Mol Magyar Olaj Es Gazip

Good morning, ladies and gentlemen, and welcome to MOL's second quarter 2026 results conference call. I am Márton Teremé, Head of Investor Relations. The speakers on today's call are Dr. György Bocsa, Chief Strategic Officer, Dr. Ákos Székely, Chief Financial Officer, Mr. Zsombor Marton, Executive Vice President of Upstream, Mr. Gabriel Szabó, Executive Vice President of Downstream, Mr. Péter Ratatich, EVP of Consumer Services and Mr. Csaba Bozóki, Director of Institutional Waste Management at Circular Economy Services. Before giving the floor to the speakers, let me highlight some technical details. We will use Microsoft Teams as a platform to hold our conference call. The presentation is accessible at our website at molgroup.info and slides will be shared in Teams during the call as well. 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. Very important that 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. George Butcher. Taking us through the highlights of the second quarter.

Good morning. So let's start with an overview of Moorbrook's results. Broadly, we have seen increasing volatility in the environment, which eventually resulted in an outstanding market environment, especially for the upstream and downstream sectors in the oil and gas business generally and in more regions specifically as well. The group clean CCS Evida reached nearly $1.3 billion in this quarter. It's heavily supported by the elevated oil and gas prices, and it's represented or it's reflected in the upstream and the downstream results, also in the margins, which touched in several product lines, historical high area. The results were also helped by the resumption of crude oil deliveries to the Tuzla pipeline system at the end of April. We, however, face Olaj Es Gazip Olaj Es Gazip In respect of the retail segment, however, the region is shaped by price controls, governmental interventions, and definitely a constant situation on the retail margins, and of course, security supply issues, which is not only just the pricing, but also the summer prices. Magyar Olaj Es Gazip Magyar Olaj Es Gazip Giorgos Tsiprasakis General License for the for negotiation and closing the deal but we concluded the Serbian government now the full package of our shareholders agreement which is practically a precondition to the to the transaction itself formulating a joint venture with the with the state with the host country with the seller we also reached a very close to final position we submitted all the documents to offer and now we are waiting for the execution license of course for execution Olaj Es Gazip that happened last year that we also reported that we received the first sense of compensation from the insurance company at the magnitude of 100 million U.S. dollar. Regarding the shareholder structure of MOL, two developments during the summer. More New Europe Foundation was dissolved, and the 10.5% shareholding will be returned to the funders, so mainly half of it to the state, half of it to MOL treasury. The Matthias Corvinus Corrigan Foundation shares will be transferred to the Hungarian state. The Corvinus University Foundation is still working and according to legislation, 27 September, the foundation model is kept for the universities. Finally, we just announced last week that we signed an SPA with Shell to acquire BGC Cyprus LTD, which holds 35% non-operated interest in the Cyprus offshore block 12, Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Thank you, Gerg. And good morning, everyone. Gazimistrim Gazip Olaj Es Gazip Regarding the corporate and other segment, please note that the last year's figure was impacted by the one-off account effect of the Technical University of Budapest transaction, mounting to almost 100 million, 98 million US dollars. In the second quarter of 2026, central cost of 40 million US dollars were broadly in line with the quarterly average. And finally, the intersegment elimination, This had a positive effect of US$41 million, mainly due to the lower oil price, resulting in a positive EBITDA inventory elimination, as expected. Organic capex amounted to US$592 million in the first half of 2026. This translates to a 33% increase year on year, which rather reflects Magyar Olaj Es Gazip Klaine CCS Abid Dea Amounted to $1,923,000, almost $2 billion in the first half of the year, which resulted in the net income of $908 million. Regarding the components of the bridge, let's see the details on the next slide. As usual, we are starting with clean CCS effect. It showed a gain of $177 million in the second quarter with most of the positive effect came from operational commodity hedging results amounting to higher than usual gain due to the declining commodity price environment. But we invested into the margining in Q1, we came back into Q2. DDNA. Amounted to $472 million in the second quarter of 2026. This means an increase year on year and quarter on quarter, which is due to the asset impairment amounted to $47 million. The impairment happened due to the need to reflect the depreciation in the fleet management business we have. So it reflected in the balance sheet. which currently records our interest in the fleet management business under the category of health for sale. While the Hungarian foreign market a massive appreciation during the quarter, the expense on the financial line was rather moderate at $24 million. Income from associate was $22 million, with incomes from interesting companies operating in coal-mode field, the Azeri pipeline company BTC and the Kazakh gas field counting to contribute the most. Tax expense reached $154 million, translating to an effective tax rate roughly 15%. This is due to two one-off items impacting the tax plan positively, leading to a better profit after tax. The first is a revision of local tax in the circular economy services that had $23 million effect. and the second is the deferred tax. The deferred tax expense decreased substantially largely due to an accounting technical reason. Effective tax rate assumption used for the valuation of our Hungarian upstream, mainly Hungarian upstream relevant deferred tax assets were revised after the transition to the new holding structure in April. This leads to a decrease of deferred tax assets by roughly 64 million dollars Adjusting for those one-off effects, tax expenses would be $87 million higher, and the effective tax rate would have been around 24%, much closer to the long-run average for the group. Let's move to the cash flow. The cash flows for the first half of the year reflect the favorable trends as well as the volatility of our operating environment. The operating cash flow before the working capital came in at a healthy $1,898,000,000, almost $2 billion. Networking capital, however, marked a build over $1.5 billion. Let me remind you that the first quarter showed a working capital build of close to $1.4 billion. So the change in the second quarter was rather really positive in terms of cash flow. to the tune of $242 million. Why was the release of Q2 small relative to the building Q1? Well, although some of the one of pressures leading to the working capital building Q1, namely disruption, extreme high crude oil price environment eased in Q2, effects leading to the buildup receivables also had an effect. Looking at the net working capital from the first half of the year amounting to $1.5 billion, the inventory volume effect was broadly neutral by elevated prices that roughly $700 million effect on working capital. Around $300-400 million is due to the seasonal factor, as I said, especially reflecting the higher trade receivables. Overall operating cash flow, including the working capital, reached $760 million. Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip With the dividend payment, however, we expect to see an increase roughly 0.2. This is yet to come when the dividend is going to be paid out. Overall, the balance sheet of the group remains really robust. The indebtedness as well as the available liquidity level of around $5 billion Thank you very much. Good morning, ladies and gentlemen.

Before reporting the business performance, I would like to address the accidents we reported at Steam Cracker 1, as Mr. Basa mentioned. So on May 22nd this year, actually 8.36 in the morning, during the startup of the Steam Cracker 1 unit, an unexpected operating condition appeared, so equipments were were exposed to the temperatures beyond their design limits. This led to the pipeline rupture, hydrocarbon release, and resulting in explosion and fire. The incidents resulted in non-facility, as it was mentioned, and there were nine injured colleagues, and also extensive damage to the process equipment was reported. The injured colleagues are safe at home and recovering, We provided for all the personnel, so to the injured colleagues and also to the indirectly infected colleagues, mental and recovery support and also target actions took place on the production side to professionally manage this crisis situation. This major and sad incident has triggered serious investigation and revealed gaps in both asset and organizational operations. As a learning and response to it, a massive process safety program has been launched for gap closing, not just there at the FinCrackle 1, but across small group. Process safety will be strengthened across the whole downstream, across the board. By enhanced risk analysis, asset improvements, where needed also design improvements, training program, internal academia is going to be revitalized. Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip The unit is unlikely to be started up this year, so expected startup is either Q1 or Q2 next year. This is heavily depending on the long-link item deliveries. Financial effects are dependent on the macro environment, but as we'll learn in a few minutes, taking into expectation, taking into consideration, sorry, the current macro environment, the expectation is that it won't be material. But after the closure of Q3, then I will be able to share more because then we will have hopefully the AV3 unit in South Salombata Refinery up and running, and we will see what kind of impact the steam crafter one shutdown will be. So now let me turn your attention to the first slide. So at the latest meeting, When we discussed the Q1, you might remember that I referred to the first quarter of the year as a perfect storm for downstream, with the most prolonged Rurba destruction ever, almost half of the capacity in our Hungarian refinery down, and the havoc in crude and product markets due to the board conflicts in the Middle East and Eastern Europe. So all those impacts our results unfavorably at the same time. Nothing reflects the current volatility in the oil and gas industry better than comparing it to the second quarter, where the impact of the operational and macro environment was totally different, and Downsing could reach a Clean CCS EBITDA amounting $679 million. These results were supported by better performance in both refining and petrochemicals. 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 Now, let's look at the macro factors, which were the main triggers behind the development of our Q2 results. So, looking at the rep margins, they were about $220 per barrel for the quarter, supported by bottlenecks in Europe due to the conflicts in both in the Middle East and Russia impacting product markets more intensively. Although euros were traded at a premium, as you can see, Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Take a look at my last slide. So, habitat change decomposing is clearly seen and you can read it based on my comments. So, the margins environment was decisive in explaining the year-on-year increase both in the refining and the petrochemical side. Volumes contributed negatively, as you can see, by over $200 million in line with the rule of processing and sales activity during the quarter. With that, let me hand over to Peter to comment the consumer services financials. Thank you.

Thank you, Gabriel. Good morning to everyone. So the consumer services IDD amounted to $190 million in the second quarter. A 23% decrease year-on-year. Looking at the waterfall chart on the right-hand side, it's quite clear what was the main cause of this result. The fewer-prices environment drove the negative year-on-year change, contributing close to $60 million to the fall in the results. Our estimate shows that this full difference or even more than this amount is fully attributable to controls on the retail prices by the governments. The first one that we have been using this environment to acquire new customers by leveraging our brand and network size Since the prices are equalized on the discount network and the premium network, more and more customers are turning into our shops and trying our services, which we really believe that some of them or majority of them hopefully will then stay with us on longer term too. The second, the non-fuel part of the business, which is still expanding both sales and margins. And the third one, that the simplified pre-cash flow level on consumer services is still very, very positive. Let's turn the page to the next one where you can see deeply the fuel margin or the components of the fuel margin. You can see that all in all our total volumes rose by four percent year on year which is again the results of the mentioned price mechanism of the government interventions which would be very hard to explain in one or two minutes since Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Magyar Olaj Es Gazip So it's kind of a chaos. But obviously the fuel unit margins are showing a different trend compared to the volume trends. But I really hope that in the upcoming period it will somehow stabilize. Now we can turn to the next slide, to the non-fuel part, which is more stable and solid, more resilient to the I think the fundamentals are quite solid and stable. Year-on-year dynamic of the growth is also quite robust. You can see that the turnover cost is increased by 5%.

by the margin overpaced this cross working together with six percent so thanks very much for your attention and let me pass the floor to Jean-Paul thank you good morning everyone so the upstream bid amounted to 375 million dollars in the second quarter of 26 marking an increase of eight percent compared to the first quarter Hi. Our hydrocarbon prices had a positive effect on the results as average crude oil and gas quotations rose by 28% and 13% respectively compared to the first quarter. On the other hand, one of items had an overall negative impact on our results to the tune of $34 million, which I will discuss shortly in detail. So with regards to the unit economics, that reflects the favorable price environment which we were able to harvest. The average price is reaching $93 in the second quarter and superfine fixed. The EBITDA change in volumes contributed negatively As mentioned to you, at our latest call in May, the Iran conflict affected the production in Iraq and was the main driving force in the negative volume contribution. And then the other category had a higher than usual negative impact of $34 million, quarter on quarter. And there are two factors behind this. One is the claim on receivables on earlier royalty payments. in 2023 for which impairment was recorded in line with our group accounting policy. This had a pure $21 million effect and the rest of the changes, the underperformance of the oil field services units, which is primarily due to different work program scheduling. And this is expected to be temporarily as a timing effect. So year on year, the drivers of changes were rather similar. So if you move on regarding the evolution of the production volumes, we managed to keep the production rate flat on the group level above 95,000 barrels per day in the second quarter. And again, just let me reiterate that due to the Middle East conflict, the field in Iraq was shut in for most of the second quarter and using volumes amounted to 2,500 barrels per day. This was made up by higher production in Hungary. Azerbaijan and Pakistan. Mid-July, the re-emergence of hostilities in the Middle East led again to a temporary shutdown of Iraqi assets and production decreased to 92.9 thousand barrels of oil equivalent per day, while the production of pearl resumed on 28th of July. The Shaikhan is still remains shut in, weighing on August production figures as well. Let us move to the evolution of OPEX and our investments. So the unit OPEX increased by 11% year-on-year on group level. This is due to weakening of US dollar while the missing production of the Shaitan field also had some cost increase effect on unit, on a per barrel basis on the unit OPEX. And turning to the COPEX, the spending increased by $52 million year-on-year in the first half of 26. English was driven primarily by ACG in Azerbaijan as well as continuation of the Croatian offshore development program. Finally, a few updates with regards to the inorganic expansion. So in Central Europe, we have made moves in the past month to expand portfolio both in Croatia and Hungary. Croatia to exploration blocks were awarded to INA and we also completed and closed the farming of Vermilion's remaining 60% share in the FRAVA7 block And furthermore, we also moved to expand our EMP portfolio in Hungary. So again, a C transaction acquired, a range of upstream assets from OGD at the end of April. This acquisition would add around 900 barrels of oil equivalent per day production to the group, and we see high potential to develop these fields and increase production further in the coming years with potential exploration acreage. As an update to our earlier announcement, we have signed PSA with consortium partners Repsol and Turkish Petrol in the 07 block offshore Libya mid-June. And finally, let me also discuss another key transaction in the Mediterranean we signed just last week with a little bit of more detail. So, as we informed you, last week we signed SPA with Shell to farming into the Aphrodite grass field offshore Cyprus. and although the transaction is not closed yet, if it is finalized, we believe that this is a major strategic step for more EMP. We have been several acquisitions in the past five in some of the very macro fields we operate. have been depleting nonetheless. So the TUPE reserves, they have increased by around 15% in the last five years since the end of 2020 when we acquired the ACG. And now it is around 300 million barrels of oil equivalent. So the best estimate of the total contingent resources at the Aphrodite field is around 640 million barrels. Again, this is gross total volume. This is before the host country share deducted because it's a production sharing contract. But we just wanted to demonstrate the magnitude of the acquisition in the field, meaning that the 35% stake will be material still addition to the group's reserves after the FID. So again, this is fully in line with our strategic ambitions as reserves replacement has been an explicit strategic goal from all upstream. and our expectation is that the Aphrodite transaction is a part of the solution to secure upstream and we can still grow beyond 2030 as well. Again, the Aphrodite Gatsby ticks a lot of boxes on our strategic agenda. We always reported to you that we are looking selectively and with a very focused approach into opportunities and this is one of that becoming the reality. Gazip is a giant deep offshore gas field, one of the largest discovered but undeveloped gas field in the European Union with a world-class operator Chevron. And we also see East Mediterranean becoming a gas hub for not just production but potentially export as well beyond 2030. So although the project is still in pre-FID phase, the reservoir is well appraised and the monetization negotiations are also well underway. Again, the FRI transaction also fits well into Mall Group's financial headroom. Financial risk is moderated by the contingent payment structure of the transaction with Shell. Most of the aggregate purchase price dependent on key project milestones coming together in the next five years. So together with the CapEx, our estimate is that the project will burden Mall's cash flow by around $2.2 billion over the course of the next five years. and which is comfortable in light of the group's current strong balance sheet. And now with this, let me pass the word to Csaba on the Circular Economy Services financials.

Thank you, Rombor. Good morning, everyone. Circular Economy Services delivered on a bid day of U.S. Day 16, Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip Olaj Es Gazip The efficiency program launched last year is continuing to deliver tangible results through improved operational performance and cost control. And third, it is important to note the seasonability of the business. The first half of the year is typically characterized by a more favorable earnings profile than the second half. Turning to investments. Magyar Olaj Es Gazip If that, let me hand over to Márton.

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

Thank you very much for the presentation. A couple of questions from my side, starting with the water levels. Can you please let us know what impact would you expect on the financials, both from the lower water levels, but also because you are cutting the electricity consumption during the peak hours? My second question would be around the Aphrodite gas field. And you mentioned that the payment, the deal payment structure is contingent on the achieved milestones. Can you quantify what drag on the cash flow do you expect next year? So what would be the portion paid next year comparing to the remainder? And the final one would be around the guidance. You did not include the guidance side this time. I assume that's because of the volatility, but maybe you can comment on the second half outlook and what are your estimates there. Thank you very much.

So, Gabriel speaking, so let me address your first part of your question, so regarding the dynamic level. And I would like to address the whole heatwave situation and the impact to our Translator's Note First of July, when the Prime Minister Peter Magyar visited our refineries out of Lombardia, we will contribute or we can contribute up to 65 megawatts to reduce the consumption or the impact, total impact will be 65 megawatts. So it will be done in two ways. So it can be done in two ways. So one is to reduce the consumption of electricity. This is done on the units which are not affecting our fuel production. So I do not assume that there will be any material impact of it. So this is the first side. The other that we are also able to run our own gas turbine and with this to help the supplier flex to the market. So all in all, the impact can be once triggered, it can be more than 60 megawatts. regarding the heatway and the operation. So, definitely impacting all of our personnel and assets. So, of course, if you would like to keep other personnel safe, protected, but also engaged. So, there are plenty of measures being implemented regarding the effect of heatway on assets. Our downstream production operation in extreme ambient temperatures is being continuously reviewed. The good news is that we have rapid water intake system at our production sites which provides stable operation even at these lower water levels. In particular, the Danube Refinery, which is the most vulnerable, we have installed mobile pumps to the Danube River. With this improvement, now all production sites can tolerate further 1.5 to 2 meter lower water decrease. Generally, the high temperatures do not have any bad negative impact to all technologies. So, actually, the energy, specific energy consumption is lower. but of course there are instruments and electronics where higher frequency of small malfunctions is experienced. What is the impact? We see some negative impact. This is mainly on condensers or heat exchangers where heat and quality parameters has to be carefully observed. So I believe we can manage the situation without a material effect, to answer your question. But of course, we have to be very cautious and we are monitoring the situation carefully. Thank you for the question.

So with regards to the Aphrodite payment structure, that's a detail I cannot fully share with you, but what I can share is that the majority of the agreed maximum 720 million purchase price is contingent on the key project milestones. What I can share is that we see realistic final investment decision in 27 and first gas in 31. And we see that these payment structure enable in line with the project , so it will help us to see the project progressing while the transaction is closed.

Thank you. And finally, regarding the guidance, yes, General Director General Director General Director Olaj Es Gazip Gazip Gazip Gazip for energy and fuel for their economies and countries and also trying to minimize the price increases or practically a little bit counterbalance the price increases, which is definitely not a political logic, but it has economic effects. We experienced it during COVID, we experienced it in 2022, so it can have also major impact. Olaj Es Gazip Olaj Es Gazip A lot of unpredictability and a lot of volatility. But otherwise, as you could see, now the supply security is a primary target for every country and it has a lot of costs that will slow down economies. So I think how fast economies Yes, good morning and thank you for the presentation and congratulations on the results.

I have three questions. First relates to the consumer services. You mentioned that the segment's results were impacted by price and margin caps in various countries. Could you please help us quantify the impact in Hungary and other markets with material impact? Also, please update us in which countries these price and margin caps are still in place in the third quarter. Second question relates to refining, and more specifically to the shutdown and repayment of AP fee unit. Could you help us quantify the lost earnings due to the unit closures at the beginning of this year, or at least provide a hint how could we estimate the magnitude of the compensations that more could receive from the insurance? And lastly, I'd like just to listen to your opinion about the hedging of gasoline and diesel tax press. Do you have any hedges in place? If not, would you consider hedging as part of the production in general? What's your view on this topic? Thank you.

Thank you. Let me start with the consumer services related mainly around the regulation question. So at the moment regulation is in place in Serbia, in Romania, in Croatia, in Slovenia, Bosnia and Montenegro. As far as the magnitude or the impact Thank you.

What I'd like to understand maybe more is what level of impact should we expect in the third quarter because my understanding is that some countries have changed the regulation or if the main impact comes primarily from Hungary then would you say that it's fair to expect comparable level of impact on the third quarter results?

Look, I mean, I understand your question, but I don't have the crystal ball. And if you can kind of make an assumption for me that what will be the for-broad diesel and gasoline prices in the upcoming two months, then I can probably have a better judgment what the politicians will might think that they need to intervene. uh so it's it's it's very hard to to really kind of answer to this question but uh but but still if i would like to give you some guidance on this then i rather would say that much probably after this season uh the the the demand and those the demand for the for the petroleum products But also the maintenance issues and hopefully the logistic issues on the river because of the low water levels will somehow ease up the situation and then we can get back to a bit of a normal price levels and once the price levels get a bit kind of lower compared to this very very high level that it was in the recent days Thank you, this is very helpful. Yeah, so let me answer your second question or part of it. So regarding the AV-3,

So we are following our initial schedule for reconstruction. So far there is no delay reported. So planned completion and startup is end of September this year. All the major equipment has been already installed. The technological piping, the instrumentation and the installation works are currently ongoing. So they are in progress. and after completion of the installation works, we will start the system checkups or the testing with the nitrogen and then hopefully we will start the unit up in September. Regarding the financial impact, so you might know that the AV3 capacity is 10,500 tons per day, so of course you can multiply it by a factor. I would, as you might learn before that the first hundred millions from the insurance company were transferred to our account in July, so it will affect the third quarter. To judge the whole amount, so this is still the close analysis and discussion with the insurance company, but of course there are two Two periods. So first is when we were affected by the interruption. So the feed intake was limited on our side. And of course that this is now the second quarter. The situation is a bit different when we are fully supplied. Yeah. So I don't know. Akos, would you like to add something to this?

Thank you. Thank you. Yes, as we already discussed several times, there are basically two types of Olaj Es Gazip The first 100 million already received. This is already with us. You cannot see it in the first half of the result because it happened in July. But while this covers the first quarter lost opportunity and looking at the refinery margins development, Thank you. Thank you. Yes, sorry, and also with regards to the hedging, well, we have our hedging policy in place, and I think it definitely worked very well, and this is already partially we already covered that in the first quarter, yes, we saw really high cost of margining, but in the second one, We were in the sunny side of the story. We are looking at the hedging policy as a good tool for the stability. So this is actually targeting, stabilizing the activity. And at the moment, we just don't really see why to change it. And, well, I think that's what I can disclose with you.

Excuse me, so should I understand that currently you have some hedges in place or not?

I'm referring to the product cracks.

Very limited. So as Akos mentioned, we look at the stability rather than any speculation, so we do not open the position. Just because of the highs and lows of the market. So we keep our hedging policy rather conservative. Our hedging policy is aiming the stability and is rather conservative.

Okay. Thank you. Yes, Jonathan, please go ahead.

Good morning. Hello. You answered my question on insurance. I hadn't realized it was in July. There's one thing bugging me about the upstream results. We had much higher oil and gas prices, but the upstream of ETA didn't actually grow very much. And I'm not quite sure why it didn't grow in line with the higher prices. Can you give us any more color on that? Thanks.

Mm-hmm. Okay. Great.

Okay, thanks. Mr. Tamás Pecser, please go ahead with your question.

Yes, thank you very much. Good morning. Just two questions from my side. First of all, do you have any rough back-of-the-envelope calculation? What would have been your quarterly EBITDA without these one of issues, I mean the Ab3 accident and the fuel cap regulations in the region and the TVK accident. I'm just wondering, you know, because I was just estimating around 1.6, 1.7 billion dollars. I'm very much curious about your opinion. And the second issue is that looking at your very juicy profit, do you see any risk of additional taxation from your key governments like Slovakia and Hungary or Hopefully, this idea is not on the agenda at the moment. Thank you.

Gobi, could you please answer the first one?

Well, frankly, Tomas, I did not do this analysis, but a good point. We could have done it, but as I mentioned, when you, When there was a question about the insurance, my mathematics would be simply to multiply the missing capacity of 83 by a refining margin, adjust it in first quarter and the second quarter. And, of course, that there is some absolute number we can get based on the regulation or the request of governments to be really cautious Gazip Olaj Es Gazip Olaj Es Gazip

Olaj Es Gazip Olaj Es Gazip several other governmental measures with regards to the final motor fuel prices. This is different country by country, but this is also something we consider as a kind of governmental action. Well, Yuri, would you like to say a couple of words about the taxation in general? I think your question is about the question to what status the budget of the countries are in this situation, in this conflict, foreign conflict scenarios, whether some of the countries will run into very low GDP growth because we experience definitely negative signs in, for example, Slovakia. and so it's not a Hungarian specific question I would say every country by country we have to look at the stability of the government the stability of the budget and their willingness to put government actions let it be regulation let it be taxation and for the time being I think during the summer the Because it monitored the developments, I think most of the countries were definitely mainly focused on the supply security and the stability of the supply and the logistics issues. I think in the second half, of course, when the year-end figures will become more and more obvious and, of course, the GDP growth and the inflation figures will affect most of these countries, I think it won't be A general statement that every country will have measures. In some of the countries we can expect that they will. I would like to however make a strong statement that of course margins are high, but in the oil and gas sectors of course these results are not extraordinary that we are now talking about. The costs are high, but the results themselves will not justify extraordinary measures, and we have to focus on two other elements as well. One is that the capex needed for growth, capex needed for sustainability, and capex needed for diversification, which to a certain extent are on the agenda, even if the commission is now a little bit postponing it. Olaj Es Gazip Olaj Es Gazip for budgetary reasons would be particularly a win-win or a zero-sum game. It can create definitely high detriments for future investments. Thank you.

Yes, that's enough. Thank you very much.

Please, Piotr, go ahead with your question.

Hi, good morning. I have a question, two questions maybe. you know when all the reported numbers together with you they kind of recognize something what they call a historical crude oil layer so essentially that comes like on top of a life or effect do you have anything similar in your downstream numbers whereby the blend of crude that you processed is a different heat class than based on the proper CCS measure and the second question I wanted to ask you was about the Overall, how would you assess, at the moment, kind of like a mark-to-market discount or premium that you pay for your crude across the whole three refineries? Thank you.

So, thank you. So, well, during the, after the start of the homeless crisis, really the physical Deliveries were well above the quotations we see as the paper markets. So I mentioned several times that the premiums went up to $20 per barrel, so really the physical market uncoupled from the paper one. Currently it's getting to be more stabilized, so still we see some premiums, but they are Olaj Es Gazip So that goes to India, of course, that this should be adjusted by the logistics cost. And the reality is that there is some volatility in terms of the logistics cost as the effects on the shipping lines also increased. So there is also some volatility there. But I would still keep it up India as the benchmark. Thank you very much for your question.

Sorry, sorry, sorry. So with regards to your question, the CCS methodology, I can confirm that there are no changes. So April to April, we did not show different figures than in the previous period. So I'm not aware of any kind of changes in the methodology. So you can count on this.

Okay. Thank you very much.

Ricardo, go ahead with your question.

Hello. Good morning. If I may, just to follow up on the insurance payment from July, just to double check, was that only related to the missed profits, correct? Have you already received or are you close to receiving anything related to the damages? And then on the second point on the works, the repairing works in the refinery, we've seen some other companies in the region that also went through the same experience coming back with a bit of a higher capacity than they had before in the instance. Would that be the case for you as well? Thank you.

So, thanks for the question. Yeah, go on.

Yeah, sorry, sorry. Yeah, the first question is on me. So out of this 100 million, really kind of very, very small part is property damage. Really the big part is going into the category of the lost profit. I wouldn't like to quantify it, but really kind of really the big part is for the lost opportunity.

Yeah, in terms of the operation pattern of our refinery, Actually, we really tried to run the refinery at the max performance, but there is no change. So I do understand your comments. And also, I also saw that some refineries, mainly in Western Europe, especially in the case where the refineries were not really I was asking on the fire incidents as well, if when the refiner is fully back online, would it have the same capacity as before the fire?

Yes, we are aiming the very same refiner, the very same capacity.

Okay, that is clear. Thank you. Thank you.

Thank you. And finally, Ildar, please go ahead with your question. We can't hear you, Ildar, if you are, I think you are muted.

Yes, sorry, can you hear me now? Yes. So sorry for the background noise, but can I ask you, when are you calling for the euro supply after an euro? Next time.

I'm sorry, could you repeat? I think we couldn't catch you.

Yes, when are your contracts for the supply of euros here, Druzhba, for renewal next time? Thank you.

Well, we got the long-term supply contract, so this really goes beyond the kind of short-term reporting term. I do not have concerns because of the contractual conditions, but definitely it can be very affected by the sanction regime. So this is on the critical part. So rather the sanction regime, our capability first, then the other capability to be fully supplied by the alternative groups, so this would be the second. And in terms of the contractual base, I do not see that as a critical point. Thanks for the question.

That's great. Thank you so much.

Okay. There are no more questions. And thank you for your participation on today's call. And please reach out to us at Investor Relations if you have anything to follow up with.

Thank you very much and have a nice day. Goodbye.