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.