PKN Orlen S.A. — Call Transcript 2025

Good afternoon, everyone. We were holding up at two minutes to make sure that we are already in the afternoon in Warsaw. Please welcome Mrs. Magdalena Bartoś, CFO of the ORLEN Group, for the presentation of Q2 2025 financial results. New guys who kindly join us to discuss these results. Together with us, in the room, there's Przemysław Wasilewski, Head of Strategic Finance, Marcin Piechota, and Konrad Włodarczyk. My name is Jakub Frejlich, I'm Head of Investor Relations. So without further ado, I'll pass on to Magda. Please, the floor is yours. Thank you, Kuba. I suspect we still have some audience from London, so it still needs to be good afternoon or good morning, depending where you are. I am anyways pleased to have you all on this call for another quarterly presentation. And as previously, we will go through some general information on financials before we dive into a detailed segment conversation, and we will conclude with our views on the remainder of the year, and some summary on the outlook. But to begin with, I am very pleased to open this presentation on a strong note. The second quarter of 2025 was indeed a strong one, both financially and operationally, and proves our consistent operational excellence across the board. In all segments, you will see some strong messages as to our operational performance. Despite the decrease in revenue, speaking about the general financial information, the group's EBITDA reached PLN 9.2 billion, a significant PLN 4.2 billion improvement year-on-year. As a group, we still operated in a much more challenging macroeconomic environment compared to last year. That particularly affected margins realized in our upstream and supply segment, downstream segment, refining and petrochemical margins as well. On the other hand, these results were supported by a better regulatory environment, specifically, thanks to the absence of the gas windfall challenge that we still recorded last year. But that is why we consider exceeding PLN 9 billion of EBITDA in a seasonally, typically seasonally weaker quarter to be a very solid result. And on top of that, we significantly improved our cash flows due to higher operating results, but also lower working capital needs resulting from lower commodity prices. And at the end of Q2, our net debt still stood at around zero, similar to the end of the first quarter. However, this level will gradually change due to an upcoming dividend payout scheduled for the first of September and delivery of our investment roadmap. Let's move on to the next page. And here, our key message is that the results, the satisfactory EBITDA result, was driven by strong business performance across all segments, across the board, as I mentioned. On a year-on-year basis, a significant improvement is seen in the... was recorded in the upstream and supply segment. However, and that's due to the softer regulatory background. However, it is worth emphasizing that each segment, each remaining segment, contributed to the result on an large-- on an, on an equal basis to a large extent. And this really speaks to the strength of diversified business model and resilience to seasonality. And now let's take a deeper look into operational data, operational KPIs. Comparing that operational data year-on-year, in the upstream and supply segment, gas and crude oil production decreased by 11% and 16%, respectively, and that's primarily to maintenance works performed in Norway. That's planned, especially on the Phase 3 Ormen Lange field. On a side note here, that work has been completed, delivered, is already contributing to results in the third quarter, and was completed ahead of schedule and below the budget. Wholesale gas sales increased due to higher demand from industrial clients, and also higher volumes sold in the exchange. In the downstream segment, crude oil throughput increased while refining sales remained at a similar level. Petrochemical sales decreased, and here we faced even growing products oversupply, specifically massive imports coming from the U.S. and Asia. We'll talk about it more later on. In the energy segment, electricity production increased by 27%, and that is largely due to higher renewables capacity. Our renewables capacity, by the end of the year, will have expanded by another two point... I'm sorry, 240 megawatts. Heat production increased by 9%, and that's primarily due to weather, specifically lower temperatures in May, and therefore, prolonged heating season. And this also had a significant impact on the gas distribution volumes. Gas distribution volumes grew by 7% increase, and 7% increase in retail gas sales. Retail fuel sales remained at a similar level compared to last year. And now, detailed look, or a deeper look, into each of our segments. We have got a summary of both operational macro and financial information for each of the segments, presented. We start with Upstream and Supply that delivered very solid performance with PLN 3.4 billion of EBITDA, an increase of PLN 4.3 billion year-on-year. And in the second quarter, we were already in the second quarter of this year, we were already free of gas windfall charge. And in the same quarter of last year, windfall charge charged the PNL with PLN 7.7 billion. That's that basically explains the difference between the two quarters for the Polish upstream. So a significant factor as well, boosting the results in the Upstream and Supply segment, is the increase in gas quotations, gas prices, by over 10%. This was somewhat limited by a 20% drop in crude oil prices and the strengthening of Polish zloty against the US dollar and Norwegian krone. EBITDA generated from oil and gas wholesales trading amounted to almost PLN 4,400 million. Compared to the second quarter of last year, margins on wholesale gas sales deteriorated, the spreads simply narrowed, which despite higher sales volumes, was the main reason for the decrease in that business line. Now, our focus in Upstream and Supply remains firmly on maximizing value, efficient production, and growing sales volumes. Now, moving on to Downstream. Downstream's segment EBITDA LIFO was PLN 2.2 billion, down by PLN 0.6 billion. Both, the refining and petrochemical business lines have declined, but that is primarily due to a more challenging macroeconomic environment already mentioned. The refining margins with the differential deteriorated, decreased by 13%, and petrochemical margins by a strong 21%. Unlike the previous year, there were no positive one-offs, no benefits to the results from that. As a reminder, in the second quarter of last year, we received over PLN 400 million compensation for H-Oil unit shutdown. As mentioned before, in the refining business, we maintained sales volumes, sales volumes. However, in the petrochemicals business, we recorded a decline, and that is due to oversupply of products coming from the U.S. and China, but also disruptions at Anwil that impacted the availability of petrochemical units. The Energy segment coming next. To summarize, we see a story of expansion and efficiency here. Energy segment generated PLN 2.3 billion of EBITDA, up of PLN 0.4 billion year-on-year, and that improved results come from gas and electricity distribution largely. Those were driven by volumes growth, particularly in the gas distribution, we mentioned 12%. There's also a significant positive contribution of conventional energy business that grew by primarily due to higher demand from the operator, from the grid operator, while the growing role of the renewables is also worth noting here. In the second quarter, our renewables generated 0.3 TWh more electricity than a year ago. Consumers and Products concludes the segment discussion. Consumers and Products segment generated PLN 2 billion of EBITDA, similar to the first quarter of 2025. And that, on a side note, that speaks to counter-cyclicality of the two components of our Consumers and Products business. The contribution of fuel and utility businesses in this quarter was almost even. Sales and fuel, of fuels were similar to those of last year in the second quarter of 2024. We also achieved higher non-fuel margins in all markets and increased profitability in our international operations. The results of retail gas grew significantly on the back of higher market demand that's related to the already mentioned lower temperatures and prolonged heating season, but also higher demand coming from our industrial clients. Investments. In the first half of 2025, we spent almost PLN 14 billion for investments, which represented roughly 40% of our planned capital expenditure. And so, given that we expect the acceleration in the project execution, in the roadmap execution, in the second half year, we maintain our CapEx forecast of roughly PLN 35 billion, probably the 35 billion being at the top range of our expectation. The 40% of progress at the end of the second quarter is very typical to the previous year's trajectory of delivering our annual CapEx plans. In the next two pages, we will focus on financial standing. In our strategy, you might remember in our strategic discussions, we emphasized the need for a proper approach towards financing of our investment projects and also ongoing operations. We also identified the need for responsible and effective capital allocation as one of the key pillars of our strategy. And therefore, during the second quarter, we completed our functional financing strategy that targets ensuring financial liquidity, especially taking into account the complexity of our operations and the increasing volatility of environment, but also financing development and value growth of the group. All of which, while maintaining financial ratios at the level defined in the strategy, and let me just briefly remind you that the maximum leverage we expect or allow is probably better to say is 2.0 of net debt to EBITDA. And as a result of our policy update, in the first half of 2025, we managed to complete significant milestones. At the very beginning of the half year, we issued bonds worth of $1.25 billion US dollar dedicated to the US market, and then towards the end of the half year, we issued green Eurobonds worth EUR 600 million, specifically dedicated to finance the energy transition. We have also successfully applied for non-refundable support to finance our hydrogen projects development, worth close to PLN 1.7 billion Polish zloty, and over PLN 1 billion of support for gas smart metering and expansion and modernization of our gas network in Poland. Moreover, we also signed significant loan agreements with European Investment Bank of PLN 3.5 billion and a loan of up to PLN 7.6 billion with the Polish Development Bank as part of the National Recovery and Resilience Plan for our Polish audience, KPO. There is still more to come. We're working on a few very efficient, but also very exciting projects related to asset-backed loans for development projects, among others. Stay tuned, there's more on that coming up in the next quarters. And by doing this, we're building a portfolio of diversified sources of financing. We're strengthening... while strengthening also our presence in the financial markets. And now a bit more on the financials and our current financial standing. In terms of net debt to EBITDA, we mentioned at the beginning, we stand at a very similar level, as to the one recorded for the first quarter. To be very precise, our net debt to EBITDA covenant was, minus 0.08 times, negligible. And this confirms, obviously, very good position, gives us, a very comfortable position, ahead of, ahead of the dividend payout and ahead of the second half year intensification of our strategic, roadmap delivery. At the end of the second quarter, we had PLN 5.5 billion of net cash, and we recorded in the first half, PLN 6.8 billion decrease in working capital, requirements related, to, to lower commodity prices. In the first half year, we reduced the group's net debt by PLN 12.5 billion, and as a result of operational cash flow generation of around PLN 26 billion less the investments realized in the first half year of PLN 13 billion. And to conclude our outlook for the year for 2025 as compared to 2024, what is specifically worth mentioning and underlining at this stage is definitely a favorable environment in the refining market. We are seeing the macro environment supporting this part of our business, and we can expect that the refining margins for the year should be at a very similar level to the last year, which is significantly better than what we expected at the beginning of the year. Regarding the remaining factors, there are no significant changes here, and we, and as such, we remain comfortable with the current consensus, analyst consensus for the EBITDA of 2025. This concludes the presentation. I will now open the floor to your questions, and we will be happy to take your questions in the Q&A session. Kuba, over to you. Thank you, Magda. Well, I saw you already jumping in with questions. So as usual, we'll start with first come, first served. So the first one to be served is Łukasz from BOŚ. Please, Łukasz, the floor is yours. However, please limit yourself with questions up to two, then we can allow for follow-ups. That's gonna be easier to serve. Thank you. Okay. Hello, Łukasz Prokopiuk from BOŚ. Can you hear me? ... Yeah? Yes, we can. Okay. I will go. Two, two questions on update on Venture Global. The first one on the arbitration case against Venture Global, and can you, can you give us any update, when do you expect any ruling? And can you comment on the recent losing of Shell against Venture Global in, in its arbitration? That's the first question. And the second, how much, LNG from Henry, quoted on Henry Hub do we expect this year, and how much do we expect next year? Those are the first two questions. Thank you. Let me first start with Venture Global and the arbitration case. We indeed saw news coming about the results of Shell arbitration case. Very difficult for us to comment on that particular case and that particular verdict. Ours is expected or some news from the arbitration court is expected at the beginning of next year when the first sitting should take place. Therefore, I think we will need to simply patiently wait till the beginning of next year to reveal some more information and news about the expected outcomes. When it comes to the LNG delivery, we started receiving cargos from Calcasieu Pass. In the first half year, we received four, if I'm not mistaken. Four. Three. All right, thank you, Marcin. But I see that Marcin has got details in front of him. So, Marcin, let me pass over to you. Yes, thank you very much for this question. In fact, the Venture Global started its shipping at the end of April. And so, we are expecting this volumes, of course, to grow in forthcoming quarters. We are not disclosing our plan for exact volume that we are willing to receive right now. But, you have our estimations about. You have our details around about the contract that it states it is up to 2 billion cubic meters of LNG that may be delivered from Calcasieu Pass per annum. So, we expect this to be fulfilled by the Venture Global. Okay, thank you. But can you perhaps, if you cannot give us any numbers, imports numbers, but could you please tell us how much % growth do you expect next year of imports compared to this year? You mean only coming from Calcasieu Pass, right? LNG based on Henry Hub, like, the Cheniere contracts, too. Mm-hmm. Well, in total, we assume that both of the contracts that we have for Henry Hub, starting from 2026, will be fully utilized. So therefore, it means almost 2 billion cubic meters coming from Cheniere, and 2 additional billion cubic meters coming from Venture Global, Calcasieu Pass. Okay, but you have another $5 billion contract with Venture Global, which was supposed to be coming next year, but, that's the reason I'm asking the question: Do you expect anything from this contract? It depends, of course, because the second part of the contract with Venture Global is from different terminal. It's Plaquemines, and we are cautious about when this contract will start, based similarly, like, in the case of Calcasieu Pass. We need to have the confirmation that the terminal will be exporting. Well, to sum up, we have the contract valid. However, we're cautious on volume confirmation, as we have some experience that proved us to be correct in being cautious. That's, I guess, I should be summarizing this. Maybe we can move on to the second person, Tomasz. Thank you. Tomasz? It's you. Yes, hello. This is Tomasz Szkurlat, Santander. Two questions. The first one is on CapEx, and I'm just wondering, what are the odds of you underspending this year versus your budget? And also, when I look at your strategy and see this CapEx figure between 43-47 is the average for 2025-2027, I was just wondering whether already right now you have the project in your pipeline that could next year lift your CapEx figure to this higher level? So this was the first one, and the second is on working capital. Second quarter was another quarter where you released quite a lot of money from your working capital. So I'm wondering, what do you expect for the second half of the year? And if you could... Tell us more about the drivers of working capital. What was behind the release? I also remember you saying last time that you were talking about some structural actions aiming at release of cash from working capital. If you could give us an update on that one. Thank you. Thank you, Tomasz. Let me start with CapEx and what are the odds of us on underspending on the budget. I mentioned in our CapEx page here that the PLN 35 billion is rather towards the upper range of our expectations, and there are still risks around the delivery, but more around phasing. So it might be that some parts of the CapEx. There are simply a lot of moving parts, and it might happen that some parts of our CapEx spend will shift into 2026. But we are pushing forward, and our teams are absolutely committed to deliver. We introduced also a more flexible internally tool to reallocate CapEx from the areas that are either being delayed or unsuccessful to areas that can deploy teams to deliver new CapEx initiatives or projects like, for example, in electricity distribution. So that work is ongoing, and we strive to deliver on the 35, but whether there is a risk of some bits moving into the first quarter of 2026, there still are, and we are actively managing those risks. You also asked about projects going forward in the pipeline for 26-28, and how it compares to the strategy. Just a quick reminder, the numbers, the figures we see in the strategy include inorganic growth as well, so we include M&A projects, not only investment in our assets, i.e., organic growth. For the investments, I think that the typical investments, let's say, I think we've got very good visibility where the priorities are, and what new projects will be added into our strategic roadmap. Those are CCGTs in Gdańsk and Grudziądz, and also preparations for the offshore wind farms going forward. As additional, we also continue on the projects that you're seeing in our roadmap today as well. When it comes to inorganic growth, there is a rich pipeline of projects. You've probably noticed, and we're also a little bit looking forward to the next quarters, 'cause we haven't completed any significant transaction this year. But the pipeline is rich, and we hope to be able to communicate some good news in the coming quarters. So yes, that target is still in place or is still valid for us. And then, in terms of working capital, the decrease in working capital in the second quarter or in the first half year, 'cause we compare here end of quarter two versus end of 2024, was driven primarily by lower commodity prices. We do have a pipeline of initiatives that are supposed to support our working capital structurally going forward. But still, the largest impact on our working capital will always be from gas and crude oil, specifically prices. And we expect these to. We don't see any great volatility coming. I think there is a general expectation for the gas prices to remain to remain at the current levels, or or even more pressure coming on those gas prices. Crude oil prices recorded a midterm minimum, let's say, and there is no driver that would potentially or no discussed driver that would potentially reverse that trend. Of however, the volatility has been quite significant this year as well. During the second quarter itself, there was great volatility with tariffs announcements, with OPEC movements related to crude oil production. So a lot going on. We will observe going forward, but we don't expect any significant changes to the commodity prices that would drive some dramatic changes in the working capital needs. Thank you. Piotr, the floor is yours. Citi. Good morning, everybody, or good afternoon. So I have two questions. There are some headlines discussing that you are considering your options for Energa. Can you please tell us a little bit, even briefly, what is at stake here? Like, there's press articles talking that this subsidiary wants to raise capital and put more projects into operations. There's a number of politicians talking in press also, what else they want to achieve. And you originally, I remember, ORLEN announced tender offer for 100%. So can you please tell us what options you will be briefly discussing with the advisor, as this headline suggested you hired one? And second one, could you please describe-... Also help us understand where you stand on this Azoty PDH project, whether, I mean, you, I think, what's the latest, if you extended the term sheet or where we are? Yeah. With regards to Energa, I think I will need to separate my answer from the public noise and focus on the facts. So the fact is, that we've got a significant energy group, a significant public energy group in Poland, that is traded on the Warsaw Stock Exchange, and there are minority shareholders that have expressed their dissatisfaction with the fact that ORLEN has got a majority stake with Energa. We tried tendering for Energa shares in the past, that was unsuccessful, and we are still ORLEN on its corporate balance sheet finances the development plan of Energa and all the major investment projects. And we obviously need to find the best way going forward to deliver on our strategy objectives in terms of energy segment, and to support producing returns to our shareholders. So we asked a reputable advisory firms to propose solutions that we would potentially implement going forward. The reason for hiring an advisor here is that we simply want to have an independent view. We want to analyze any possible options. So even in theory, if there is an option that is potentially feasible, we want that to be analyzed, put on the table, and then together with Energa and Energa stakeholders, decide on the future of us and where the synergies are simply to be delivered. And when it comes to Azoty PDH, you probably have noticed an announcement from Grupa Azoty that we decided not to put a binding offer and not to proceed with a share transaction. That is indeed true. However, we are still committed to the project, and we see the asset as a high-quality asset. Our interest now that we are exploring is in the logistical assets. There is a significant energy that we can deliver to ORLEN in the port, specifically propane reloading operations. We've got a propane port, smaller port, shallow waters port in Szczecin that is very close to Police. We could deliver propane on larger vessels to Police and then deliver on synergies related to logistical costs. That is clearly an interesting option that we are discussing with Grupa Azoty that can be combined with the needs of the PDH projects and that's something we are exploring going forward. What's going to happen with the PDH installation? Is it going to start or or? There's enough capacity at the port to serve both purposes. Okay. Thank you very much. Thank you, Piotr. Anna Kiszczak, UBS. Hi, I hope you can hear me. Thank you very much for the presentation. Several questions. First will be around the Litvínov outage, if you can provide some color on what is expected there, how fast it can be restarted, etc. And one around your estimates for the gas trading segment results in third quarter. Like, if you can provide some color of how are the trading margins looking currently? Thank you very much. Anna, there was an outage in Czech Republic that impacted our Litvínov plant in July. We managed to restart operations in Litvínov, but when restarted to full capacity, we noticed certain disruptions in our steam cracker units. As such, we decided to... or as a result, we decided to shut down the steam cracker that puts the refinery at minimum capacity. We are currently analyzing the reasons for those disruptions, and putting a plan together in order to eliminate and repair the unit. It is definitely a matter of weeks, not days, but there is still no final solution on the... or final plan on the table. Estimates on gas trading, just a quick reminder, we don't have a gas trading segment. We've got an upstream and supply segment that deals with supplying volumes to the markets and other segments. But I mentioned already that we have experienced narrowing spreads for the gas trading that should probably stabilize going forward, as the volatility in gas prices is also lower than the previous years. Therefore, that's probably to be expected. So, narrower spreads, but stabilized situation. Thank you very much. Ricardo, please. Ricardo? Hello. Yeah, Yeah, can you hear me? Yeah. Sure. So first question that I have is on the olefin project. How things are going on your side, and should we continue to expect any sort of more visibility and more details, or by year end? And then the second question, it's on we've seen some announcements from China and South Korea on petchem, something on refining as well, potential capacity closure. Given how we've been seeing a challenging environment for petchems in Europe, do you think that if we go ahead and see some of those closures, that could help your margins? Or do you think it's more of a headline and nothing really changing on the fundamentals? Thank you. I think I will start with a comment that for us, petrochemicals production is not really a standalone business. It's part of an integrated value chain. So we still benefit from petrochemicals production by increasing throughput at our refineries. And that's a critical comment, as compared to other players in the market that are announcing closures, and because they don't benefit from the integrated value chain. Whether those closures will support our margins, we surely hope so, and we expect some improvement, but we're also very cautious with those expectations. So none of our internal plans includes any optimistic expectation on the cycle trend reverse. We see structural changes in the market when it comes to feedstock. We see structural changes in the market when it comes to capacities. Demand is also soft in Europe, therefore, we keep our expectations rather lower, and focus on operational efficiency and utilizing the integrated value chain margins. When it comes to the new olefins projects, there's been loads of work done over the past two quarters in order to prepare an integrated, an integrated plan combining the work to be delivered on the ISBL and OSBL, and discussing with our partners about the contractors, but also trading partners. We're, we've delivered on some significant milestones. The next one that we would like to communicate and discuss publicly is an updated budget, which we promise to come back to you with end of September. We might have some struggles as discussions with the contractors are ongoing, but there is a plan to deliver on that promise and present the budget end of September. Thank you. Oleg Galbur, please. Your turn. Yes. Good afternoon. I hope you can hear me well. I have two questions. The first one is regarding the recently announced asset impairments. As those impairments were triggered by the deterioration of macro assumptions for the ongoing project, could you please tell us how would these new macro expectations impact your EBITDA guidance for the downstream segment, specifically for 2027 and more importantly, for 2030, where you guide for PLN 6 billion-PLN 7 billion and PLN 10 billion-PLN 11 billion respectively? And the second question is, a follow-up on your earlier comments about the petrochemical business. I noticed that the model petchem margin has improved quite significantly in the second quarter versus the first quarter. At the same time, the segment results having improved or the loss has decreased significantly less. I was wondering, first of all, which level or how do you see evolving the petchem margins in the short term? Second of all, what level of margins would you require in order to bring the petchem business to break even, for example, if you have some, some ideas? Thank you. I hope I got your questions correctly, 'cause there was some bad line. But I'll start with asset impairments, and let me clarify. We've got, in our first half year, asset impairment. We've got, let's say, two groups of impairments. One related to upstream, specifically in the second quarter. Upstream got impaired, parts of upstream got impaired, due to lower realized crude oil prices. It's not really about our expectations, though, the standard requires us to recalculate when there is a potential impairment indicator, and the drop in crude oil price is such an indicator. Therefore, hence, we recalculated our results to the current prices and recorded some impairment in upstream. On the other hand, we also reversed impairment in the upstream as due to our ongoing investment in the exploration assets, we are increasing efficiency. And that's allowed us to reverse some of the previously recorded impairments. The impairments we've got in downstream are not really driven by deteriorating macro environment. We've got two large investments, the olefins project, and bottom of the barrel, so the hydrocracking unit in Mažeikiai, in Lithuania. That simply are in the red. And as we continue delivering on those projects, we are re-evaluating the value in use. If that's lower than the spent CapEx, we simply need to write off the CapEx that we spent during the quarter. So it's not that there is some change in our expectations related to macroeconomic environment, it's more the sense of the past, so to say, that we need to, that we need to, simply deal with on an ongoing basis. And you also asked about the model petchem margins. Those improved quarter-on-quarter, but still dropped by more than 20%, year-on-year. So we are simply in a persisting, very difficult macroeconomic environment. Those changes in, in the petrochemicals, model margins are not really due to, any, movement in the market related to prices or profitability of those, mostly related to feedstock. So with the lower crude oil price, we've got lower naphtha prices, and that is part of our petchem margin computation, hence the increase in the petchem model margin. But the results were indeed in Q2 weaker than in Q1, because of also mentioned disruptions in the operations. We had blackouts in May at our Anwil unit or Anwil plant, and that disrupted operations and volumes produced, hence a difficult quarter for that business line to manage, to navigate through. Thank you very much. May I just ask one confirmation for the first question? So does it mean that you see no need to revise your EBITDA guidance for the downstream segment for 2027 and 2030 as a result of the impairments that we discussed about? We see no significant change to our strategic assumptions. Hence, of course, we will re-evaluate our strategic plans towards the end of the year, also financially, but no significant structural change to our expectations for each of the segments. Thank you. Michał Kozak, Trigon, please. Hi. Do you hear me well? Yeah. Very well. Okay. So two questions from my side. The first one, what is the total size of Gazprom's claims against ORLEN, and how much is it booked in your provisions? And the second question: How much do you pay for chartering LNG ships in wholesale trading? What was the CapEx amount in this sub-segment in upstream and supply in the first half of this year? And could this cost rise and hit EBITDA if imports grow in the coming years? It seems to me that there is no free cashflow in this line, in the first half of the year, due to high CapEx, due to high charters. Thank you. Thank you. I will start with Gazprom, but Marcin, in the meantime, if you could find some more detailed information on the chartering and ships. All right. Gazprom and the recent arbitration decision, and how it's reflected in our financial statements. The arbitration decision was to revise gas sales prices to an updated formula. In essence, we simply acquired gas at lower prices. That was the decision of the court in 2018, 2019 and 2020. We recalculated all of the purchases and came up with a maximum amount of $290 million, and that is recorded as a conditional liability and included in our financial statements. We, however, assessed in detail what is the probability of the future economic benefit outflow. We are currently unable, due to sanctions and regulations, to settle off that liability, and we don't expect that situation to change rapidly. Therefore, we procured several scenarios evaluating the probability of us having the obligation to... The obligation or actually the possibility to pay, because the obligation we have already. We came up with an accrual provision of PLN 217 million... We will reevaluate that provision each quarter, exactly evaluating what is the possibility of the future economic benefit outflow. There is a bit more to notice here, 'cause the situation with the settlements to Gazprom is quite complex. There is another, another at least two cases that we expect in the next years. It relates to a revision of gas sales prices for 2021 and 2022 as well. One relates to interest payments. Therefore, in order to have the full picture, we will need to conclude on those remaining cases, but that first one is already reflected in the financial statements and in our books. Marcin, over to you for the ships and shipping. Yes. Indeed, the CapEx that we have now plans for the charter of LNG carriers is over PLN 2 billion for 2020, for 2025. However, we will look into more details in reference to the forthcoming years, how this will look like, and we'll get back to you on the call. Okay, thank you. Krzysztof, PKO? Hello, everyone. Krzysztof speaking. Thank you for the presentation. I only have one question, because you referred to the analyst consensus with respect to EBITDA line. However, I was wondering if you could refer also to DPS, right? Which is right now, as I'm looking at the Bloomberg terminal, 5.7 for next year. And I was wondering, after this first half, we saw the operating cash flow numbers, which is the base for calculations for the calculation of dividend, in your case. And you see, you see that there is a risk that the CapEx spend is also going to be lower than you guided. Does it mean that we could expect even, like, a higher dividend, like a total dividend next year, in 2026? The way to respond to this question or, the way I am going to respond to the question, is evaluating. We need to, when making, the dividend decision next year, we will take into consideration operating cash flows and the quality of the operating cash flows. So far, we have been happy with the quality of operating results our segments delivered. Volumes are solid, macroeconomic environment is difficult, or more difficult than it used to be, but the macroeconomic environment in the downstream segment is supporting our business. All in all, good performance in a more stable, however, weaker environment. Then the next is the financing availability. We've done a lot of work on the financings, secured around PLN 10 billion of preferential or non-refundable financing. We issued two rounds of bonds, one successfully reentered the U.S. dollar market and reopened the green financing in euros. We are also working on other asset-backed financing arrangements, as I mentioned. Therefore, as we stand today, it is probably going to be a tick in the box when it comes to availability of financing and the quality of our funding structure. And then, lastly, of course, the CapEx plans and the needs going forward. So far, we've delivered on the plan. There might be some delay here and there. Again, as I said, a lot of moving parts, but we see the situation under control. As we stand today, we are on a journey towards a recommendation, dividend recommendation, that is going to be exactly in line with our dividend policy, so up to 25% of operating cash flows, less financing costs. Does that make sense? Yeah, yeah. Thank you. Thank you very much. Now we move on to Gustavo Campos, please. Hello. Hey, Gustavo. Hi. Sorry. Yes, thank you very much for the call, and congrats on the strong results. I had yeah, just a couple of questions from my side. First of all, I'm trying to think here, what are the main drivers that are keeping petrochemical prices at you know at these trough conditions that you mentioned and into the second half of the year? If you could elaborate a bit on the macro backdrop, and if you have any visibility on the timing of any potential recovery in the industry that could support margins. Yeah, that would be my first question. Thank you. ... Look, Gustavo, margins in our prices in petrochemicals business is a play of supply and demand. What we're seeing in Europe is softer demand, and what we're seeing in Europe is an oversupply, specifically coming from imports. Of course, the situation we discussed with the previous question, so the closures of units in Europe and limiting local supply will, to some extent, soften or not really soften, ease the situation and support the prices. But whether that will be the scale that everyone expects is actually relatively hard to comment. Again, for us, as I mentioned, while we would love to benefit from an easier, softer market... Sorry, not a softer market, but an easier market, we are still benefiting from an integrated value chain, and margins realized on both, refining and increased throughput. That's how petrochemicals contributes to our results at this stage. So what would need- Understood, yeah ... to happen for the recovery to happen? Either demand significantly improved, will that happen with the recovery efforts for Ukraine? Will that happen with some decisions of the European Commission and changes in the European industrial landscape? Probably. But none of those, I think, is a quick fix. Or limiting supply to the European markets, that can happen with some regulatory decisions and legislation, but there is nothing on the kind of quick short-term horizon. Understood. Thank you. That is very helpful. My second question would be around if you could please give an estimate on the percentage of your EBITDA contribution that is linked to gas prices and the oil prices, separately. That would be very helpful. Thank you. The way we are exposed to those two commodities is highest, obviously, in the upstream and supply segment, where we produce gas and crude oil. But on the other hand, our business model includes countercyclicity, as I mentioned, and also some natural hedging. Because the same gas and crude oil is an input feedstock to production in our downstream segment. So when the prices move either way, we benefit in one segment and while we record narrower spreads in the other segment. Gas is also inputs into electricity production and drives electricity prices to some extent. So I think it's a more complex picture than just applying a percentage on EBITDA contribution, 'cause there is a contribution on both ways. There is a contribution on realized prices on exploration, and here Upstream Poland and Upstream Norway are the key pieces of the puzzle. But there is also input on towards a significant input towards the downstream segment. Understood. Yeah, no, that is very clear. And your gas production, as far as you know, for example, 2026, do you have any estimate of how much your gas production is hedged in by prices? We probably would refrain from detailed discussions on our hedging policy. That's a very sensitive information. So let me leave it this way. If you could connect with the IR team, or the IR team will connect following the presentation and see how we can address that question without again putting us in a too uncomfortable situation, revealing too much about our hedges. Understood. Yeah, apologies for that. Yeah, thank you. Don't raise your expectation. Sorry, lastly, I just wanted to ask about the funding needs. You said you had some asset-backed loans that you were still working on, but other than that, should we expect any additional, like, bilateral loan agreements or more issuances for the rest of this year? Or do you think that your debt funding needs are already addressed as far as 2025? Mm-hmm. Thank you. Gustavo, I, we think or we work with our funding schedule or funding plan, with a much longer horizon than just funding a year. We rather try to match, our funding, to, the milestones and needs of our strategy roadmap. So it's not really about 2025 here, it's about establishing, establishing a portfolio or building a portfolio, of, tools and instruments that will allow us to fund our strategy in the midterm, at least. Hence, that's exactly why we issued bonds this year. The markets were good and allowed us to, deliver on successful transactions. We're working on some asset-backed financing. Some transactions might be ready already this year, but here we're rather working on proper relationship and making sure that we match the funding needs to the projects, 'cause that's then a very specific financing that's not really on, that that's aimed or that's supporting a particular investment project. So again, there's a lot going on here. What we've delivered, we've already shared with you. We've got some more news coming up. Whether the projects will have finalized this year is not really that critical, but it's critical that we've got the right quality of our funding pools, the right liquidity, and the right cost. Maybe a little bit of a comment here. Financing is an ongoing project. I mean, we're gonna be delivering on those projects constantly and instantly, on various needs, 'cause we both require long-term capital for investments, but we also require working capital for ongoing operations. So this is a summary here that we presented and Magda discussed, that actually summarizes our approach, and therefore results of this approach that have been delivered over the last six months. And, big money likes to be silent unless signed, and most probably we will align to that, going forward. So we're not, giving heads-up on that, too soon. However, we're just listing here what, what we see as a sensible and substantial strategy, strategy delivery, so aligning required cash flows and its maturity, to respective business lines or business needs that we have. This is something that is putting a lot of working hours on us, and, giving us, the delivery of, or us helping delivery of the strategy. That... Let's put it that way. However, I would like to, with that summary, leave the floor to Tamás with the last question, and wrap up if you don't have anything against. So, Tamás, please. Yes, thank you very much. Good afternoon. So two quick question on my side. First, on the upstream, I saw that the second quarter production volume was significantly lower than the first quarter. Was it only due to the maintenance activity, or were you losing any production? And what is your guidance actually for 2025, 2026? That would be my first question. And second question is a little bit about your distribution network, which basically brought two-third of the profit in the energy business. These WACC rates, what you mentioned, are they in line with the law, or do you see any risk that the regulator may cut them in the future? Thank you. Tamás, in terms of upstream, and our volumes, there are two factors, that can be seen in the second quarter result. One is lower gas production volumes, and that's due to maintenance and, to some extent, investment operations as well. Specifically, the mentioned Ormen Lange Phase 3 project. It's an add-on project to an already existing exploration asset, therefore, we needed to adjust production in order to complete on that investment activity. When it comes to crude oil, which is a much less impactful part of our upstream production, we obviously see some natural depletion of resources, but that is less of a focus for us. For us, the key focus in upstream is gas supply, and with all of our activities and the quality of the assets that we currently have in our portfolio, we've got positive outlook for the remainder of the year and the next years. Distribution and return on assets, the WACCs you're seeing are the return are the WACCs decided by the regulator or approved by the regulator that are being used to remunerate our distribution assets on the regulated asset base. Will they change in the future? Certainly. As part of the tariffs review, WACCs are being reviewed as well. It is in the common interest of both us and other distribution operators, distribution grid operators, and the regulator to find the right remuneration on the asset base in order to expand and modernize the grid, which is one of the key priorities in terms of the Polish energy transition. Okay, great. Thank you very much. Thank you. Thank you very much. It's been very, active and lively discussion, so thank you for, participating. Thank you, Magda. We'll be wrapping up. As mentioned, should you like to have any follow-ups, we are here for you. And, see you in a quarter, if not before, on the road. Thank you so much. It was good to have you with us. Take care.

Speaker 3: Good afternoon, everyone. We were holding up at two minutes to make sure that we are already in the afternoon in Warsaw. Please welcome Mrs. Magdalena Bartoś, CFO of the ORLEN Group, for the presentation of Q2 2025 financial results. New guys who kindly join us to discuss these results. Together with us, in the room, there's Przemysław Wasilewski, Head of Strategic Finance, Marcin Piechota, and Konrad Włodarczyk. My name is Jakub Frejlich, I'm Head of Investor Relations. So without further ado, I'll pass on to Magda. Please, the floor is yours. Good afternoon, everyone. good afternoon everyone We were holding up at two minutes to make sure that we are already in the afternoon in Warsaw. we were holding up at two minutes to make sure that we are already in the afternoon in warsaw Please welcome Mrs. Magdalena Bartoś, CFO of the ORLEN Group, for the presentation of Q2 2025 financial results. please welcome mrs magdalena bartoś cfo of the orlen group for the presentation of q2 2025 financial results New guys who kindly join us to discuss these results. new guys who kindly join us to discuss these results Together with us, in the room, there's Przemysław Wasilewski, Head of Strategic Finance, Marcin Piechota, and Konrad Włodarczyk. together with us in the room there's przemysław wasilewski head of strategic finance marcin piechota and konrad włodarczyk My name is Jakub Frejlich, I'm Head of Investor Relations. my name is jakub frejlich i'm head of investor relations So without further ado, I'll pass on to Magda. so without further ado i'll pass on to magda Please, the floor is yours. please the floor is yours

Speaker 5: Thank you, Kuba. I suspect we still have some audience from London, so it still needs to be good afternoon or good morning, depending where you are. I am anyways pleased to have you all on this call for another quarterly presentation. And as previously, we will go through some general information on financials before we dive into a detailed segment conversation, and we will conclude with our views on the remainder of the year, and some summary on the outlook. But to begin with, I am very pleased to open this presentation on a strong note. The second quarter of 2025 was indeed a strong one, both financially and operationally, and proves our consistent operational excellence across the board. Thank you, Kuba. thank you kuba I suspect we still have some audience from London, so it still needs to be good afternoon or good morning, depending where you are. i suspect we still have some audience from london so it still needs to be good afternoon or good morning depending where you are I am anyways pleased to have you all on this call for another quarterly presentation. i am anyways pleased to have you all on this call for another quarterly presentation And as previously, we will go through some general information on financials before we dive into a detailed segment conversation, and we will conclude with our views on the remainder of the year, and some summary on the outlook. and as previously we will go through some general information on financials before we dive into a detailed segment conversation and we will conclude with our views on the remainder of the year and some summary on the outlook But to begin with, I am very pleased to open this presentation on a strong note. but to begin with i am very pleased to open this presentation on a strong note The second quarter of 2025 was indeed a strong one, both financially and operationally, and proves our consistent operational excellence across the board. the second quarter of 2025 was indeed a strong one both financially and operationally and proves our consistent operational excellence across the board In all segments, you will see some strong messages as to our operational performance. Despite the decrease in revenue, speaking about the general financial information, the group's EBITDA reached PLN 9.2 billion, a significant PLN 4.2 billion improvement year-on-year. As a group, we still operated in a much more challenging macroeconomic environment compared to last year. That particularly affected margins realized in our upstream and supply segment, downstream segment, refining and petrochemical margins as well. On the other hand, these results were supported by a better regulatory environment, specifically, thanks to the absence of the gas windfall challenge that we still recorded last year. In all segments, you will see some strong messages as to our operational performance. in all segments you will see some strong messages as to our operational performance Despite the decrease in revenue, speaking about the general financial information, the group's EBITDA reached PLN 9.2 billion, a significant PLN 4.2 billion improvement year-on-year. despite the decrease in revenue speaking about the general financial information the group's ebitda reached pln 9.2 billion a significant pln 4.2 billion improvement year-on-year As a group, we still operated in a much more challenging macroeconomic environment compared to last year. as a group we still operated in a much more challenging macroeconomic environment compared to last year That particularly affected margins realized in our upstream and supply segment, downstream segment, refining and petrochemical margins as well. that particularly affected margins realized in our upstream and supply segment downstream segment refining and petrochemical margins as well On the other hand, these results were supported by a better regulatory environment, specifically, thanks to the absence of the gas windfall challenge that we still recorded last year. on the other hand these results were supported by a better regulatory environment specifically thanks to the absence of the gas windfall challenge that we still recorded last year But that is why we consider exceeding PLN 9 billion of EBITDA in a seasonally, typically seasonally weaker quarter to be a very solid result. And on top of that, we significantly improved our cash flows due to higher operating results, but also lower working capital needs resulting from lower commodity prices. And at the end of Q2, our net debt still stood at around zero, similar to the end of the first quarter. However, this level will gradually change due to an upcoming dividend payout scheduled for the first of September and delivery of our investment roadmap. Let's move on to the next page. And here, our key message is that the results, the satisfactory EBITDA result, was driven by strong business performance across all segments, across the board, as I mentioned. But that is why we consider exceeding PLN 9 billion of EBITDA in a seasonally, typically seasonally weaker quarter to be a very solid result. but that is why we consider exceeding pln 9 billion of ebitda in a seasonally typically seasonally weaker quarter to be a very solid result And on top of that, we significantly improved our cash flows due to higher operating results, but also lower working capital needs resulting from lower commodity prices. and on top of that we significantly improved our cash flows due to higher operating results but also lower working capital needs resulting from lower commodity prices And at the end of Q2, our net debt still stood at around zero, similar to the end of the first quarter. and at the end of q2 our net debt still stood at around zero similar to the end of the first quarter However, this level will gradually change due to an upcoming dividend payout scheduled for the first of September and delivery of our investment roadmap. however this level will gradually change due to an upcoming dividend payout scheduled for the first of september and delivery of our investment roadmap Let's move on to the next page. let's move on to the next page And here, our key message is that the results, the satisfactory EBITDA result, was driven by strong business performance across all segments, across the board, as I mentioned. and here our key message is that the results the satisfactory ebitda result was driven by strong business performance across all segments across the board as i mentioned On a year-on-year basis, a significant improvement is seen in the... was recorded in the upstream and supply segment. However, and that's due to the softer regulatory background. However, it is worth emphasizing that each segment, each remaining segment, contributed to the result on an large-- on an, on an equal basis to a large extent. And this really speaks to the strength of diversified business model and resilience to seasonality. And now let's take a deeper look into operational data, operational KPIs. Comparing that operational data year-on-year, in the upstream and supply segment, gas and crude oil production decreased by 11% and 16%, respectively, and that's primarily to maintenance works performed in Norway. That's planned, especially on the Phase 3 Ormen Lange field. On a year-on-year basis, a significant improvement is seen in the... was recorded in the upstream and supply segment. on a year-on-year basis a significant improvement is seen in the was recorded in the upstream and supply segment However, and that's due to the softer regulatory background. however and that's due to the softer regulatory background However, it is worth emphasizing that each segment, each remaining segment, contributed to the result on an large-- on an, on an equal basis to a large extent. however it is worth emphasizing that each segment each remaining segment contributed to the result on an large-- on an on an equal basis to a large extent And this really speaks to the strength of diversified business model and resilience to seasonality. and this really speaks to the strength of diversified business model and resilience to seasonality And now let's take a deeper look into operational data, operational KPIs. and now let's take a deeper look into operational data operational kpis Comparing that operational data year-on-year, in the upstream and supply segment, gas and crude oil production decreased by 11% and 16%, respectively, and that's primarily to maintenance works performed in Norway. comparing that operational data year-on-year in the upstream and supply segment gas and crude oil production decreased by 11% and 16% respectively and that's primarily to maintenance works performed in norway That's planned, especially on the Phase 3 Ormen Lange field. that's planned especially on the phase 3 ormen lange field On a side note here, that work has been completed, delivered, is already contributing to results in the third quarter, and was completed ahead of schedule and below the budget. Wholesale gas sales increased due to higher demand from industrial clients, and also higher volumes sold in the exchange. In the downstream segment, crude oil throughput increased while refining sales remained at a similar level. Petrochemical sales decreased, and here we faced even growing products oversupply, specifically massive imports coming from the U.S. and Asia. We'll talk about it more later on. In the energy segment, electricity production increased by 27%, and that is largely due to higher renewables capacity. Our renewables capacity, by the end of the year, will have expanded by another two point... On a side note here, that work has been completed, delivered, is already contributing to results in the third quarter, and was completed ahead of schedule and below the budget. on a side note here that work has been completed delivered is already contributing to results in the third quarter and was completed ahead of schedule and below the budget Wholesale gas sales increased due to higher demand from industrial clients, and also higher volumes sold in the exchange. wholesale gas sales increased due to higher demand from industrial clients and also higher volumes sold in the exchange In the downstream segment, crude oil throughput increased while refining sales remained at a similar level. in the downstream segment crude oil throughput increased while refining sales remained at a similar level Petrochemical sales decreased, and here we faced even growing products oversupply, specifically massive imports coming from the U.S. and Asia. petrochemical sales decreased and here we faced even growing products oversupply specifically massive imports coming from the u.s and asia We'll talk about it more later on. we'll talk about it more later on In the energy segment, electricity production increased by 27%, and that is largely due to higher renewables capacity. in the energy segment electricity production increased by 27% and that is largely due to higher renewables capacity Our renewables capacity, by the end of the year, will have expanded by another two point... our renewables capacity by the end of the year will have expanded by another two point I'm sorry, 240 megawatts. Heat production increased by 9%, and that's primarily due to weather, specifically lower temperatures in May, and therefore, prolonged heating season. And this also had a significant impact on the gas distribution volumes. Gas distribution volumes grew by 7% increase, and 7% increase in retail gas sales. Retail fuel sales remained at a similar level compared to last year. And now, detailed look, or a deeper look, into each of our segments. We have got a summary of both operational macro and financial information for each of the segments, presented. We start with Upstream and Supply that delivered very solid performance with PLN 3.4 billion of EBITDA, an increase of PLN 4.3 billion year-on-year. I'm sorry, 240 megawatts. i'm sorry 240 megawatts Heat production increased by 9%, and that's primarily due to weather, specifically lower temperatures in May, and therefore, prolonged heating season. heat production increased by 9% and that's primarily due to weather specifically lower temperatures in may and therefore prolonged heating season And this also had a significant impact on the gas distribution volumes. and this also had a significant impact on the gas distribution volumes Gas distribution volumes grew by 7% increase, and 7% increase in retail gas sales. gas distribution volumes grew by 7% increase and 7% increase in retail gas sales Retail fuel sales remained at a similar level compared to last year. retail fuel sales remained at a similar level compared to last year And now, detailed look, or a deeper look, into each of our segments. and now detailed look or a deeper look into each of our segments We have got a summary of both operational macro and financial information for each of the segments, presented. we have got a summary of both operational macro and financial information for each of the segments presented We start with Upstream and Supply that delivered very solid performance with PLN 3.4 billion of EBITDA, an increase of PLN 4.3 billion year-on-year. we start with upstream and supply that delivered very solid performance with pln 3.4 billion of ebitda an increase of pln 4.3 billion year-on-year And in the second quarter, we were already in the second quarter of this year, we were already free of gas windfall charge. And in the same quarter of last year, windfall charge charged the PNL with PLN 7.7 billion. That's that basically explains the difference between the two quarters for the Polish upstream. So a significant factor as well, boosting the results in the Upstream and Supply segment, is the increase in gas quotations, gas prices, by over 10%. This was somewhat limited by a 20% drop in crude oil prices and the strengthening of Polish zloty against the US dollar and Norwegian krone. EBITDA generated from oil and gas wholesales trading amounted to almost PLN 4,400 million. And in the second quarter, we were already in the second quarter of this year, we were already free of gas windfall charge. and in the second quarter we were already in the second quarter of this year we were already free of gas windfall charge And in the same quarter of last year, windfall charge charged the PNL with PLN 7.7 billion. and in the same quarter of last year windfall charge charged the pnl with pln 7.7 billion That's that basically explains the difference between the two quarters for the Polish upstream. that's that basically explains the difference between the two quarters for the polish upstream So a significant factor as well, boosting the results in the Upstream and Supply segment, is the increase in gas quotations, gas prices, by over 10%. so a significant factor as well boosting the results in the upstream and supply segment is the increase in gas quotations gas prices by over 10% This was somewhat limited by a 20% drop in crude oil prices and the strengthening of Polish zloty against the US dollar and Norwegian krone. this was somewhat limited by a 20% drop in crude oil prices and the strengthening of polish zloty against the us dollar and norwegian krone EBITDA generated from oil and gas wholesales trading amounted to almost PLN 4,400 million. ebitda generated from oil and gas wholesales trading amounted to almost pln 4,400 million Compared to the second quarter of last year, margins on wholesale gas sales deteriorated, the spreads simply narrowed, which despite higher sales volumes, was the main reason for the decrease in that business line. Now, our focus in Upstream and Supply remains firmly on maximizing value, efficient production, and growing sales volumes. Now, moving on to Downstream. Downstream's segment EBITDA LIFO was PLN 2.2 billion, down by PLN 0.6 billion. Both, the refining and petrochemical business lines have declined, but that is primarily due to a more challenging macroeconomic environment already mentioned. The refining margins with the differential deteriorated, decreased by 13%, and petrochemical margins by a strong 21%. Unlike the previous year, there were no positive one-offs, no benefits to the results from that. Compared to the second quarter of last year, margins on wholesale gas sales deteriorated, the spreads simply narrowed, which despite higher sales volumes, was the main reason for the decrease in that business line. compared to the second quarter of last year margins on wholesale gas sales deteriorated the spreads simply narrowed which despite higher sales volumes was the main reason for the decrease in that business line Now, our focus in Upstream and Supply remains firmly on maximizing value, efficient production, and growing sales volumes. now our focus in upstream and supply remains firmly on maximizing value efficient production and growing sales volumes Now, moving on to Downstream. now moving on to downstream Downstream's segment EBITDA LIFO was PLN 2.2 billion, down by PLN 0.6 billion. downstream's segment ebitda lifo was pln 2.2 billion down by pln 0.6 billion Both, the refining and petrochemical business lines have declined, but that is primarily due to a more challenging macroeconomic environment already mentioned. both the refining and petrochemical business lines have declined but that is primarily due to a more challenging macroeconomic environment already mentioned The refining margins with the differential deteriorated, decreased by 13%, and petrochemical margins by a strong 21%. the refining margins with the differential deteriorated decreased by 13% and petrochemical margins by a strong 21% Unlike the previous year, there were no positive one-offs, no benefits to the results from that. unlike the previous year there were no positive one-offs no benefits to the results from that As a reminder, in the second quarter of last year, we received over PLN 400 million compensation for H-Oil unit shutdown. As mentioned before, in the refining business, we maintained sales volumes, sales volumes. However, in the petrochemicals business, we recorded a decline, and that is due to oversupply of products coming from the U.S. and China, but also disruptions at Anwil that impacted the availability of petrochemical units. The Energy segment coming next. To summarize, we see a story of expansion and efficiency here. Energy segment generated PLN 2.3 billion of EBITDA, up of PLN 0.4 billion year-on-year, and that improved results come from gas and electricity distribution largely. Those were driven by volumes growth, particularly in the gas distribution, we mentioned 12%. As a reminder, in the second quarter of last year, we received over PLN 400 million compensation for H-Oil unit shutdown. as a reminder in the second quarter of last year we received over pln 400 million compensation for h-oil unit shutdown As mentioned before, in the refining business, we maintained sales volumes, sales volumes. as mentioned before in the refining business we maintained sales volumes sales volumes However, in the petrochemicals business, we recorded a decline, and that is due to oversupply of products coming from the U.S. and China, but also disruptions at Anwil that impacted the availability of petrochemical units. however in the petrochemicals business we recorded a decline and that is due to oversupply of products coming from the u.s and china but also disruptions at anwil that impacted the availability of petrochemical units The Energy segment coming next. the energy segment coming next To summarize, we see a story of expansion and efficiency here. to summarize we see a story of expansion and efficiency here Energy segment generated PLN 2.3 billion of EBITDA, up of PLN 0.4 billion year-on-year, and that improved results come from gas and electricity distribution largely. energy segment generated pln 2.3 billion of ebitda up of pln 0.4 billion year-on-year and that improved results come from gas and electricity distribution largely Those were driven by volumes growth, particularly in the gas distribution, we mentioned 12%. those were driven by volumes growth particularly in the gas distribution we mentioned 12% There's also a significant positive contribution of conventional energy business that grew by primarily due to higher demand from the operator, from the grid operator, while the growing role of the renewables is also worth noting here. In the second quarter, our renewables generated 0.3 TWh more electricity than a year ago. Consumers and Products concludes the segment discussion. Consumers and Products segment generated PLN 2 billion of EBITDA, similar to the first quarter of 2025. And that, on a side note, that speaks to counter-cyclicality of the two components of our Consumers and Products business. The contribution of fuel and utility businesses in this quarter was almost even. There's also a significant positive contribution of conventional energy business that grew by primarily due to higher demand from the operator, from the grid operator, while the growing role of the renewables is also worth noting here. there's also a significant positive contribution of conventional energy business that grew by primarily due to higher demand from the operator from the grid operator while the growing role of the renewables is also worth noting here In the second quarter, our renewables generated 0.3 TWh more electricity than a year ago. in the second quarter our renewables generated 0.3 twh more electricity than a year ago Consumers and Products concludes the segment discussion. consumers and products concludes the segment discussion Consumers and Products segment generated PLN 2 billion of EBITDA, similar to the first quarter of 2025. consumers and products segment generated pln 2 billion of ebitda similar to the first quarter of 2025 And that, on a side note, that speaks to counter-cyclicality of the two components of our Consumers and Products business. and that on a side note that speaks to counter-cyclicality of the two components of our consumers and products business The contribution of fuel and utility businesses in this quarter was almost even. the contribution of fuel and utility businesses in this quarter was almost even Sales and fuel, of fuels were similar to those of last year in the second quarter of 2024. We also achieved higher non-fuel margins in all markets and increased profitability in our international operations. The results of retail gas grew significantly on the back of higher market demand that's related to the already mentioned lower temperatures and prolonged heating season, but also higher demand coming from our industrial clients. Investments. In the first half of 2025, we spent almost PLN 14 billion for investments, which represented roughly 40% of our planned capital expenditure. And so, given that we expect the acceleration in the project execution, in the roadmap execution, in the second half year, we maintain our CapEx forecast of roughly PLN 35 billion, probably the 35 billion being at the top range of our expectation. Sales and fuel, of fuels were similar to those of last year in the second quarter of 2024. sales and fuel of fuels were similar to those of last year in the second quarter of 2024 We also achieved higher non-fuel margins in all markets and increased profitability in our international operations. we also achieved higher non-fuel margins in all markets and increased profitability in our international operations The results of retail gas grew significantly on the back of higher market demand that's related to the already mentioned lower temperatures and prolonged heating season, but also higher demand coming from our industrial clients. the results of retail gas grew significantly on the back of higher market demand that's related to the already mentioned lower temperatures and prolonged heating season but also higher demand coming from our industrial clients Investments. investments In the first half of 2025, we spent almost PLN 14 billion for investments, which represented roughly 40% of our planned capital expenditure. in the first half of 2025 we spent almost pln 14 billion for investments which represented roughly 40% of our planned capital expenditure And so, given that we expect the acceleration in the project execution, in the roadmap execution, in the second half year, we maintain our CapEx forecast of roughly PLN 35 billion, probably the 35 billion being at the top range of our expectation. and so given that we expect the acceleration in the project execution in the roadmap execution in the second half year we maintain our capex forecast of roughly pln 35 billion probably the 35 billion being at the top range of our expectation The 40% of progress at the end of the second quarter is very typical to the previous year's trajectory of delivering our annual CapEx plans. In the next two pages, we will focus on financial standing. In our strategy, you might remember in our strategic discussions, we emphasized the need for a proper approach towards financing of our investment projects and also ongoing operations. We also identified the need for responsible and effective capital allocation as one of the key pillars of our strategy. The 40% of progress at the end of the second quarter is very typical to the previous year's trajectory of delivering our annual CapEx plans. the 40% of progress at the end of the second quarter is very typical to the previous year's trajectory of delivering our annual capex plans In the next two pages, we will focus on financial standing. in the next two pages we will focus on financial standing In our strategy, you might remember in our strategic discussions, we emphasized the need for a proper approach towards financing of our investment projects and also ongoing operations. in our strategy you might remember in our strategic discussions we emphasized the need for a proper approach towards financing of our investment projects and also ongoing operations We also identified the need for responsible and effective capital allocation as one of the key pillars of our strategy. we also identified the need for responsible and effective capital allocation as one of the key pillars of our strategy And therefore, during the second quarter, we completed our functional financing strategy that targets ensuring financial liquidity, especially taking into account the complexity of our operations and the increasing volatility of environment, but also financing development and value growth of the group. All of which, while maintaining financial ratios at the level defined in the strategy, and let me just briefly remind you that the maximum leverage we expect or allow is probably better to say is 2.0 of net debt to EBITDA. And as a result of our policy update, in the first half of 2025, we managed to complete significant milestones. And therefore, during the second quarter, we completed our functional financing strategy that targets ensuring financial liquidity, especially taking into account the complexity of our operations and the increasing volatility of environment, but also financing development and value growth of the group. and therefore during the second quarter we completed our functional financing strategy that targets ensuring financial liquidity especially taking into account the complexity of our operations and the increasing volatility of environment but also financing development and value growth of the group All of which, while maintaining financial ratios at the level defined in the strategy, and let me just briefly remind you that the maximum leverage we expect or allow is probably better to say is 2.0 of net debt to EBITDA. all of which while maintaining financial ratios at the level defined in the strategy and let me just briefly remind you that the maximum leverage we expect or allow is probably better to say is 2.0 of net debt to ebitda And as a result of our policy update, in the first half of 2025, we managed to complete significant milestones. and as a result of our policy update in the first half of 2025 we managed to complete significant milestones At the very beginning of the half year, we issued bonds worth of $1.25 billion US dollar dedicated to the US market, and then towards the end of the half year, we issued green Eurobonds worth EUR 600 million, specifically dedicated to finance the energy transition. We have also successfully applied for non-refundable support to finance our hydrogen projects development, worth close to PLN 1.7 billion Polish zloty, and over PLN 1 billion of support for gas smart metering and expansion and modernization of our gas network in Poland. At the very beginning of the half year, we issued bonds worth of $1.25 billion US dollar dedicated to the US market, and then towards the end of the half year, we issued green Euro bonds worth EUR 600 million, specifically dedicated to finance the energy transition. at the very beginning of the half year we issued bonds worth of $1.25 billion us dollar dedicated to the us market and then towards the end of the half year we issued green euro bonds worth eur 600 million specifically dedicated to finance the energy transition We have also successfully applied for non-refundable support to finance our hydrogen projects development, worth close to PLN 1.7 billion Polish zloty, and over PLN 1 billion of support for gas smart metering and expansion and modernization of our gas network in Poland. we have also successfully applied for non-refundable support to finance our hydrogen projects development worth close to pln 1.7 billion polish zloty and over pln 1 billion of support for gas smart metering and expansion and modernization of our gas network in poland Moreover, we also signed significant loan agreements with European Investment Bank of PLN 3.5 billion and a loan of up to PLN 7.6 billion with the Polish Development Bank as part of the National Recovery and Resilience Plan for our Polish audience, KPO. There is still more to come. We're working on a few very efficient, but also very exciting projects related to asset-backed loans for development projects, among others. Stay tuned, there's more on that coming up in the next quarters. And by doing this, we're building a portfolio of diversified sources of financing. We're strengthening... while strengthening also our presence in the financial markets. And now a bit more on the financials and our current financial standing. Moreover, we also signed significant loan agreements with European Investment Bank of PLN 3.5 billion and a loan of up to PLN 7.6 billion with the Polish Development Bank as part of the National Recovery and Resilience Plan for our Polish audience, KPO. moreover we also signed significant loan agreements with european investment bank of pln 3.5 billion and a loan of up to pln 7.6 billion with the polish development bank as part of the national recovery and resilience plan for our polish audience kpo There is still more to come. there is still more to come We're working on a few very efficient, but also very exciting projects related to asset-backed loans for development projects, among others. we're working on a few very efficient but also very exciting projects related to asset-backed loans for development projects among others Stay tuned, there's more on that coming up in the next quarters. stay tuned there's more on that coming up in the next quarters And by doing this, we're building a portfolio of diversified sources of financing. and by doing this we're building a portfolio of diversified sources of financing We're strengthening... while strengthening also our presence in the financial markets. we're strengthening while strengthening also our presence in the financial markets And now a bit more on the financials and our current financial standing. and now a bit more on the financials and our current financial standing In terms of net debt to EBITDA, we mentioned at the beginning, we stand at a very similar level, as to the one recorded for the first quarter. To be very precise, our net debt to EBITDA covenant was, minus 0.08 times, negligible. And this confirms, obviously, very good position, gives us, a very comfortable position, ahead of, ahead of the dividend payout and ahead of the second half year intensification of our strategic, roadmap delivery. At the end of the second quarter, we had PLN 5.5 billion of net cash, and we recorded in the first half, PLN 6.8 billion decrease in working capital, requirements related, to, to lower commodity prices. In terms of net debt to EBITDA, we mentioned at the beginning, we stand at a very similar level, as to the one recorded for the first quarter. in terms of net debt to ebitda we mentioned at the beginning we stand at a very similar level as to the one recorded for the first quarter To be very precise, our net debt to EBITDA covenant was, minus 0.08 times, negligible. to be very precise our net debt to ebitda covenant was minus 0.08 times negligible And this confirms, obviously, very good position, gives us, a very comfortable position, ahead of, ahead of the dividend payout and ahead of the second half year intensification of our strategic, roadmap delivery. and this confirms obviously very good position gives us a very comfortable position ahead of ahead of the dividend payout and ahead of the second half year intensification of our strategic roadmap delivery At the end of the second quarter, we had PLN 5.5 billion of net cash, and we recorded in the first half, PLN 6.8 billion decrease in working capital, requirements related, to, to lower commodity prices. at the end of the second quarter we had pln 5.5 billion of net cash and we recorded in the first half pln 6.8 billion decrease in working capital requirements related to to lower commodity prices In the first half year, we reduced the group's net debt by PLN 12.5 billion, and as a result of operational cash flow generation of around PLN 26 billion less the investments realized in the first half year of PLN 13 billion. And to conclude our outlook for the year for 2025 as compared to 2024, what is specifically worth mentioning and underlining at this stage is definitely a favorable environment in the refining market. We are seeing the macro environment supporting this part of our business, and we can expect that the refining margins for the year should be at a very similar level to the last year, which is significantly better than what we expected at the beginning of the year. In the first half year, we reduced the group's net debt by PLN 12.5 billion, and as a result of operational cash flow generation of around PLN 26 billion less the investments realized in the first half year of PLN 13 billion. in the first half year we reduced the group's net debt by pln 12.5 billion and as a result of operational cash flow generation of around pln 26 billion less the investments realized in the first half year of pln 13 billion And to conclude our outlook for the year for 2025 as compared to 2024, what is specifically worth mentioning and underlining at this stage is definitely a favorable environment in the refining market. and to conclude our outlook for the year for 2025 as compared to 2024 what is specifically worth mentioning and underlining at this stage is definitely a favorable environment in the refining market We are seeing the macro environment supporting this part of our business, and we can expect that the refining margins for the year should be at a very similar level to the last year, which is significantly better than what we expected at the beginning of the year. we are seeing the macro environment supporting this part of our business and we can expect that the refining margins for the year should be at a very similar level to the last year which is significantly better than what we expected at the beginning of the year Regarding the remaining factors, there are no significant changes here, and we, and as such, we remain comfortable with the current consensus, analyst consensus for the EBITDA of 2025. This concludes the presentation. I will now open the floor to your questions, and we will be happy to take your questions in the Q&A session. Kuba, over to you. Regarding the remaining factors, there are no significant changes here, and we, and as such, we remain comfortable with the current consensus, analyst consensus for the EBITDA of 2025. regarding the remaining factors there are no significant changes here and we and as such we remain comfortable with the current consensus analyst consensus for the ebitda of 2025 This concludes the presentation. this concludes the presentation I will now open the floor to your questions, and we will be happy to take your questions in the Q&A session. i will now open the floor to your questions and we will be happy to take your questions in the q&a session Kuba, over to you. kuba over to you

Speaker 3: Thank you, Magda. Well, I saw you already jumping in with questions. So as usual, we'll start with first come, first served. So the first one to be served is Łukasz from BOŚ. Please, Łukasz, the floor is yours. However, please limit yourself with questions up to two, then we can allow for follow-ups. That's gonna be easier to serve. Thank you. Thank you, Magda. thank you magda Well, I saw you already jumping in with questions. well i saw you already jumping in with questions So as usual, we'll start with first come, first served. so as usual we'll start with first come first served So the first one to be served is Łukasz from BOŚ. so the first one to be served is łukasz from boś Please, Łukasz, the floor is yours. please łukasz the floor is yours However, please limit yourself with questions up to two, then we can allow for follow-ups. however please limit yourself with questions up to two then we can allow for follow-ups That's gonna be easier to serve. that's gonna be easier to serve Thank you. thank you

Speaker 14: Okay. Hello, Łukasz Prokopiuk from BOŚ. Can you hear me? Okay. okay Hello, Łukasz Prokopiuk from BOŚ. hello łukasz prokopiuk from boś Can you hear me? can you hear me

Speaker 3: ... Yeah? ... Yeah? yeah

Speaker 5: Yes, we can. Yes, we can. yes we can

Speaker 14: Okay. Okay. okay

Speaker 5: I will go. I will go. i will go

Speaker 14: Two, two questions on update on Venture Global. The first one on the arbitration case against Venture Global, and can you, can you give us any update, when do you expect any ruling? And can you comment on the recent losing of Shell against Venture Global in, in its arbitration? That's the first question. And the second, how much, LNG from Henry, quoted on Henry Hub do we expect this year, and how much do we expect next year? Those are the first two questions. Thank you. Two, two questions on update on Venture Global. two two questions on update on venture global The first one on the arbitration case against Venture Global, and can you, can you give us any update, when do you expect any ruling? the first one on the arbitration case against venture global and can you can you give us any update when do you expect any ruling And can you comment on the recent losing of Shell against Venture Global in, in its arbitration? and can you comment on the recent losing of shell against venture global in in its arbitration That's the first question. that's the first question And the second, how much, LNG from Henry, quoted on Henry Hub do we expect this year, and how much do we expect next year? and the second how much lng from henry quoted on henry hub do we expect this year and how much do we expect next year Those are the first two questions. those are the first two questions Thank you. thank you

Speaker 5: Let me first start with Venture Global and the arbitration case. We indeed saw news coming about the results of Shell arbitration case. Very difficult for us to comment on that particular case and that particular verdict. Ours is expected or some news from the arbitration court is expected at the beginning of next year when the first sitting should take place. Therefore, I think we will need to simply patiently wait till the beginning of next year to reveal some more information and news about the expected outcomes. When it comes to the LNG delivery, we started receiving cargos from Calcasieu Pass. In the first half year, we received four, if I'm not mistaken. Four. Three. Let me first start with Venture Global and the arbitration case. let me first start with venture global and the arbitration case We indeed saw news coming about the results of Shell arbitration case. we indeed saw news coming about the results of shell arbitration case Very difficult for us to comment on that particular case and that particular verdict. very difficult for us to comment on that particular case and that particular verdict Ours is expected or some news from the arbitration court is expected at the beginning of next year when the first sitting should take place. ours is expected or some news from the arbitration court is expected at the beginning of next year when the first sitting should take place Therefore, I think we will need to simply patiently wait till the beginning of next year to reveal some more information and news about the expected outcomes. therefore i think we will need to simply patiently wait till the beginning of next year to reveal some more information and news about the expected outcomes When it comes to the LNG delivery, we started receiving cargos from Calcasieu Pass. when it comes to the lng delivery we started receiving cargos from calcasieu pass In the first half year, we received four, if I'm not mistaken. in the first half year we received four if i'm not mistaken Four. four Three. three All right, thank you, Marcin. But I see that Marcin has got details in front of him. So, Marcin, let me pass over to you. All right, thank you, Marcin. all right thank you marcin But I see that Marcin has got details in front of him. but i see that marcin has got details in front of him So, Marcin, let me pass over to you. so marcin let me pass over to you

Speaker 6: Yes, thank you very much for this question. In fact, the Venture Global started its shipping at the end of April. And so, we are expecting this volumes, of course, to grow in forthcoming quarters. We are not disclosing our plan for exact volume that we are willing to receive right now. But, you have our estimations about. You have our details around about the contract that it states it is up to 2 billion cubic meters of LNG that may be delivered from Calcasieu Pass per annum. So, we expect this to be fulfilled by the Venture Global. Yes, thank you very much for this question. yes thank you very much for this question In fact, the Venture Global started its shipping at the end of April. in fact the venture global started its shipping at the end of april And so, we are expecting this volumes, of course, to grow in forthcoming quarters. and so we are expecting this volumes of course to grow in forthcoming quarters We are not disclosing our plan for exact volume that we are willing to receive right now. we are not disclosing our plan for exact volume that we are willing to receive right now But, you have our estimations about. but you have our estimations about You have our details around about the contract that it states it is up to 2 billion cubic meters of LNG that may be delivered from Calcasieu Pass per annum. you have our details around about the contract that it states it is up to 2 billion cubic meters of lng that may be delivered from calcasieu pass per annum So, we expect this to be fulfilled by the Venture Global. so we expect this to be fulfilled by the venture global

Speaker 14: Okay, thank you. But can you perhaps, if you cannot give us any numbers, imports numbers, but could you please tell us how much % growth do you expect next year of imports compared to this year? Okay, thank you. okay thank you But can you perhaps, if you cannot give us any numbers, imports numbers, but could you please tell us how much % growth do you expect next year of imports compared to this year? but can you perhaps if you cannot give us any numbers imports numbers but could you please tell us how much % growth do you expect next year of imports compared to this year

Speaker 6: You mean only coming from Calcasieu Pass, right? You mean only coming from Calcasieu Pass, right? you mean only coming from calcasieu pass right

Speaker 14: LNG based on Henry Hub, like, the Cheniere contracts, too. LNG based on Henry Hub, like, the Cheniere contracts, too. lng based on henry hub like the cheniere contracts too

Speaker 5: Mm-hmm. Mm-hmm. mm-hmm

Speaker 6: Well, in total, we assume that both of the contracts that we have for Henry Hub, starting from 2026, will be fully utilized. So therefore, it means almost 2 billion cubic meters coming from Cheniere, and 2 additional billion cubic meters coming from Venture Global, Calcasieu Pass. Well, in total, we assume that both of the contracts that we have for Henry Hub, starting from 2026, will be fully utilized. well in total we assume that both of the contracts that we have for henry hub starting from 2026 will be fully utilized So therefore, it means almost 2 billion cubic meters coming from Cheniere, and 2 additional billion cubic meters coming from Venture Global, Calcasieu Pass. so therefore it means almost 2 billion cubic meters coming from cheniere and 2 additional billion cubic meters coming from venture global calcasieu pass

Speaker 14: Okay, but you have another $5 billion contract with Venture Global, which was supposed to be coming next year, but, that's the reason I'm asking the question: Do you expect anything from this contract? Okay, but you have another $5 billion contract with Venture Global, which was supposed to be coming next year, but, that's the reason I'm asking the question: Do you expect anything from this contract? okay but you have another $5 billion contract with venture global which was supposed to be coming next year but that's the reason i'm asking the question do you expect anything from this contract

Speaker 6: It depends, of course, because the second part of the contract with Venture Global is from different terminal. It's Plaquemines, and we are cautious about when this contract will start, based similarly, like, in the case of Calcasieu Pass. We need to have the confirmation that the terminal will be exporting. It depends, of course, because the second part of the contract with Venture Global is from different terminal. it depends of course because the second part of the contract with venture global is from different terminal It's Plaquemines, and we are cautious about when this contract will start, based similarly, like, in the case of Calcasieu Pass. it's plaquemines and we are cautious about when this contract will start based similarly like in the case of calcasieu pass We need to have the confirmation that the terminal will be exporting. we need to have the confirmation that the terminal will be exporting

Speaker 3: Well, to sum up, we have the contract valid. However, we're cautious on volume confirmation, as we have some experience that proved us to be correct in being cautious. That's, I guess, I should be summarizing this. Maybe we can move on to the second person, Tomasz. Well, to sum up, we have the contract valid. well to sum up we have the contract valid However, we're cautious on volume confirmation, as we have some experience that proved us to be correct in being cautious. however we're cautious on volume confirmation as we have some experience that proved us to be correct in being cautious That's, I guess, I should be summarizing this. that's i guess i should be summarizing this Maybe we can move on to the second person, Tomasz. maybe we can move on to the second person tomasz

Speaker 14: Thank you. Thank you. thank you

Speaker 3: Tomasz? It's you. Tomasz? tomasz It's you. it's you

Speaker 11: Yes, hello. This is Tomasz Szkurlat, Santander. Two questions. The first one is on CapEx, and I'm just wondering, what are the odds of you underspending this year versus your budget? And also, when I look at your strategy and see this CapEx figure between 43-47 is the average for 2025-2027, I was just wondering whether already right now you have the project in your pipeline that could next year lift your CapEx figure to this higher level? So this was the first one, and the second is on working capital. Second quarter was another quarter where you released quite a lot of money from your working capital. So I'm wondering, what do you expect for the second half of the year? And if you could... Yes, hello. yes hello This is Tomasz Szkurlat, Santander. this is tomasz szkurlat santander Two questions. two questions The first one is on CapEx, and I'm just wondering, what are the odds of you underspending this year versus your budget? the first one is on capex and i'm just wondering what are the odds of you underspending this year versus your budget And also, when I look at your strategy and see this CapEx figure between 43-47 is the average for 2025-2027, I was just wondering whether already right now you have the project in your pipeline that could next year lift your CapEx figure to this higher level? and also when i look at your strategy and see this capex figure between 43-47 is the average for 2025-2027 i was just wondering whether already right now you have the project in your pipeline that could next year lift your capex figure to this higher level So this was the first one, and the second is on working capital. so this was the first one and the second is on working capital Second quarter was another quarter where you released quite a lot of money from your working capital. second quarter was another quarter where you released quite a lot of money from your working capital So I'm wondering, what do you expect for the second half of the year? so i'm wondering what do you expect for the second half of the year And if you could... and if you could Tell us more about the drivers of working capital. What was behind the release? I also remember you saying last time that you were talking about some structural actions aiming at release of cash from working capital. If you could give us an update on that one. Thank you. Tell us more about the drivers of working capital. tell us more about the drivers of working capital What was behind the release? what was behind the release I also remember you saying last time that you were talking about some structural actions aiming at release of cash from working capital. i also remember you saying last time that you were talking about some structural actions aiming at release of cash from working capital If you could give us an update on that one. if you could give us an update on that one Thank you. thank you

Speaker 5: Thank you, Tomasz. Let me start with CapEx and what are the odds of us on underspending on the budget. I mentioned in our CapEx page here that the PLN 35 billion is rather towards the upper range of our expectations, and there are still risks around the delivery, but more around phasing. So it might be that some parts of the CapEx. There are simply a lot of moving parts, and it might happen that some parts of our CapEx spend will shift into 2026. But we are pushing forward, and our teams are absolutely committed to deliver. Thank you, Tomasz. thank you tomasz Let me start with CapEx and what are the odds of us on underspending on the budget. let me start with capex and what are the odds of us on underspending on the budget I mentioned in our CapEx page here that the PLN 35 billion is rather towards the upper range of our expectations, and there are still risks around the delivery, but more around phasing. i mentioned in our capex page here that the pln 35 billion is rather towards the upper range of our expectations and there are still risks around the delivery but more around phasing So it might be that some parts of the CapEx. so it might be that some parts of the capex There are simply a lot of moving parts, and it might happen that some parts of our CapEx spend will shift into 2026. there are simply a lot of moving parts and it might happen that some parts of our capex spend will shift into 2026 But we are pushing forward, and our teams are absolutely committed to deliver. but we are pushing forward and our teams are absolutely committed to deliver We introduced also a more flexible internally tool to reallocate CapEx from the areas that are either being delayed or unsuccessful to areas that can deploy teams to deliver new CapEx initiatives or projects like, for example, in electricity distribution. So that work is ongoing, and we strive to deliver on the 35, but whether there is a risk of some bits moving into the first quarter of 2026, there still are, and we are actively managing those risks. You also asked about projects going forward in the pipeline for 26-28, and how it compares to the strategy. We introduced also a more flexible internally tool to reallocate CapEx from the areas that are either being delayed or unsuccessful to areas that can deploy teams to deliver new CapEx initiatives or projects like, for example, in electricity distribution. we introduced also a more flexible internally tool to reallocate capex from the areas that are either being delayed or unsuccessful to areas that can deploy teams to deliver new capex initiatives or projects like for example in electricity distribution So that work is ongoing, and we strive to deliver on the 35, but whether there is a risk of some bits moving into the first quarter of 2026, there still are, and we are actively managing those risks. so that work is ongoing and we strive to deliver on the 35 but whether there is a risk of some bits moving into the first quarter of 2026 there still are and we are actively managing those risks You also asked about projects going forward in the pipeline for 26-28, and how it compares to the strategy. you also asked about projects going forward in the pipeline for 26-28 and how it compares to the strategy Just a quick reminder, the numbers, the figures we see in the strategy include inorganic growth as well, so we include M&A projects, not only investment in our assets, i.e., organic growth. For the investments, I think that the typical investments, let's say, I think we've got very good visibility where the priorities are, and what new projects will be added into our strategic roadmap. Those are CCGTs in Gdańsk and Grudziądz, and also preparations for the offshore wind farms going forward. As additional, we also continue on the projects that you're seeing in our roadmap today as well. When it comes to inorganic growth, there is a rich pipeline of projects. Just a quick reminder, the numbers, the figures we see in the strategy include inorganic growth as well, so we include M&A projects, not only investment in our assets, i.e., organic growth. just a quick reminder the numbers the figures we see in the strategy include inorganic growth as well so we include m&a projects not only investment in our assets i.e organic growth For the investments, I think that the typical investments, let's say, I think we've got very good visibility where the priorities are, and what new projects will be added into our strategic roadmap. for the investments i think that the typical investments let's say i think we've got very good visibility where the priorities are and what new projects will be added into our strategic roadmap Those are CCGTs in Gdańsk and Grudziądz, and also preparations for the offshore wind farms going forward. those are ccgts in gdańsk and grudziądz and also preparations for the offshore wind farms going forward As additional, we also continue on the projects that you're seeing in our roadmap today as well. as additional we also continue on the projects that you're seeing in our roadmap today as well When it comes to inorganic growth, there is a rich pipeline of projects. when it comes to inorganic growth there is a rich pipeline of projects You've probably noticed, and we're also a little bit looking forward to the next quarters, 'cause we haven't completed any significant transaction this year. But the pipeline is rich, and we hope to be able to communicate some good news in the coming quarters. So yes, that target is still in place or is still valid for us. And then, in terms of working capital, the decrease in working capital in the second quarter or in the first half year, 'cause we compare here end of quarter two versus end of 2024, was driven primarily by lower commodity prices. We do have a pipeline of initiatives that are supposed to support our working capital structurally going forward. You've probably noticed, and we're also a little bit looking forward to the next quarters, 'cause we haven't completed any significant transaction this year. you've probably noticed and we're also a little bit looking forward to the next quarters 'cause we haven't completed any significant transaction this year But the pipeline is rich, and we hope to be able to communicate some good news in the coming quarters. but the pipeline is rich and we hope to be able to communicate some good news in the coming quarters So yes, that target is still in place or is still valid for us. so yes that target is still in place or is still valid for us And then, in terms of working capital, the decrease in working capital in the second quarter or in the first half year, 'cause we compare here end of quarter two versus end of 2024, was driven primarily by lower commodity prices. and then in terms of working capital the decrease in working capital in the second quarter or in the first half year 'cause we compare here end of quarter two versus end of 2024 was driven primarily by lower commodity prices We do have a pipeline of initiatives that are supposed to support our working capital structurally going forward. we do have a pipeline of initiatives that are supposed to support our working capital structurally going forward But still, the largest impact on our working capital will always be from gas and crude oil, specifically prices. And we expect these to. We don't see any great volatility coming. I think there is a general expectation for the gas prices to remain to remain at the current levels, or or even more pressure coming on those gas prices. Crude oil prices recorded a midterm minimum, let's say, and there is no driver that would potentially or no discussed driver that would potentially reverse that trend. Of however, the volatility has been quite significant this year as well. But still, the largest impact on our working capital will always be from gas and crude oil, specifically prices. but still the largest impact on our working capital will always be from gas and crude oil specifically prices And we expect these to. and we expect these to We don't see any great volatility coming. we don't see any great volatility coming I think there is a general expectation for the gas prices to remain to remain at the current levels, or or even more pressure coming on those gas prices. i think there is a general expectation for the gas prices to remain to remain at the current levels or or even more pressure coming on those gas prices Crude oil prices recorded a midterm minimum, let's say, and there is no driver that would potentially or no discussed driver that would potentially reverse that trend. crude oil prices recorded a midterm minimum let's say and there is no driver that would potentially or no discussed driver that would potentially reverse that trend Of however, the volatility has been quite significant this year as well. of however the volatility has been quite significant this year as well During the second quarter itself, there was great volatility with tariffs announcements, with OPEC movements related to crude oil production. So a lot going on. We will observe going forward, but we don't expect any significant changes to the commodity prices that would drive some dramatic changes in the working capital needs. During the second quarter itself, there was great volatility with tariffs announcements, with OPEC movements related to crude oil production. during the second quarter itself there was great volatility with tariffs announcements with opec movements related to crude oil production So a lot going on. so a lot going on We will observe going forward, but we don't expect any significant changes to the commodity prices that would drive some dramatic changes in the working capital needs. we will observe going forward but we don't expect any significant changes to the commodity prices that would drive some dramatic changes in the working capital needs

Speaker 11: Thank you. Thank you. thank you

Speaker 3: Piotr, the floor is yours. Citi. Piotr, the floor is yours. piotr the floor is yours Citi. citi

Speaker 9: Good morning, everybody, or good afternoon. So I have two questions. There are some headlines discussing that you are considering your options for Energa. Can you please tell us a little bit, even briefly, what is at stake here? Like, there's press articles talking that this subsidiary wants to raise capital and put more projects into operations. There's a number of politicians talking in press also, what else they want to achieve. And you originally, I remember, ORLEN announced tender offer for 100%. So can you please tell us what options you will be briefly discussing with the advisor, as this headline suggested you hired one? And second one, could you please describe-... Good morning, everybody, or good afternoon. good morning everybody or good afternoon So I have two questions. so i have two questions There are some headlines discussing that you are considering your options for Energa. there are some headlines discussing that you are considering your options for energa Can you please tell us a little bit, even briefly, what is at stake here? can you please tell us a little bit even briefly what is at stake here Like, there's press articles talking that this subsidiary wants to raise capital and put more projects into operations. like there's press articles talking that this subsidiary wants to raise capital and put more projects into operations There's a number of politicians talking in press also, what else they want to achieve. there's a number of politicians talking in press also what else they want to achieve And you originally, I remember, ORLEN announced tender offer for 100%. and you originally i remember orlen announced tender offer for 100% So can you please tell us what options you will be briefly discussing with the advisor, as this headline suggested you hired one? so can you please tell us what options you will be briefly discussing with the advisor as this headline suggested you hired one And second one, could you please describe-... and second one could you please describe- Also help us understand where you stand on this Azoty PDH project, whether, I mean, you, I think, what's the latest, if you extended the term sheet or where we are? Also help us understand where you stand on this Azoty PDH project, whether, I mean, you, I think, what's the latest, if you extended the term sheet or where we are? also help us understand where you stand on this azoty pdh project whether i mean you i think what's the latest if you extended the term sheet or where we are

Speaker 5: Yeah. With regards to Energa, I think I will need to separate my answer from the public noise and focus on the facts. So the fact is, that we've got a significant energy group, a significant public energy group in Poland, that is traded on the Warsaw Stock Exchange, and there are minority shareholders that have expressed their dissatisfaction with the fact that ORLEN has got a majority stake with Energa. We tried tendering for Energa shares in the past, that was unsuccessful, and we are still ORLEN on its corporate balance sheet finances the development plan of Energa and all the major investment projects. Yeah. yeah With regards to Energa, I think I will need to separate my answer from the public noise and focus on the facts. with regards to energa i think i will need to separate my answer from the public noise and focus on the facts So the fact is, that we've got a significant energy group, a significant public energy group in Poland, that is traded on the Warsaw Stock Exchange, and there are minority shareholders that have expressed their dissatisfaction with the fact that ORLEN has got a majority stake with Energa. so the fact is that we've got a significant energy group a significant public energy group in poland that is traded on the warsaw stock exchange and there are minority shareholders that have expressed their dissatisfaction with the fact that orlen has got a majority stake with energa We tried tendering for Energa shares in the past, that was unsuccessful, and we are still ORLEN on its corporate balance sheet finances the development plan of Energa and all the major investment projects. we tried tendering for energa shares in the past that was unsuccessful and we are still orlen on its corporate balance sheet finances the development plan of energa and all the major investment projects And we obviously need to find the best way going forward to deliver on our strategy objectives in terms of energy segment, and to support producing returns to our shareholders. So we asked a reputable advisory firms to propose solutions that we would potentially implement going forward. The reason for hiring an advisor here is that we simply want to have an independent view. We want to analyze any possible options. And we obviously need to find the best way going forward to deliver on our strategy objectives in terms of energy segment, and to support producing returns to our shareholders. and we obviously need to find the best way going forward to deliver on our strategy objectives in terms of energy segment and to support producing returns to our shareholders So we asked a reputable advisory firms to propose solutions that we would potentially implement going forward. so we asked a reputable advisory firms to propose solutions that we would potentially implement going forward The reason for hiring an advisor here is that we simply want to have an independent view. the reason for hiring an advisor here is that we simply want to have an independent view We want to analyze any possible options. we want to analyze any possible options So even in theory, if there is an option that is potentially feasible, we want that to be analyzed, put on the table, and then together with Energa and Energa stakeholders, decide on the future of us and where the synergies are simply to be delivered. And when it comes to Azoty PDH, you probably have noticed an announcement from Grupa Azoty that we decided not to put a binding offer and not to proceed with a share transaction. That is indeed true. However, we are still committed to the project, and we see the asset as a high-quality asset. Our interest now that we are exploring is in the logistical assets. So even in theory, if there is an option that is potentially feasible, we want that to be analyzed, put on the table, and then together with Energa and Energa stakeholders, decide on the future of us and where the synergies are simply to be delivered. so even in theory if there is an option that is potentially feasible we want that to be analyzed put on the table and then together with energa and energa stakeholders decide on the future of us and where the synergies are simply to be delivered And when it comes to Azoty PDH, you probably have noticed an announcement from Grupa Azoty that we decided not to put a binding offer and not to proceed with a share transaction. and when it comes to azoty pdh you probably have noticed an announcement from grupa azoty that we decided not to put a binding offer and not to proceed with a share transaction That is indeed true. that is indeed true However, we are still committed to the project, and we see the asset as a high-quality asset. however we are still committed to the project and we see the asset as a high-quality asset Our interest now that we are exploring is in the logistical assets. our interest now that we are exploring is in the logistical assets There is a significant energy that we can deliver to ORLEN in the port, specifically propane reloading operations. We've got a propane port, smaller port, shallow waters port in Szczecin that is very close to Police. We could deliver propane on larger vessels to Police and then deliver on synergies related to logistical costs. That is clearly an interesting option that we are discussing with Grupa Azoty that can be combined with the needs of the PDH projects and that's something we are exploring going forward. There is a significant energy that we can deliver to ORLEN in the port, specifically propane reloading operations. there is a significant energy that we can deliver to orlen in the port specifically propane reloading operations We've got a propane port, smaller port, shallow waters port in Szczecin that is very close to Police. we've got a propane port smaller port shallow waters port in szczecin that is very close to police We could deliver propane on larger vessels to Police and then deliver on synergies related to logistical costs. we could deliver propane on larger vessels to police and then deliver on synergies related to logistical costs That is clearly an interesting option that we are discussing with Grupa Azoty that can be combined with the needs of the PDH projects and that's something we are exploring going forward. that is clearly an interesting option that we are discussing with grupa azoty that can be combined with the needs of the pdh projects and that's something we are exploring going forward

Speaker 9: What's going to happen with the PDH installation? Is it going to start or or? What's going to happen with the PDH installation? what's going to happen with the pdh installation Is it going to start or or? is it going to start or or

Speaker 5: There's enough capacity at the port to serve both purposes. There's enough capacity at the port to serve both purposes. there's enough capacity at the port to serve both purposes

Speaker 9: Okay. Thank you very much. Okay. okay Thank you very much. thank you very much

Speaker 3: Thank you, Piotr. Anna Kiszczak, UBS. Thank you, Piotr. thank you piotr Anna Kiszczak, UBS. anna kiszczak ubs

Speaker 1: Hi, I hope you can hear me. Thank you very much for the presentation. Several questions. First will be around the Litvínov outage, if you can provide some color on what is expected there, how fast it can be restarted, etc. And one around your estimates for the gas trading segment results in third quarter. Like, if you can provide some color of how are the trading margins looking currently? Thank you very much. Hi, I hope you can hear me. hi i hope you can hear me Thank you very much for the presentation. thank you very much for the presentation Several questions. several questions First will be around the Litvínov outage, if you can provide some color on what is expected there, how fast it can be restarted, etc. And one around your estimates for the gas trading segment results in third quarter. first will be around the litvínov outage if you can provide some color on what is expected there how fast it can be restarted etc and one around your estimates for the gas trading segment results in third quarter Like, if you can provide some color of how are the trading margins looking currently? like if you can provide some color of how are the trading margins looking currently Thank you very much. thank you very much

Speaker 5: Anna, there was an outage in Czech Republic that impacted our Litvínov plant in July. We managed to restart operations in Litvínov, but when restarted to full capacity, we noticed certain disruptions in our steam cracker units. As such, we decided to... or as a result, we decided to shut down the steam cracker that puts the refinery at minimum capacity. We are currently analyzing the reasons for those disruptions, and putting a plan together in order to eliminate and repair the unit. It is definitely a matter of weeks, not days, but there is still no final solution on the... or final plan on the table. Anna, there was an outage in Czech Republic that impacted our Litvínov plant in July. anna there was an outage in czech republic that impacted our litvínov plant in july We managed to restart operations in Litvínov, but when restarted to full capacity, we noticed certain disruptions in our steam cracker units. we managed to restart operations in litvínov but when restarted to full capacity we noticed certain disruptions in our steam cracker units As such, we decided to... or as a result, we decided to shut down the steam cracker that puts the refinery at minimum capacity. as such we decided to or as a result we decided to shut down the steam cracker that puts the refinery at minimum capacity We are currently analyzing the reasons for those disruptions, and putting a plan together in order to eliminate and repair the unit. we are currently analyzing the reasons for those disruptions and putting a plan together in order to eliminate and repair the unit It is definitely a matter of weeks, not days, but there is still no final solution on the... or final plan on the table. it is definitely a matter of weeks not days but there is still no final solution on the or final plan on the table Estimates on gas trading, just a quick reminder, we don't have a gas trading segment. We've got an upstream and supply segment that deals with supplying volumes to the markets and other segments. But I mentioned already that we have experienced narrowing spreads for the gas trading that should probably stabilize going forward, as the volatility in gas prices is also lower than the previous years. Therefore, that's probably to be expected. So, narrower spreads, but stabilized situation. Estimates on gas trading, just a quick reminder, we don't have a gas trading segment. estimates on gas trading just a quick reminder we don't have a gas trading segment We've got an upstream and supply segment that deals with supplying volumes to the markets and other segments. we've got an upstream and supply segment that deals with supplying volumes to the markets and other segments But I mentioned already that we have experienced narrowing spreads for the gas trading that should probably stabilize going forward, as the volatility in gas prices is also lower than the previous years. but i mentioned already that we have experienced narrowing spreads for the gas trading that should probably stabilize going forward as the volatility in gas prices is also lower than the previous years Therefore, that's probably to be expected. therefore that's probably to be expected So, narrower spreads, but stabilized situation. so narrower spreads but stabilized situation

Speaker 1: Thank you very much. Thank you very much. thank you very much

Speaker 3: Ricardo, please. Ricardo? Ricardo, please. ricardo please Ricardo? ricardo

Speaker 12: Hello. Yeah, Yeah, can you hear me? Hello. hello Yeah, Yeah, can you hear me? yeah yeah can you hear me

Speaker 3: Yeah. Yeah. yeah

Speaker 12: Sure. So first question that I have is on the olefin project. How things are going on your side, and should we continue to expect any sort of more visibility and more details, or by year end? And then the second question, it's on we've seen some announcements from China and South Korea on petchem, something on refining as well, potential capacity closure. Given how we've been seeing a challenging environment for petchems in Europe, do you think that if we go ahead and see some of those closures, that could help your margins? Or do you think it's more of a headline and nothing really changing on the fundamentals? Thank you. Sure. sure So first question that I have is on the olefin project. so first question that i have is on the olefin project How things are going on your side, and should we continue to expect any sort of more visibility and more details, or by year end? how things are going on your side and should we continue to expect any sort of more visibility and more details or by year end And then the second question, it's on we've seen some announcements from China and South Korea on petchem, something on refining as well, potential capacity closure. and then the second question it's on we've seen some announcements from china and south korea on petchem something on refining as well potential capacity closure Given how we've been seeing a challenging environment for petchems in Europe, do you think that if we go ahead and see some of those closures, that could help your margins? given how we've been seeing a challenging environment for petchems in europe do you think that if we go ahead and see some of those closures that could help your margins Or do you think it's more of a headline and nothing really changing on the fundamentals? or do you think it's more of a headline and nothing really changing on the fundamentals Thank you. thank you

Speaker 5: I think I will start with a comment that for us, petrochemicals production is not really a standalone business. It's part of an integrated value chain. So we still benefit from petrochemicals production by increasing throughput at our refineries. And that's a critical comment, as compared to other players in the market that are announcing closures, and because they don't benefit from the integrated value chain. Whether those closures will support our margins, we surely hope so, and we expect some improvement, but we're also very cautious with those expectations. So none of our internal plans includes any optimistic expectation on the cycle trend reverse. We see structural changes in the market when it comes to feedstock. I think I will start with a comment that for us, petrochemicals production is not really a standalone business. i think i will start with a comment that for us petrochemicals production is not really a standalone business It's part of an integrated value chain. it's part of an integrated value chain So we still benefit from petrochemicals production by increasing throughput at our refineries. so we still benefit from petrochemicals production by increasing throughput at our refineries And that's a critical comment, as compared to other players in the market that are announcing closures, and because they don't benefit from the integrated value chain. and that's a critical comment as compared to other players in the market that are announcing closures and because they don't benefit from the integrated value chain Whether those closures will support our margins, we surely hope so, and we expect some improvement, but we're also very cautious with those expectations. whether those closures will support our margins we surely hope so and we expect some improvement but we're also very cautious with those expectations So none of our internal plans includes any optimistic expectation on the cycle trend reverse. so none of our internal plans includes any optimistic expectation on the cycle trend reverse We see structural changes in the market when it comes to feedstock. we see structural changes in the market when it comes to feedstock We see structural changes in the market when it comes to capacities. Demand is also soft in Europe, therefore, we keep our expectations rather lower, and focus on operational efficiency and utilizing the integrated value chain margins. When it comes to the new olefins projects, there's been loads of work done over the past two quarters in order to prepare an integrated, an integrated plan combining the work to be delivered on the ISBL and OSBL, and discussing with our partners about the contractors, but also trading partners. We're, we've delivered on some significant milestones. The next one that we would like to communicate and discuss publicly is an updated budget, which we promise to come back to you with end of September. We see structural changes in the market when it comes to capacities. we see structural changes in the market when it comes to capacities Demand is also soft in Europe, therefore, we keep our expectations rather lower, and focus on operational efficiency and utilizing the integrated value chain margins. demand is also soft in europe therefore we keep our expectations rather lower and focus on operational efficiency and utilizing the integrated value chain margins When it comes to the new olefins projects, there's been loads of work done over the past two quarters in order to prepare an integrated, an integrated plan combining the work to be delivered on the ISBL and OSBL, and discussing with our partners about the contractors, but also trading partners. when it comes to the new olefins projects there's been loads of work done over the past two quarters in order to prepare an integrated an integrated plan combining the work to be delivered on the isbl and osbl and discussing with our partners about the contractors but also trading partners We're, we've delivered on some significant milestones. we're we've delivered on some significant milestones The next one that we would like to communicate and discuss publicly is an updated budget, which we promise to come back to you with end of September. the next one that we would like to communicate and discuss publicly is an updated budget which we promise to come back to you with end of september We might have some struggles as discussions with the contractors are ongoing, but there is a plan to deliver on that promise and present the budget end of September. We might have some struggles as discussions with the contractors are ongoing, but there is a plan to deliver on that promise and present the budget end of September. we might have some struggles as discussions with the contractors are ongoing but there is a plan to deliver on that promise and present the budget end of september

Speaker 12: Thank you. Thank you. thank you

Speaker 3: Oleg Galbur, please. Your turn. Oleg Galbur, please. oleg galbur please Your turn. your turn

Speaker 8: Yes. Good afternoon. I hope you can hear me well. I have two questions. The first one is regarding the recently announced asset impairments. As those impairments were triggered by the deterioration of macro assumptions for the ongoing project, could you please tell us how would these new macro expectations impact your EBITDA guidance for the downstream segment, specifically for 2027 and more importantly, for 2030, where you guide for PLN 6 billion-PLN 7 billion and PLN 10 billion-PLN 11 billion respectively? And the second question is, a follow-up on your earlier comments about the petrochemical business. I noticed that the model petchem margin has improved quite significantly in the second quarter versus the first quarter. At the same time, the segment results having improved or the loss has decreased significantly less. Yes. yes Good afternoon. good afternoon I hope you can hear me well. i hope you can hear me well I have two questions. i have two questions The first one is regarding the recently announced asset impairments. the first one is regarding the recently announced asset impairments As those impairments were triggered by the deterioration of macro assumptions for the ongoing project, could you please tell us how would these new macro expectations impact your EBITDA guidance for the downstream segment, specifically for 2027 and more importantly, for 2030, where you guide for PLN 6 billion-PLN 7 billion and PLN 10 billion-PLN 11 billion respectively? as those impairments were triggered by the deterioration of macro assumptions for the ongoing project could you please tell us how would these new macro expectations impact your ebitda guidance for the downstream segment specifically for 2027 and more importantly for 2030 where you guide for pln 6 billion-pln 7 billion and pln 10 billion-pln 11 billion respectively And the second question is, a follow-up on your earlier comments about the petrochemical business. and the second question is a follow-up on your earlier comments about the petrochemical business I noticed that the model petchem margin has improved quite significantly in the second quarter versus the first quarter. i noticed that the model petchem margin has improved quite significantly in the second quarter versus the first quarter At the same time, the segment results having improved or the loss has decreased significantly less. at the same time the segment results having improved or the loss has decreased significantly less I was wondering, first of all, which level or how do you see evolving the petchem margins in the short term? Second of all, what level of margins would you require in order to bring the petchem business to break even, for example, if you have some, some ideas? Thank you. I was wondering, first of all, which level or how do you see evolving the petchem margins in the short term? i was wondering first of all which level or how do you see evolving the petchem margins in the short term Second of all, what level of margins would you require in order to bring the petchem business to break even, for example, if you have some, some ideas? second of all what level of margins would you require in order to bring the petchem business to break even for example if you have some some ideas Thank you. thank you

Speaker 5: I hope I got your questions correctly, 'cause there was some bad line. But I'll start with asset impairments, and let me clarify. We've got, in our first half year, asset impairment. We've got, let's say, two groups of impairments. One related to upstream, specifically in the second quarter. Upstream got impaired, parts of upstream got impaired, due to lower realized crude oil prices. It's not really about our expectations, though, the standard requires us to recalculate when there is a potential impairment indicator, and the drop in crude oil price is such an indicator. Therefore, hence, we recalculated our results to the current prices and recorded some impairment in upstream. I hope I got your questions correctly, 'cause there was some bad line. i hope i got your questions correctly 'cause there was some bad line But I'll start with asset impairments, and let me clarify. but i'll start with asset impairments and let me clarify We've got, in our first half year, asset impairment. we've got in our first half year asset impairment We've got, let's say, two groups of impairments. we've got let's say two groups of impairments One related to upstream, specifically in the second quarter. one related to upstream specifically in the second quarter Upstream got impaired, parts of upstream got impaired, due to lower realized crude oil prices. upstream got impaired parts of upstream got impaired due to lower realized crude oil prices It's not really about our expectations, though, the standard requires us to recalculate when there is a potential impairment indicator, and the drop in crude oil price is such an indicator. it's not really about our expectations though the standard requires us to recalculate when there is a potential impairment indicator and the drop in crude oil price is such an indicator Therefore, hence, we recalculated our results to the current prices and recorded some impairment in upstream. therefore hence we recalculated our results to the current prices and recorded some impairment in upstream On the other hand, we also reversed impairment in the upstream as due to our ongoing investment in the exploration assets, we are increasing efficiency. And that's allowed us to reverse some of the previously recorded impairments. The impairments we've got in downstream are not really driven by deteriorating macro environment. We've got two large investments, the olefins project, and bottom of the barrel, so the hydrocracking unit in Mažeikiai, in Lithuania. That simply are in the red. And as we continue delivering on those projects, we are re-evaluating the value in use. If that's lower than the spent CapEx, we simply need to write off the CapEx that we spent during the quarter. On the other hand, we also reversed impairment in the upstream as due to our ongoing investment in the exploration assets, we are increasing efficiency. on the other hand we also reversed impairment in the upstream as due to our ongoing investment in the exploration assets we are increasing efficiency And that's allowed us to reverse some of the previously recorded impairments. and that's allowed us to reverse some of the previously recorded impairments The impairments we've got in downstream are not really driven by deteriorating macro environment. the impairments we've got in downstream are not really driven by deteriorating macro environment We've got two large investments, the olefins project, and bottom of the barrel, so the hydrocracking unit in Mažeikiai, in Lithuania. we've got two large investments the olefins project and bottom of the barrel so the hydrocracking unit in mažeikiai in lithuania That simply are in the red. that simply are in the red And as we continue delivering on those projects, we are re-evaluating the value in use. and as we continue delivering on those projects we are re-evaluating the value in use If that's lower than the spent CapEx, we simply need to write off the CapEx that we spent during the quarter. if that's lower than the spent capex we simply need to write off the capex that we spent during the quarter So it's not that there is some change in our expectations related to macroeconomic environment, it's more the sense of the past, so to say, that we need to, that we need to, simply deal with on an ongoing basis. And you also asked about the model petchem margins. Those improved quarter-on-quarter, but still dropped by more than 20%, year-on-year. So we are simply in a persisting, very difficult macroeconomic environment. Those changes in, in the petrochemicals, model margins are not really due to, any, movement in the market related to prices or profitability of those, mostly related to feedstock. So it's not that there is some change in our expectations related to macroeconomic environment, it's more the sense of the past, so to say, that we need to, that we need to, simply deal with on an ongoing basis. so it's not that there is some change in our expectations related to macroeconomic environment it's more the sense of the past so to say that we need to that we need to simply deal with on an ongoing basis And you also asked about the model petchem margins. and you also asked about the model petchem margins Those improved quarter-on-quarter, but still dropped by more than 20%, year-on-year. those improved quarter-on-quarter but still dropped by more than 20% year-on-year So we are simply in a persisting, very difficult macroeconomic environment. so we are simply in a persisting very difficult macroeconomic environment Those changes in, in the petrochemicals, model margins are not really due to, any, movement in the market related to prices or profitability of those, mostly related to feedstock. those changes in in the petrochemicals model margins are not really due to any movement in the market related to prices or profitability of those mostly related to feedstock So with the lower crude oil price, we've got lower naphtha prices, and that is part of our petchem margin computation, hence the increase in the petchem model margin. But the results were indeed in Q2 weaker than in Q1, because of also mentioned disruptions in the operations. We had blackouts in May at our Anwil unit or Anwil plant, and that disrupted operations and volumes produced, hence a difficult quarter for that business line to manage, to navigate through. So with the lower crude oil price, we've got lower naphtha prices, and that is part of our petchem margin computation, hence the increase in the petchem model margin. so with the lower crude oil price we've got lower naphtha prices and that is part of our petchem margin computation hence the increase in the petchem model margin But the results were indeed in Q2 weaker than in Q1, because of also mentioned disruptions in the operations. but the results were indeed in q2 weaker than in q1 because of also mentioned disruptions in the operations We had blackouts in May at our Anwil unit or Anwil plant, and that disrupted operations and volumes produced, hence a difficult quarter for that business line to manage, to navigate through. we had blackouts in may at our anwil unit or anwil plant and that disrupted operations and volumes produced hence a difficult quarter for that business line to manage to navigate through

Speaker 8: Thank you very much. May I just ask one confirmation for the first question? So does it mean that you see no need to revise your EBITDA guidance for the downstream segment for 2027 and 2030 as a result of the impairments that we discussed about? Thank you very much. thank you very much May I just ask one confirmation for the first question? may i just ask one confirmation for the first question So does it mean that you see no need to revise your EBITDA guidance for the downstream segment for 2027 and 2030 as a result of the impairments that we discussed about? so does it mean that you see no need to revise your ebitda guidance for the downstream segment for 2027 and 2030 as a result of the impairments that we discussed about

Speaker 5: We see no significant change to our strategic assumptions. Hence, of course, we will re-evaluate our strategic plans towards the end of the year, also financially, but no significant structural change to our expectations for each of the segments. We see no significant change to our strategic assumptions. we see no significant change to our strategic assumptions Hence, of course, we will re-evaluate our strategic plans towards the end of the year, also financially, but no significant structural change to our expectations for each of the segments. hence of course we will re-evaluate our strategic plans towards the end of the year also financially but no significant structural change to our expectations for each of the segments

Speaker 8: Thank you. Thank you. thank you

Speaker 3: Michał Kozak, Trigon, please. Michał Kozak, Trigon, please. michał kozak trigon please

Speaker 7: Hi. Do you hear me well? Hi. hi Do you hear me well? do you hear me well

Speaker 3: Yeah. Yeah. yeah

Speaker 5: Very well. Very well. very well

Speaker 7: Okay. So two questions from my side. The first one, what is the total size of Gazprom's claims against ORLEN, and how much is it booked in your provisions? And the second question: How much do you pay for chartering LNG ships in wholesale trading? What was the CapEx amount in this sub-segment in upstream and supply in the first half of this year? And could this cost rise and hit EBITDA if imports grow in the coming years? It seems to me that there is no free cashflow in this line, in the first half of the year, due to high CapEx, due to high charters. Thank you. Okay. okay So two questions from my side. so two questions from my side The first one, what is the total size of Gazprom's claims against ORLEN, and how much is it booked in your provisions? the first one what is the total size of gazprom's claims against orlen and how much is it booked in your provisions And the second question: How much do you pay for chartering LNG ships in wholesale trading? and the second question how much do you pay for chartering lng ships in wholesale trading What was the CapEx amount in this sub-segment in upstream and supply in the first half of this year? what was the capex amount in this sub-segment in upstream and supply in the first half of this year And could this cost rise and hit EBITDA if imports grow in the coming years? and could this cost rise and hit ebitda if imports grow in the coming years It seems to me that there is no free cashflow in this line, in the first half of the year, due to high CapEx, due to high charters. it seems to me that there is no free cashflow in this line in the first half of the year due to high capex due to high charters Thank you. thank you

Speaker 5: Thank you. I will start with Gazprom, but Marcin, in the meantime, if you could find some more detailed information on the chartering and ships. All right. Gazprom and the recent arbitration decision, and how it's reflected in our financial statements. The arbitration decision was to revise gas sales prices to an updated formula. In essence, we simply acquired gas at lower prices. That was the decision of the court in 2018, 2019 and 2020. We recalculated all of the purchases and came up with a maximum amount of $290 million, and that is recorded as a conditional liability and included in our financial statements. Thank you. thank you I will start with Gazprom, but Marcin, in the meantime, if you could find some more detailed information on the chartering and ships. i will start with gazprom but marcin in the meantime if you could find some more detailed information on the chartering and ships All right. all right Gazprom and the recent arbitration decision, and how it's reflected in our financial statements. gazprom and the recent arbitration decision and how it's reflected in our financial statements The arbitration decision was to revise gas sales prices to an updated formula. the arbitration decision was to revise gas sales prices to an updated formula In essence, we simply acquired gas at lower prices. in essence we simply acquired gas at lower prices That was the decision of the court in 2018, 2019 and 2020. that was the decision of the court in 2018 2019 and 2020 We recalculated all of the purchases and came up with a maximum amount of $290 million, and that is recorded as a conditional liability and included in our financial statements. we recalculated all of the purchases and came up with a maximum amount of $290 million and that is recorded as a conditional liability and included in our financial statements We, however, assessed in detail what is the probability of the future economic benefit outflow. We are currently unable, due to sanctions and regulations, to settle off that liability, and we don't expect that situation to change rapidly. Therefore, we procured several scenarios evaluating the probability of us having the obligation to... The obligation or actually the possibility to pay, because the obligation we have already. We came up with an accrual provision of PLN 217 million... We will reevaluate that provision each quarter, exactly evaluating what is the possibility of the future economic benefit outflow. There is a bit more to notice here, 'cause the situation with the settlements to Gazprom is quite complex. We, however, assessed in detail what is the probability of the future economic benefit outflow. we however assessed in detail what is the probability of the future economic benefit outflow We are currently unable, due to sanctions and regulations, to settle off that liability, and we don't expect that situation to change rapidly. we are currently unable due to sanctions and regulations to settle off that liability and we don't expect that situation to change rapidly Therefore, we procured several scenarios evaluating the probability of us having the obligation to... therefore we procured several scenarios evaluating the probability of us having the obligation to The obligation or actually the possibility to pay, because the obligation we have already. the obligation or actually the possibility to pay because the obligation we have already We came up with an accrual provision of PLN 217 million... we came up with an accrual provision of pln 217 million We will reevaluate that provision each quarter, exactly evaluating what is the possibility of the future economic benefit outflow. we will reevaluate that provision each quarter exactly evaluating what is the possibility of the future economic benefit outflow There is a bit more to notice here, 'cause the situation with the settlements to Gazprom is quite complex. there is a bit more to notice here 'cause the situation with the settlements to gazprom is quite complex There is another, another at least two cases that we expect in the next years. It relates to a revision of gas sales prices for 2021 and 2022 as well. One relates to interest payments. Therefore, in order to have the full picture, we will need to conclude on those remaining cases, but that first one is already reflected in the financial statements and in our books. Marcin, over to you for the ships and shipping. There is another, another at least two cases that we expect in the next years. there is another another at least two cases that we expect in the next years It relates to a revision of gas sales prices for 2021 and 2022 as well. it relates to a revision of gas sales prices for 2021 and 2022 as well One relates to interest payments. one relates to interest payments Therefore, in order to have the full picture, we will need to conclude on those remaining cases, but that first one is already reflected in the financial statements and in our books. therefore in order to have the full picture we will need to conclude on those remaining cases but that first one is already reflected in the financial statements and in our books Marcin, over to you for the ships and shipping. marcin over to you for the ships and shipping

Speaker 6: Yes. Indeed, the CapEx that we have now plans for the charter of LNG carriers is over PLN 2 billion for 2020, for 2025. However, we will look into more details in reference to the forthcoming years, how this will look like, and we'll get back to you on the call. Yes. yes Indeed, the CapEx that we have now plans for the charter of LNG carriers is over PLN 2 billion for 2020, for 2025. indeed the capex that we have now plans for the charter of lng carriers is over pln 2 billion for 2020 for 2025 However, we will look into more details in reference to the forthcoming years, how this will look like, and we'll get back to you on the call. however we will look into more details in reference to the forthcoming years how this will look like and we'll get back to you on the call

Speaker 7: Okay, thank you. Okay, thank you. okay thank you

Speaker 3: Krzysztof, PKO? Krzysztof, PKO? krzysztof pko

Speaker 4: Hello, everyone. Krzysztof speaking. Thank you for the presentation. I only have one question, because you referred to the analyst consensus with respect to EBITDA line. However, I was wondering if you could refer also to DPS, right? Which is right now, as I'm looking at the Bloomberg terminal, 5.7 for next year. And I was wondering, after this first half, we saw the operating cash flow numbers, which is the base for calculations for the calculation of dividend, in your case. And you see, you see that there is a risk that the CapEx spend is also going to be lower than you guided. Does it mean that we could expect even, like, a higher dividend, like a total dividend next year, in 2026? Hello, everyone. hello everyone Krzysztof speaking. krzysztof speaking Thank you for the presentation. thank you for the presentation I only have one question, because you referred to the analyst consensus with respect to EBITDA line. i only have one question because you referred to the analyst consensus with respect to ebitda line However, I was wondering if you could refer also to DPS, right? however i was wondering if you could refer also to dps right Which is right now, as I'm looking at the Bloomberg terminal, 5.7 for next year. which is right now as i'm looking at the bloomberg terminal 5.7 for next year And I was wondering, after this first half, we saw the operating cash flow numbers, which is the base for calculations for the calculation of dividend, in your case. and i was wondering after this first half we saw the operating cash flow numbers which is the base for calculations for the calculation of dividend in your case And you see, you see that there is a risk that the CapEx spend is also going to be lower than you guided. and you see you see that there is a risk that the capex spend is also going to be lower than you guided Does it mean that we could expect even, like, a higher dividend, like a total dividend next year, in 2026? does it mean that we could expect even like a higher dividend like a total dividend next year in 2026

Speaker 5: The way to respond to this question or, the way I am going to respond to the question, is evaluating. We need to, when making, the dividend decision next year, we will take into consideration operating cash flows and the quality of the operating cash flows. So far, we have been happy with the quality of operating results our segments delivered. Volumes are solid, macroeconomic environment is difficult, or more difficult than it used to be, but the macroeconomic environment in the downstream segment is supporting our business. All in all, good performance in a more stable, however, weaker environment. Then the next is the financing availability. We've done a lot of work on the financings, secured around PLN 10 billion of preferential or non-refundable financing. The way to respond to this question or, the way I am going to respond to the question, is evaluating. the way to respond to this question or the way i am going to respond to the question is evaluating We need to, when making, the dividend decision next year, we will take into consideration operating cash flows and the quality of the operating cash flows. we need to when making the dividend decision next year we will take into consideration operating cash flows and the quality of the operating cash flows So far, we have been happy with the quality of operating results our segments delivered. so far we have been happy with the quality of operating results our segments delivered Volumes are solid, macroeconomic environment is difficult, or more difficult than it used to be, but the macroeconomic environment in the downstream segment is supporting our business. volumes are solid macroeconomic environment is difficult or more difficult than it used to be but the macroeconomic environment in the downstream segment is supporting our business All in all, good performance in a more stable, however, weaker environment. all in all good performance in a more stable however weaker environment Then the next is the financing availability. then the next is the financing availability We've done a lot of work on the financings, secured around PLN 10 billion of preferential or non-refundable financing. we've done a lot of work on the financings secured around pln 10 billion of preferential or non-refundable financing We issued two rounds of bonds, one successfully reentered the U.S. dollar market and reopened the green financing in euros. We are also working on other asset-backed financing arrangements, as I mentioned. Therefore, as we stand today, it is probably going to be a tick in the box when it comes to availability of financing and the quality of our funding structure. And then, lastly, of course, the CapEx plans and the needs going forward. So far, we've delivered on the plan. There might be some delay here and there. Again, as I said, a lot of moving parts, but we see the situation under control. We issued two rounds of bonds, one successfully reentered the U.S. dollar market and reopened the green financing in euros. we issued two rounds of bonds one successfully reentered the u.s dollar market and reopened the green financing in euros We are also working on other asset-backed financing arrangements, as I mentioned. we are also working on other asset-backed financing arrangements as i mentioned Therefore, as we stand today, it is probably going to be a tick in the box when it comes to availability of financing and the quality of our funding structure. therefore as we stand today it is probably going to be a tick in the box when it comes to availability of financing and the quality of our funding structure And then, lastly, of course, the CapEx plans and the needs going forward. and then lastly of course the capex plans and the needs going forward So far, we've delivered on the plan. so far we've delivered on the plan There might be some delay here and there. there might be some delay here and there Again, as I said, a lot of moving parts, but we see the situation under control. again as i said a lot of moving parts but we see the situation under control As we stand today, we are on a journey towards a recommendation, dividend recommendation, that is going to be exactly in line with our dividend policy, so up to 25% of operating cash flows, less financing costs. Does that make sense? As we stand today, we are on a journey towards a recommendation, dividend recommendation, that is going to be exactly in line with our dividend policy, so up to 25% of operating cash flows, less financing costs. as we stand today we are on a journey towards a recommendation dividend recommendation that is going to be exactly in line with our dividend policy so up to 25% of operating cash flows less financing costs Does that make sense? does that make sense

Speaker 4: Yeah, yeah. Thank you. Thank you very much. Yeah, yeah. yeah yeah Thank you. thank you Thank you very much. thank you very much

Speaker 3: Now we move on to Gustavo Campos, please. Now we move on to Gustavo Campos, please. now we move on to gustavo campos please

Speaker 2: Hello. Hello. hello

Speaker 5: Hey, Gustavo. Hey, Gustavo. hey gustavo

Speaker 2: Hi. Sorry. Yes, thank you very much for the call, and congrats on the strong results. I had yeah, just a couple of questions from my side. First of all, I'm trying to think here, what are the main drivers that are keeping petrochemical prices at you know at these trough conditions that you mentioned and into the second half of the year? If you could elaborate a bit on the macro backdrop, and if you have any visibility on the timing of any potential recovery in the industry that could support margins. Yeah, that would be my first question. Thank you. Hi. hi Sorry. sorry Yes, thank you very much for the call, and congrats on the strong results. yes thank you very much for the call and congrats on the strong results I had yeah, just a couple of questions from my side. i had yeah just a couple of questions from my side First of all, I'm trying to think here, what are the main drivers that are keeping petrochemical prices at you know at these trough conditions that you mentioned and into the second half of the year? first of all i'm trying to think here what are the main drivers that are keeping petrochemical prices at you know at these trough conditions that you mentioned and into the second half of the year If you could elaborate a bit on the macro backdrop, and if you have any visibility on the timing of any potential recovery in the industry that could support margins. if you could elaborate a bit on the macro backdrop and if you have any visibility on the timing of any potential recovery in the industry that could support margins Yeah, that would be my first question. yeah that would be my first question Thank you. thank you

Speaker 5: ... Look, Gustavo, margins in our prices in petrochemicals business is a play of supply and demand. What we're seeing in Europe is softer demand, and what we're seeing in Europe is an oversupply, specifically coming from imports. Of course, the situation we discussed with the previous question, so the closures of units in Europe and limiting local supply will, to some extent, soften or not really soften, ease the situation and support the prices. But whether that will be the scale that everyone expects is actually relatively hard to comment. Again, for us, as I mentioned, while we would love to benefit from an easier, softer market... ... Look, Gustavo, margins in our prices in petrochemicals business is a play of supply and demand. look gustavo margins in our prices in petrochemicals business is a play of supply and demand What we're seeing in Europe is softer demand, and what we're seeing in Europe is an oversupply, specifically coming from imports. what we're seeing in europe is softer demand and what we're seeing in europe is an oversupply specifically coming from imports Of course, the situation we discussed with the previous question, so the closures of units in Europe and limiting local supply will, to some extent, soften or not really soften, ease the situation and support the prices. of course the situation we discussed with the previous question so the closures of units in europe and limiting local supply will to some extent soften or not really soften ease the situation and support the prices But whether that will be the scale that everyone expects is actually relatively hard to comment. but whether that will be the scale that everyone expects is actually relatively hard to comment Again, for us, as I mentioned, while we would love to benefit from an easier, softer market... again for us as i mentioned while we would love to benefit from an easier softer market Sorry, not a softer market, but an easier market, we are still benefiting from an integrated value chain, and margins realized on both, refining and increased throughput. That's how petrochemicals contributes to our results at this stage. So what would need- Sorry, not a softer market, but an easier market, we are still benefiting from an integrated value chain, and margins realized on both, refining and increased throughput. sorry not a softer market but an easier market we are still benefiting from an integrated value chain and margins realized on both refining and increased throughput That's how petrochemicals contributes to our results at this stage. that's how petrochemicals contributes to our results at this stage So what would need- so what would need-

Speaker 2: Understood, yeah Understood, yeah understood yeah

Speaker 5: ... to happen for the recovery to happen? Either demand significantly improved, will that happen with the recovery efforts for Ukraine? Will that happen with some decisions of the European Commission and changes in the European industrial landscape? Probably. But none of those, I think, is a quick fix. Or limiting supply to the European markets, that can happen with some regulatory decisions and legislation, but there is nothing on the kind of quick short-term horizon. ... to happen for the recovery to happen? to happen for the recovery to happen Either demand significantly improved, will that happen with the recovery efforts for Ukraine? either demand significantly improved will that happen with the recovery efforts for ukraine Will that happen with some decisions of the European Commission and changes in the European industrial landscape? will that happen with some decisions of the european commission and changes in the european industrial landscape Probably. probably But none of those, I think, is a quick fix. but none of those i think is a quick fix Or limiting supply to the European markets, that can happen with some regulatory decisions and legislation, but there is nothing on the kind of quick short-term horizon. or limiting supply to the european markets that can happen with some regulatory decisions and legislation but there is nothing on the kind of quick short-term horizon

Speaker 2: Understood. Thank you. That is very helpful. My second question would be around if you could please give an estimate on the percentage of your EBITDA contribution that is linked to gas prices and the oil prices, separately. That would be very helpful. Thank you. Understood. understood Thank you. thank you That is very helpful. that is very helpful My second question would be around if you could please give an estimate on the percentage of your EBITDA contribution that is linked to gas prices and the oil prices, separately. my second question would be around if you could please give an estimate on the percentage of your ebitda contribution that is linked to gas prices and the oil prices separately That would be very helpful. that would be very helpful Thank you. thank you

Speaker 5: The way we are exposed to those two commodities is highest, obviously, in the upstream and supply segment, where we produce gas and crude oil. But on the other hand, our business model includes countercyclicity, as I mentioned, and also some natural hedging. Because the same gas and crude oil is an input feedstock to production in our downstream segment. So when the prices move either way, we benefit in one segment and while we record narrower spreads in the other segment. Gas is also inputs into electricity production and drives electricity prices to some extent. So I think it's a more complex picture than just applying a percentage on EBITDA contribution, 'cause there is a contribution on both ways. The way we are exposed to those two commodities is highest, obviously, in the upstream and supply segment, where we produce gas and crude oil. the way we are exposed to those two commodities is highest obviously in the upstream and supply segment where we produce gas and crude oil But on the other hand, our business model includes countercyclicity, as I mentioned, and also some natural hedging. but on the other hand our business model includes countercyclicity as i mentioned and also some natural hedging Because the same gas and crude oil is an input feedstock to production in our downstream segment. because the same gas and crude oil is an input feedstock to production in our downstream segment So when the prices move either way, we benefit in one segment and while we record narrower spreads in the other segment. so when the prices move either way we benefit in one segment and while we record narrower spreads in the other segment Gas is also inputs into electricity production and drives electricity prices to some extent. gas is also inputs into electricity production and drives electricity prices to some extent So I think it's a more complex picture than just applying a percentage on EBITDA contribution, 'cause there is a contribution on both ways. so i think it's a more complex picture than just applying a percentage on ebitda contribution 'cause there is a contribution on both ways There is a contribution on realized prices on exploration, and here Upstream Poland and Upstream Norway are the key pieces of the puzzle. But there is also input on towards a significant input towards the downstream segment. There is a contribution on realized prices on exploration, and here Upstream Poland and Upstream Norway are the key pieces of the puzzle. there is a contribution on realized prices on exploration and here upstream poland and upstream norway are the key pieces of the puzzle But there is also input on towards a significant input towards the downstream segment. but there is also input on towards a significant input towards the downstream segment

Speaker 2: Understood. Yeah, no, that is very clear. And your gas production, as far as you know, for example, 2026, do you have any estimate of how much your gas production is hedged in by prices? Understood. understood Yeah, no, that is very clear. yeah no that is very clear And your gas production, as far as you know, for example, 2026, do you have any estimate of how much your gas production is hedged in by prices? and your gas production as far as you know for example 2026 do you have any estimate of how much your gas production is hedged in by prices

Speaker 5: We probably would refrain from detailed discussions on our hedging policy. That's a very sensitive information. So let me leave it this way. If you could connect with the IR team, or the IR team will connect following the presentation and see how we can address that question without again putting us in a too uncomfortable situation, revealing too much about our hedges. We probably would refrain from detailed discussions on our hedging policy. we probably would refrain from detailed discussions on our hedging policy That's a very sensitive information. that's a very sensitive information So let me leave it this way. so let me leave it this way If you could connect with the IR team, or the IR team will connect following the presentation and see how we can address that question without again putting us in a too uncomfortable situation, revealing too much about our hedges. if you could connect with the ir team or the ir team will connect following the presentation and see how we can address that question without again putting us in a too uncomfortable situation revealing too much about our hedges

Speaker 2: Understood. Yeah, apologies for that. Yeah, thank you. Understood. understood Yeah, apologies for that. yeah apologies for that Yeah, thank you. yeah thank you

Speaker 13: Don't raise your expectation. Don't raise your expectation. don't raise your expectation

Speaker 2: Sorry, lastly, I just wanted to ask about the funding needs. You said you had some asset-backed loans that you were still working on, but other than that, should we expect any additional, like, bilateral loan agreements or more issuances for the rest of this year? Or do you think that your debt funding needs are already addressed as far as 2025? Sorry, lastly, I just wanted to ask about the funding needs. sorry lastly i just wanted to ask about the funding needs You said you had some asset-backed loans that you were still working on, but other than that, should we expect any additional, like, bilateral loan agreements or more issuances for the rest of this year? you said you had some asset-backed loans that you were still working on but other than that should we expect any additional like bilateral loan agreements or more issuances for the rest of this year Or do you think that your debt funding needs are already addressed as far as 2025? or do you think that your debt funding needs are already addressed as far as 2025

Speaker 5: Mm-hmm. Mm-hmm. mm-hmm

Speaker 2: Thank you. Thank you. thank you

Speaker 5: Gustavo, I, we think or we work with our funding schedule or funding plan, with a much longer horizon than just funding a year. We rather try to match, our funding, to, the milestones and needs of our strategy roadmap. So it's not really about 2025 here, it's about establishing, establishing a portfolio or building a portfolio, of, tools and instruments that will allow us to fund our strategy in the midterm, at least. Hence, that's exactly why we issued bonds this year. The markets were good and allowed us to, deliver on successful transactions. We're working on some asset-backed financing. Gustavo, I, we think or we work with our funding schedule or funding plan, with a much longer horizon than just funding a year. gustavo i we think or we work with our funding schedule or funding plan with a much longer horizon than just funding a year We rather try to match, our funding, to, the milestones and needs of our strategy roadmap. we rather try to match our funding to the milestones and needs of our strategy roadmap So it's not really about 2025 here, it's about establishing, establishing a portfolio or building a portfolio, of, tools and instruments that will allow us to fund our strategy in the midterm, at least. so it's not really about 2025 here it's about establishing establishing a portfolio or building a portfolio of tools and instruments that will allow us to fund our strategy in the midterm at least Hence, that's exactly why we issued bonds this year. hence that's exactly why we issued bonds this year The markets were good and allowed us to, deliver on successful transactions. the markets were good and allowed us to deliver on successful transactions We're working on some asset-backed financing. we're working on some asset-backed financing Some transactions might be ready already this year, but here we're rather working on proper relationship and making sure that we match the funding needs to the projects, 'cause that's then a very specific financing that's not really on, that that's aimed or that's supporting a particular investment project. So again, there's a lot going on here. What we've delivered, we've already shared with you. We've got some more news coming up. Whether the projects will have finalized this year is not really that critical, but it's critical that we've got the right quality of our funding pools, the right liquidity, and the right cost. Some transactions might be ready already this year, but here we're rather working on proper relationship and making sure that we match the funding needs to the projects, 'cause that's then a very specific financing that's not really on, that that's aimed or that's supporting a particular investment project. some transactions might be ready already this year but here we're rather working on proper relationship and making sure that we match the funding needs to the projects 'cause that's then a very specific financing that's not really on that that's aimed or that's supporting a particular investment project So again, there's a lot going on here. so again there's a lot going on here What we've delivered, we've already shared with you. what we've delivered we've already shared with you We've got some more news coming up. we've got some more news coming up Whether the projects will have finalized this year is not really that critical, but it's critical that we've got the right quality of our funding pools, the right liquidity, and the right cost. whether the projects will have finalized this year is not really that critical but it's critical that we've got the right quality of our funding pools the right liquidity and the right cost

Speaker 3: Maybe a little bit of a comment here. Financing is an ongoing project. I mean, we're gonna be delivering on those projects constantly and instantly, on various needs, 'cause we both require long-term capital for investments, but we also require working capital for ongoing operations. So this is a summary here that we presented and Magda discussed, that actually summarizes our approach, and therefore results of this approach that have been delivered over the last six months. And, big money likes to be silent unless signed, and most probably we will align to that, going forward. So we're not, giving heads-up on that, too soon. However, we're just listing here what, what we see as a sensible and substantial strategy, strategy delivery, so aligning required cash flows and its maturity, to respective business lines or business needs that we have. Maybe a little bit of a comment here. maybe a little bit of a comment here Financing is an ongoing project. financing is an ongoing project I mean, we're gonna be delivering on those projects constantly and instantly, on various needs, 'cause we both require long-term capital for investments, but we also require working capital for ongoing operations. i mean we're gonna be delivering on those projects constantly and instantly on various needs 'cause we both require long-term capital for investments but we also require working capital for ongoing operations So this is a summary here that we presented and Magda discussed, that actually summarizes our approach, and therefore results of this approach that have been delivered over the last six months. so this is a summary here that we presented and magda discussed that actually summarizes our approach and therefore results of this approach that have been delivered over the last six months And, big money likes to be silent unless signed, and most probably we will align to that, going forward. and big money likes to be silent unless signed and most probably we will align to that going forward So we're not, giving heads-up on that, too soon. so we're not giving heads-up on that too soon However, we're just listing here what, what we see as a sensible and substantial strategy, strategy delivery, so aligning required cash flows and its maturity, to respective business lines or business needs that we have. however we're just listing here what what we see as a sensible and substantial strategy strategy delivery so aligning required cash flows and its maturity to respective business lines or business needs that we have This is something that is putting a lot of working hours on us, and, giving us, the delivery of, or us helping delivery of the strategy. That... Let's put it that way. However, I would like to, with that summary, leave the floor to Tamás with the last question, and wrap up if you don't have anything against. So, Tamás, please. This is something that is putting a lot of working hours on us, and, giving us, the delivery of, or us helping delivery of the strategy. this is something that is putting a lot of working hours on us and giving us the delivery of or us helping delivery of the strategy That... that Let's put it that way. let's put it that way However, I would like to, with that summary, leave the floor to Tamás with the last question, and wrap up if you don't have anything against. however i would like to with that summary leave the floor to tamás with the last question and wrap up if you don't have anything against So, Tamás, please. so tamás please

Speaker 10: Yes, thank you very much. Good afternoon. So two quick question on my side. First, on the upstream, I saw that the second quarter production volume was significantly lower than the first quarter. Was it only due to the maintenance activity, or were you losing any production? And what is your guidance actually for 2025, 2026? That would be my first question. And second question is a little bit about your distribution network, which basically brought two-third of the profit in the energy business. These WACC rates, what you mentioned, are they in line with the law, or do you see any risk that the regulator may cut them in the future? Thank you. Yes, thank you very much. yes thank you very much Good afternoon. good afternoon So two quick question on my side. so two quick question on my side First, on the upstream, I saw that the second quarter production volume was significantly lower than the first quarter. first on the upstream i saw that the second quarter production volume was significantly lower than the first quarter Was it only due to the maintenance activity, or were you losing any production? was it only due to the maintenance activity or were you losing any production And what is your guidance actually for 2025, 2026? and what is your guidance actually for 2025 2026 That would be my first question. that would be my first question And second question is a little bit about your distribution network, which basically brought two-third of the profit in the energy business. and second question is a little bit about your distribution network which basically brought two-third of the profit in the energy business These WACC rates, what you mentioned, are they in line with the law, or do you see any risk that the regulator may cut them in the future? these wacc rates what you mentioned are they in line with the law or do you see any risk that the regulator may cut them in the future Thank you. thank you

Speaker 5: Tamás, in terms of upstream, and our volumes, there are two factors, that can be seen in the second quarter result. One is lower gas production volumes, and that's due to maintenance and, to some extent, investment operations as well. Specifically, the mentioned Ormen Lange Phase 3 project. It's an add-on project to an already existing exploration asset, therefore, we needed to adjust production in order to complete on that investment activity. When it comes to crude oil, which is a much less impactful part of our upstream production, we obviously see some natural depletion of resources, but that is less of a focus for us. Tamás, in terms of upstream, and our volumes, there are two factors, that can be seen in the second quarter result. tamás in terms of upstream and our volumes there are two factors that can be seen in the second quarter result One is lower gas production volumes, and that's due to maintenance and, to some extent, investment operations as well. one is lower gas production volumes and that's due to maintenance and to some extent investment operations as well Specifically, the mentioned Ormen Lange Phase 3 project. specifically the mentioned ormen lange phase 3 project It's an add-on project to an already existing exploration asset, therefore, we needed to adjust production in order to complete on that investment activity. it's an add-on project to an already existing exploration asset therefore we needed to adjust production in order to complete on that investment activity When it comes to crude oil, which is a much less impactful part of our upstream production, we obviously see some natural depletion of resources, but that is less of a focus for us. when it comes to crude oil which is a much less impactful part of our upstream production we obviously see some natural depletion of resources but that is less of a focus for us For us, the key focus in upstream is gas supply, and with all of our activities and the quality of the assets that we currently have in our portfolio, we've got positive outlook for the remainder of the year and the next years. Distribution and return on assets, the WACCs you're seeing are the return are the WACCs decided by the regulator or approved by the regulator that are being used to remunerate our distribution assets on the regulated asset base. Will they change in the future? Certainly. As part of the tariffs review, WACCs are being reviewed as well. For us, the key focus in upstream is gas supply, and with all of our activities and the quality of the assets that we currently have in our portfolio, we've got positive outlook for the remainder of the year and the next years. for us the key focus in upstream is gas supply and with all of our activities and the quality of the assets that we currently have in our portfolio we've got positive outlook for the remainder of the year and the next years Distribution and return on assets, the WACCs you're seeing are the return are the WACCs decided by the regulator or approved by the regulator that are being used to remunerate our distribution assets on the regulated asset base. distribution and return on assets the waccs you're seeing are the return are the waccs decided by the regulator or approved by the regulator that are being used to remunerate our distribution assets on the regulated asset base Will they change in the future? will they change in the future Certainly. certainly As part of the tariffs review, WACCs are being reviewed as well. as part of the tariffs review waccs are being reviewed as well It is in the common interest of both us and other distribution operators, distribution grid operators, and the regulator to find the right remuneration on the asset base in order to expand and modernize the grid, which is one of the key priorities in terms of the Polish energy transition. It is in the common interest of both us and other distribution operators, distribution grid operators, and the regulator to find the right remuneration on the asset base in order to expand and modernize the grid, which is one of the key priorities in terms of the Polish energy transition. it is in the common interest of both us and other distribution operators distribution grid operators and the regulator to find the right remuneration on the asset base in order to expand and modernize the grid which is one of the key priorities in terms of the polish energy transition

Speaker 10: Okay, great. Thank you very much. Okay, great. okay great Thank you very much. thank you very much

Speaker 5: Thank you. Thank you. thank you

Speaker 3: Thank you very much. It's been very, active and lively discussion, so thank you for, participating. Thank you, Magda. We'll be wrapping up. As mentioned, should you like to have any follow-ups, we are here for you. And, see you in a quarter, if not before, on the road. Thank you very much. thank you very much It's been very, active and lively discussion, so thank you for, participating. it's been very active and lively discussion so thank you for participating Thank you, Magda. thank you magda We'll be wrapping up. we'll be wrapping up As mentioned, should you like to have any follow-ups, we are here for you. as mentioned should you like to have any follow-ups we are here for you And, see you in a quarter, if not before, on the road. and see you in a quarter if not before on the road

Speaker 5: Thank you so much. It was good to have you with us. Take care. Thank you so much. thank you so much It was good to have you with us. it was good to have you with us Take care. take care