On the other hand, we believe that we will start processing the Russian Repco and Ukrainian crew just Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Thank you. I think especially regarding the U.S. court decision on the international arbitration case, I think we are glad

Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip And the final question about the cash flow. This is a kind of technical item. We need to translate the P&R to the cash flow.

The largest impact was due to the loss on unrealized and well this is how we translate it from the P&R to cash flow and the hedge amount has been considered in the first quarter mainly due to the longer lead times of crude supply as already we discussed and steaming from the switch to the seaborne crude sourcing thank you

Thank you very much. Just a follow-up regarding the margin capture since the Russian fall restart. Do you expect better margin capture in the second quarter from the second half of May?

Yes, sure. But on the other side, what I mentioned, that there are out of the 12 countries where we supply our production, out of those 12 countries, then applied some kind of regulation. So I think that there will be some adjustments there but so far based on the run I am rather positive.

Thank you.

Tomas, please go ahead with your question.

Yes, thank you very much. Good morning. A couple of questions mainly on the downstream side. First of all, when do you expect the agreement with Yanov to be signed? And would this agreement include the usual two, two and a half million tons or higher? I presume this should be higher because in the last two months you bought much more crude via the seaborne route then because, yeah, the route was not available. So when do you expect this agreement? That's my first question. Also, looking now at your presentation that the URA price is above the Brand prices. Do you expect in the future to play a little bit and buy more seaborne crude if this situation persists? Or do you see a better economics on buying Ural crude at the moment? Because now it's not obvious that Ural has a cost advantage versus the seaborne crude oil types. And my third question would be about the strategic reserves. I think you received both from Slovakia and Hungary some strategic reserves. When do we expect them to give it back or fill up the strategic reserves? If I remember correctly, you said last time that the deadlines are September, October. So I wonder how this would look like. And finally, how do you proceed with the upgrade projects regarding the decoupling from the Russian crude oil? I think the original deadline was next year. Do you still see this as a realistic deadline? Thank you.

Yes, thank you very much. So, I will go one by one, but please chip in once you see that I missed something. So, regarding the agreement, very good observation. So, the agreement with the NFT is still not signed. There are still few pending issues there, which are, from our side, rather critical. Now, I don't want to elaborate on those because we are tied with some confidentiality, and I believe that it seems sort of a good partnership. We should not negotiate publicly. But what is very important with JANF, and this is not a contractual term, this is our interest to test the whole system of the crude supply, where we cannot reach an agreement with our fastener operating the Adria pipeline, So we would like to test the whole system while the counterpart would rather test just the partial part of the system. So this is what I also, from my side, this is also a very critical point there. Then the other question. Could you, Tamás, please?

Yes, basically the second question. The second question was that would you buy more crude from the Seabourn direction?

Yes, so now having two pipelines operational, which I believe is a huge advantage currently or benefit, we can optimize based on the economies more. And this is also a good point that the Urals or the Repco is now traded with the premium delivered to India. Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Technical feasibility, we will now use both of those options. The third one was regarding the DCU, am I right?

Yeah, I was actually back the strategic resource. Ah, yeah, the strategic resource.

So, actually, MOL has processed crude from the State Reserve Hungarian State Reserves in February-March in the amount of 134 kp. Slovnaft has processed from Slovakian State Reserves 105. We stopped the State Reserves pumping or utilization in MOL on the 23rd of March and in Slovnaft at the end of the March. In Slovna we already refilled all those 105 kp's, while in MOL we need to refill that until August this year. Yeah. Yes, so the upgrades. So we are starting up the facility. There was a public announcement that the mechanical completion is done. So once fully operational and so far we see that there are no hiccups there. So I think that till the end of this year we will experience higher processing in our refinery in Rijeka, which will be also reflecting in roughly 30% higher diesel output.

I was actually referring to the update of the for the decoupling projects from the Russian crew that you said you would do by the next year so how do you go on with them?

Yeah so it's fully online with the schedule so we are working hard there are some learnings from the recent period how we can operate our refinery fully on seabourn different available crews so From my perspective, we learned a lot and I hope that till 2027 we will be ready to process alternative goods fully.

Thank you very much.

Thank you. Thank you so much for your question. Thank you.

Thank you. Oleg, please go ahead with your question. Yes. Good morning and thank you for the presentation. I have several questions and if you don't mind I'll ask them one by one just because some of them are a bit longer. So starting with the first question, market expects the new government to improve the business climate in Hungary and when it comes to mall, in which business area would you see potential for positive impacts for improvement and what I can think of are the abolishment of the I mean, thanks for the question although you know that

It's very speculative to ask us about the future political economy, so economic politics will bring us and how the political development will affect us, so definitely based on the statements and let us also confirm our understanding that I think normalization and standard solutions that we expect and we hope. Regarding some of the points that you mentioned, I would like to emphasize that the Royalty regime is already cleared out especially in Hungary so after years of special royalties now we have a progressive royalty regime which is I think is mutually beneficial both for EMP companies who are running exploration campaigns helping the production level to not just to practically to a little bit cut the decline but also to Olaj Es Gazip Magyar Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Understood, thank you

And the second question refers to the downstream segment. I was hoping you could tell us what would have been the clean BDA of the segment assuming no disruption to the oil supply via Druzhba. This would allow us to better understand the first quarter developments as well as to make better projections for the rest of the year.

Yeah, I see all of your point, but I'm sorry. I did not elaborate the scenario of having Drusla operational, so I would need more time to get the figure which could help you.

Okay. But the next question, I guess, it's also addressed to you, because I noticed that the webcam margins I'm rather positive about the webcam performance, seeing now the webcam margins.

On the other side, once the world gets normalized again, so there we see that the supply is really robust. And in terms of the growth, Mr. Baca at the beginning mentioned his concern about the growth perspective. And I believe you are also aware of those. So probably the pet care margins will get normalized, which means that they will get to the break-even level or even below.

So, in other words, this almost 600 euro per ton margin in April is still not sufficient.

I said that I'm rather positive. Okay. Okay. Okay.

I see.

All right. But in the long run, I'm worried that it will get back to the top level. Yeah.

Okay. Thank you. Okay. Thank you. And lastly, you mentioned that the negotiations for the acquisition of Nice are ongoing and they're quite complex, but maybe you still can tell us when do you expect the transaction to close? And looking a bit more into the future, can you also tell us if the supply of Russian seaborne crude oil to Nice would be possible or you would have to rely Mainly on non-Russian seaboard.

So let me answer the question. I mean, to this extent I can answer it. The closing of the transaction, I think it's two phases down the road, so I don't want to predict when closing could happen. If you mean when the agreement could be signed, we have a negotiation license till 22nd of May Magyar Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip

Ricardo, please go ahead.

Hi, good morning. A couple of questions on the crude supply. The first one, given just how volatile the first quarter was because of Trishba and then having to access some of those seaborne and the strategic reserves, if you could just comment, what are the major learnings that you had during those weeks? Was that getting access to those seabornes or on the prices? Just how did Maul The second question that I have is, when we look at towards the end of the year, if we assume the current situation remains with some disruptions on the global supply side, and you have your full capacity back, would you expect to have a mix on your feedstock from both Drusba and Seaborn, or would you just go back to how you were operating until last year? Thank you.

Yes, thank you. So I mentioned that there are several earnings. So firstly, the first one, and I believe you also realize that this was the kind of decoupling of the paper and the physical market. So there were really high premiums asked for the physical deliveries of crude oil. And then we even learned that some of the big traders tried to issue kind of tenders. So we got a confirmation for a vessel, then next day we were asked to submit a bid. And so this was the learning there. In terms of the processing itself, so we had our view what kind of crews and crew baskets we would like to process once the drushba is stopped. In terms of this, we did not get all the time those crews or those crews were rather expensive, so we were forced to go for a different crew basket. And in terms of this, I would like to praise the team that we were very agile to select the proper crew basket and we were able to run the refineries and to supply the market. So there was another learning there. The third learning I would share is the backlog of the vessels. So there is some experience that the European refineries book the vessels for a month. In advance the the Asian countries for two months while in the United States is rather very much on time So there was another learning so in case of these disruptions and volatility Probably one month is not sufficient once those elements of extra bidding and problems Comes and the fourth one was with the with the Adria pipeline so we learned that the crews with higher density and the low temperature environment so there could be some hiccups in the system and for this reason we are pushing even more that we would like to test the whole system yeah and regarding your second part of the question what would happen or Thank you very much. Thank you.

Thank you. I see Anna has a follow-up question. Please go ahead.

Yes, thank you very much. A follow-up to Olaj's question. You mentioned which taxes, special taxes, could be, in theory, uplifted or where you see more probability. But you didn't mention windfall tax on euro spread differential. Do you think there is possibility for it to be abolished at some point? And, of course, currently the price and the differential is not there, but in normalized environments.

So, in case, if I may answer, so, in case of the normalized environment, I believe that this differential get back to normal. So, historically, I believe it was around $1 and $2. Yeah.

This is my best guess, yeah.

Probably not that normalized, meaning we will be back in the sanction regime and there could be a bit higher differential on euros again. Do you think with the new government in Hungary, the windfall tax on the difference could be abolished? Or will it stay?

Let me take the question. Thank you very much, Anna, for pointing out. So the Brent euro tax has been extended until the end of 2026. At the moment, this is the information we have. There is no signs, pro or contra, whether the position is going to be changed. On the other hand, as Gerard mentioned, we are all always welcoming the business-friendly environment, but I think down the road, how the government is going to decide, I think this is not to comment by ourselves. But also I think it's quite important to mention that if there is a premium EUR is traded, I think the whole notion of the taxation is questionable.

Thank you very much.

Thank you.

Thank you, and Adam, please go ahead with your question.

Hi, hello. Just to confirm, because... You showed that there is premium of Ural's oil to Brent oil, but it's Indian market. But in the European market, are you paying also premium or there is differential? Because it seems, based on my estimate, that there could be differential. Thanks.

I would not share with you the specific number, but it's heavily dependent. It's a good observation. And I also mentioned that the DAP India has to be adjusted by the different logistics routes. So the logistics costs have a very high impact of that number, which is varying a lot, the logistics cost itself.

Thank you for the question.

Okay, thank you very much, ladies and gentlemen, for your participation in today's call. Please do reach out to Investor Relations if you have anything to follow up with. Have a nice day and thank you very much. Goodbye.