Q2 2026 HELLENiQ ENERGY Holdings SA Earnings Call

Operator: First half 2026 financial results. At this time, I would like to turn the conference over to the HELLENiQ ENERGY Holdings management team. Gentlemen, you may now proceed.

Operator: First half 2026 financial results. At this time, I would like to turn the conference over to the HELLENiQ ENERGY Holdings management team. Gentlemen, you may now proceed.

Speaker #1: 2026 financial results. At this time, I would like to turn the conference over to the Hellenic Energy Holdings management team. Gentlemen, you may now proceed.

Speaker #2: Thank you very much. And, the thing I would like to thank everybody who is spending today's afternoon to be with us, you know, to discuss the second quarter and the first half of '26 results.

[Company Representative] (HELLENiQ ENERGY): Thank you very much. I would like to thank everybody who is spending today's afternoon to be with us in order to discuss the Q2 and the H1 of 2026 results and any issues that may arise as a result of this presentation. I would like to start, first of all, with something which is not results-related, and it is something that was decided by our board of directors earlier today. It has to do with our support to areas which have been affected by the wildfires over the last few days in Greece, over and above the usual local community support programs that we have, and they are quite extensive.

Andreas Shiamishis: Thank you very much. I would like to thank everybody who is spending today's afternoon to be with us in order to discuss the Q2 and the H1 of 2026 results and any issues that may arise as a result of this presentation. I would like to start, first of all, with something which is not results-related, and it is something that was decided by our board of directors earlier today. It has to do with our support to areas which have been affected by the wildfires over the last few days in Greece, over and above the usual local community support programs that we have, and they are quite extensive.

Speaker #2: And any issues that may arise as a result of this presentation. So, I would like to start, first of all, with something which is not results-related, and it is something that was decided by our board of directors earlier today.

Speaker #2: And it has to do with our support to areas which have been affected by the wildfires over the last few days in Greece, over and above the usual local community support programs that we have, and they are quite extensive.

Speaker #2: We felt that the situation was quite severe, and as a result, the board approved a special contribution of 25 million euro to be used with cooperation with the appropriate authorities.

[Company Representative] (HELLENiQ ENERGY): We felt that the situation was quite severe, and as a result, the board approved a special contribution of EUR 25 million to be used with cooperation with the appropriate authorities, as a means to accelerate any relief aid to people who have been affected. A lot of these areas are areas where we have operations, be it in the electricity production or in parts of Attica where we have the refineries. It is something that we feel very responsible for people in those areas. Clearly not for the fires, but for the people in those areas. I would like to say that this is a decision which has been made by the board of directors, but it was also a decision which is fully in line with our previous strategy on CSR and what our main shareholders are actually sort of pointing to as a direction.

Andreas Shiamishis: We felt that the situation was quite severe, and as a result, the board approved a special contribution of EUR 25 million to be used with cooperation with the appropriate authorities, as a means to accelerate any relief aid to people who have been affected. A lot of these areas are areas where we have operations, be it in the electricity production or in parts of Attica where we have the refineries. It is something that we feel very responsible for people in those areas. Clearly not for the fires, but for the people in those areas. I would like to say that this is a decision which has been made by the board of directors, but it was also a decision which is fully in line with our previous strategy on CSR and what our main shareholders are actually sort of pointing to as a direction.

Speaker #2: As a means to accelerate any relief aid to people who have been affected, a lot of these areas are areas where we have operations be it in the electricity production or in parts of Attica where we have the refineries.

Speaker #2: So it is something that we feel very responsible for, for people in those areas, clearly not for the fires, but for the people in those areas.

Speaker #2: And I would like to say that this is a decision which has been made by the board of directors but it was also a decision which is fully in line with our previous strategy on CSR and what our main shareholders are actually sort of pointing to as a direction.

Speaker #2: And we have received the confirmation and the, if you will, positive feedback in this respect. Because at the end of the day, the company is effectively a legal vehicle for the representation of the shareholders.

[Company Representative] (HELLENiQ ENERGY): We have received the confirmation and the, if you will, positive feedback in this respect. Because at the end of the day, the company is effectively a legal vehicle for the representation of the shareholders. This is something which we feel it's important, and we should state upfront, before we go into the results. Moving on to the summary, which is page four of our presentation. Clearly, it is a quarter which has been exceptionally strong. It is a quarter which presented us with various challenges. These challenges had to do with safety issues, for example, because we completed the Aspropyrgos Refinery turnaround. That was done with success, with very good safety records, and the refinery started up operating mid to end April successfully. We are actually seeing the benefit of a start of run refinery performance. We also had the challenges of crude supply.

Andreas Shiamishis: We have received the confirmation and the, if you will, positive feedback in this respect. Because at the end of the day, the company is effectively a legal vehicle for the representation of the shareholders. This is something which we feel it's important, and we should state upfront, before we go into the results. Moving on to the summary, which is page four of our presentation. Clearly, it is a quarter which has been exceptionally strong. It is a quarter which presented us with various challenges. These challenges had to do with safety issues, for example, because we completed the Aspropyrgos Refinery turnaround. That was done with success, with very good safety records, and the refinery started up operating mid to end April successfully. We are actually seeing the benefit of a start of run refinery performance. We also had the challenges of crude supply.

Speaker #2: So this is something which we feel it's important and we should state upfront. Before we go into the results. Moving on to the summary, which is page 4 of our presentation.

Speaker #2: Clearly, it is a quarter which has been exceptionally strong. It is a quarter which presented us with various challenges. These challenges had to do with safety issues, for example, because we completed the, as probably was, refinery turnaround that was done with success, with very good safety records, and the refinery started up operating mid to end April successfully.

Speaker #2: And we are actually seeing the benefit of a start of run refinery performance. We also had the challenges of crude supply. This continues rollercoaster of supply routes being open, and then being closed, and then being open again.

[Company Representative] (HELLENiQ ENERGY): This continuous roller coaster of supply routes being open, then being closed, then being open again. Before you actually send the ship in to the Gulf, the Gulf is closed again. It is something which has attracted a lot of our efforts, and we have managed to maintain a very high level of crude supply into our refineries. That is something which effectively has supported the level of financial performance that we see in the quarter. In addition to that, I would like to emphasize that we are seeing, and especially, in the last month or so after the end of the quarter, we are seeing very high refining margins. That's a result of the supply-demand imbalance on products, and it's a result of restricted flows out of the Gulf.

Andreas Shiamishis: This continuous roller coaster of supply routes being open, then being closed, then being open again. Before you actually send the ship in to the Gulf, the Gulf is closed again. It is something which has attracted a lot of our efforts, and we have managed to maintain a very high level of crude supply into our refineries. That is something which effectively has supported the level of financial performance that we see in the quarter. In addition to that, I would like to emphasize that we are seeing, and especially, in the last month or so after the end of the quarter, we are seeing very high refining margins. That's a result of the supply-demand imbalance on products, and it's a result of restricted flows out of the Gulf.

Speaker #2: And then before you actually send the ship in to the Gulf, the Gulf is closed again. It is something which has attracted a lot of our efforts.

Speaker #2: And we have managed to maintain a very high level of crude supply into our refineries. And that is something which effectively has supported the level of financial performance that we see in the quarter.

Speaker #2: In addition to that, I would like to emphasize that we are seeing an especially in the last month or so, so after the end of the quarter, we are seeing very high refining margins.

Speaker #2: That's a result of the supply demand imbalance on products. And it's a result of restricted flows out of the Gulf, it is a result of no Russian exports via a number of routes, and it's also a result of the last two decades of underinvestment in the European refining space, either because of economic reasons, refineries is a cyclical business, so yes, we have been enjoying good refining margins over the last period, but it has been a very long series of weak refining margins in previous years as well.

[Company Representative] (HELLENiQ ENERGY): It is a result of no Russian exports via a number of routes, and it's also a result of the last two decades of underinvestment in the European refining space, either because of economic reasons. Refinery is a cyclical business. Yes, we have been enjoying good refining margins over the last period, but it has been a very long series of weak refining margins in previous years as well. A lot of majors or independent companies have not kept up with their investments in refining capacity, and this is the result of a series of years of underinvestment, leading to the supply shortage, especially in diesel in this part of the world. In terms of operations, we have a very good run with all of our refineries performing very well. We expect that this will continue for the rest of the year.

Andreas Shiamishis: It is a result of no Russian exports via a number of routes, and it's also a result of the last two decades of underinvestment in the European refining space, either because of economic reasons. Refinery is a cyclical business. Yes, we have been enjoying good refining margins over the last period, but it has been a very long series of weak refining margins in previous years as well. A lot of majors or independent companies have not kept up with their investments in refining capacity, and this is the result of a series of years of underinvestment, leading to the supply shortage, especially in diesel in this part of the world. In terms of operations, we have a very good run with all of our refineries performing very well. We expect that this will continue for the rest of the year.

Speaker #2: So a lot of majors or independent companies have not kept up with their investments in refining capacity. And this is the result of a series of years of underinvestment.

Speaker #2: Leading to the supply shortage especially in diesel in this part of the world. In terms of operations, we have a very good run. With all of our refineries performing very well.

Speaker #2: We expect that this will continue for the rest of the year. In the third quarter of this year, we were planning to commence the refinery shutdown of Thessaloniki.

[Company Representative] (HELLENiQ ENERGY): In Q3 of this year, we were planning to commence the refinery shutdown of Thessaloniki. This is likely to be pushed to 2027, which means that from a performance point of view, we should expect to be in a good spot given the current environment that we have. It's not just benchmarks which have done very well, it's also the over-performance or the additional performance that we are monitoring, which has been doing very well. That's a combination of two things. Much more detailed performance optimization at the refineries, which is driven by our recent investments in technology, in AI, and a result of the digital transformation. Being able to extract more value out of the same molecule of hydrocarbons, of course, into the refinery.

Andreas Shiamishis: In Q3 of this year, we were planning to commence the refinery shutdown of Thessaloniki. This is likely to be pushed to 2027, which means that from a performance point of view, we should expect to be in a good spot given the current environment that we have. It's not just benchmarks which have done very well, it's also the over-performance or the additional performance that we are monitoring, which has been doing very well. That's a combination of two things. Much more detailed performance optimization at the refineries, which is driven by our recent investments in technology, in AI, and a result of the digital transformation. Being able to extract more value out of the same molecule of hydrocarbons, of course, into the refinery.

Speaker #2: This is likely to be pushed to 2027, which means that from a performance point of view, we should expect to be in a good spot given the current environment that we have.

Speaker #2: It's not just benchmarks which have done very well. It's also the overperformance or the additional performance that we are monitoring, which has been doing very well.

Speaker #2: That's a combination of two things. Much more detailed performance optimization at the refineries, which is driven by our recent investments in technology in AI and a result of the digital transformation.

Speaker #2: So being able to extract more value out of the same molecule of hydrocarbons that goes into the refinery, but it's also a result of better coordination and performance with the supply and trading team in Greece and in Geneva, which has given us an additional agility and insight into the market, which has been able to be converted into additional profitability.

[Company Representative] (HELLENiQ ENERGY): It's also a result of better coordination and performance with the Supply & Trading team in Greece and in Geneva, which has given us an additional agility and insight into the market, which has been able to be converted into additional profitability. The third level of performance is sales. We're doing very well at those levels. In fact, it is a case of being able to sell more than what we can produce or source at this point in time, which is very good. On the power sector, where we have the conventional, the thermal capacity and sales under Enerwave and the renewable portfolio. The news are positive there as well, and the news effectively come in the form of being able to hold a sliding performance in the old Elpedison system because of the process of changing ownership. That's been halted.

Andreas Shiamishis: It's also a result of better coordination and performance with the Supply & Trading team in Greece and in Geneva, which has given us an additional agility and insight into the market, which has been able to be converted into additional profitability. The third level of performance is sales. We're doing very well at those levels. In fact, it is a case of being able to sell more than what we can produce or source at this point in time, which is very good. On the power sector, where we have the conventional, the thermal capacity and sales under Enerwave and the renewable portfolio. The news are positive there as well, and the news effectively come in the form of being able to hold a sliding performance in the old Elpedison system because of the process of changing ownership. That's been halted.

Speaker #2: The third level of performance is sales. We're doing very well at that levels. In fact, it is a case of being able to sell more than what we can produce or source at this point in time, which is very good.

Speaker #2: On the power sector, where we have the conventional, the thermal capacity and sales under the EnerWave, and the renewable portfolio. The news are positive there as well.

Speaker #2: And the news effectively come in the form of being able to hold a sliding performance in the old Alperison system, because of the process of changing ownership.

Speaker #2: That's been halted the company has entered into a turnaround mode, which is evidenced by better metrics at pretty much everything. Clearly, we cannot double the financial performance of a company in a year, but the signs are very positive.

[Company Representative] (HELLENiQ ENERGY): The company has entered into a turnaround mode, which is evidenced by better metrics at pretty much everything. Clearly, we cannot double the financial performance of a company in a year, but the signs are very positive. On renewables, the rollout of additional megawatts is adding to the portfolio. As a result, we are seeing some improvements there as well. On financials, I won't go into detail. Vasilis will be covering those later. It suffice to say that it is a record half year, and it looks like the remaining of the year will be at least as good, if not better. The outlook, I just mentioned that performance for the remaining of the year is going to be at least as good. We see that subject to the two armed conflicts in Ukraine and the Gulf, we will continue to be seeing a higher than mid-cycle performance.

Andreas Shiamishis: The company has entered into a turnaround mode, which is evidenced by better metrics at pretty much everything. Clearly, we cannot double the financial performance of a company in a year, but the signs are very positive. On renewables, the rollout of additional megawatts is adding to the portfolio. As a result, we are seeing some improvements there as well. On financials, I won't go into detail. Vasilis will be covering those later. It suffice to say that it is a record half year, and it looks like the remaining of the year will be at least as good, if not better. The outlook, I just mentioned that performance for the remaining of the year is going to be at least as good. We see that subject to the two armed conflicts in Ukraine and the Gulf, we will continue to be seeing a higher than mid-cycle performance.

Speaker #2: On renewables, the rollout of additional megawatts is adding to the portfolio. And as a result, we are seeing some improvements there as well. On financials, I won't go into detail.

Speaker #2: Vasilis will be covering those later. It's a fish to say that it is a record half year. And it looks like the remaining of the year will be at least as good, if not better.

Speaker #2: The outlook I just mentioned that performance for the remaining of the year is going to be at least as good. And we see that subject to the two armed conflicts in Ukraine and the Gulf, we will continue to be seeing a higher than mid-cycle performance.

Speaker #2: The rollout of capacity on the renewables mainly is continuing as planned. It's up to us to effectively accelerate even faster. And the increased profitability does give us the ability to deploy faster our investment plans, both in hydrocarbons and renewables.

[Company Representative] (HELLENiQ ENERGY): The rollout of capacity of the renewables mainly is continuing as planned. It's up to us to effectively accelerate even faster, the increased profitability does give us the ability to deploy faster our investment plans, both in hydrocarbons and renewables. I will end this introduction by just referring to the E&P portfolio, where we've completed the transfer of the 20% of Block 10 to Chevron, which effectively leaves us with 5 blocks that we are effectively exploring with Chevron. One block, which is soon to be drilled, Block 2 in the Ionian, and also 2 other blocks, Southwest Crete, which is currently 70% ExxonMobil and 30% ourselves, and the Ionian block, which is 100% HELLENiQ ENERGY. That's taking form. It is a portfolio which changes, and that's the point.

Andreas Shiamishis: The rollout of capacity of the renewables mainly is continuing as planned. It's up to us to effectively accelerate even faster, the increased profitability does give us the ability to deploy faster our investment plans, both in hydrocarbons and renewables. I will end this introduction by just referring to the E&P portfolio, where we've completed the transfer of the 20% of Block 10 to Chevron, which effectively leaves us with 5 blocks that we are effectively exploring with Chevron. One block, which is soon to be drilled, Block 2 in the Ionian, and also 2 other blocks, Southwest Crete, which is currently 70% ExxonMobil and 30% ourselves, and the Ionian block, which is 100% HELLENiQ ENERGY. That's taking form. It is a portfolio which changes, and that's the point.

Speaker #2: I will end this introduction by just referring to the EMP portfolio, where we've completed the transfer of the 70% of block 10 to Chevron, which effectively leaves us with five blocks that we are effectively exploring.

Speaker #2: With Chevron, one block which is soon to be drilled, block two in the Ionian, and also two other blocks: southwest Crete, which is currently 70% X and 30% ourselves, and the Ionian block, which is 100% Hellenic.

Speaker #2: So that's taken form. It is a portfolio which changes, and that's the point. We focus on what we can do and what we should be looking into utilizing international expertise.

[Company Representative] (HELLENiQ ENERGY): We focus on what we can do and what we should be looking into, utilizing international expertise and hoping that we'll be able to get something at the end of this process.

Andreas Shiamishis: We focus on what we can do and what we should be looking into, utilizing international expertise and hoping that we'll be able to get something at the end of this process. Over to Kostas for the market background. Sorry.

Speaker #2: And hoping that we'll be able to get something at the end of this process. So over to Vasilis now for the to Kostas for the market background.

[Company Representative] (HELLENiQ ENERGY): Over to Kostas for the market background. Sorry.

Speaker #2: Sorry.

Speaker #1: Thank you, Andrea. Good afternoon. Starting off with the industry environment, the quarter was dominated by geopolitics, as has already been mentioned. There was a lot of volatility at both crude absolute crude prices and relative cracks.

Dinos Panas: Thank you, Andreas. Good afternoon. Starting off with the industry environment, the quarter was dominated by geopolitics, as has already been mentioned. There was a lot of volatility at both absolute crude prices and relative cracks. Brent prices averaged about $105, and from the end of Q1, were mostly dropping up until the last few days of June. Product cracks improved during the quarter, reaching very high levels for distillates and gasoline. Smaller numbers and a small decline for naphtha and fuel oils. Our system benchmark margin averaged $9.5 per barrel, which is a bit less than the previous quarter, but well above the $5.7 average last year same period. If we focus on the domestic market. The domestic market declined by 6% during Q2, driven mostly by reduced LPG and gasoline demand, as prices had reached high levels.

Kostas Karachalios: Thank you, Andreas. Good afternoon. Starting off with the industry environment, the quarter was dominated by geopolitics, as has already been mentioned. There was a lot of volatility at both absolute crude prices and relative cracks. Brent prices averaged about $105, and from the end of Q1, were mostly dropping up until the last few days of June. Product cracks improved during the quarter, reaching very high levels for distillates and gasoline. Smaller numbers and a small decline for naphtha and fuel oils. Our system benchmark margin averaged $9.5 per barrel, which is a bit less than the previous quarter, but well above the $5.7 average last year same period. If we focus on the domestic market. The domestic market declined by 6% during Q2, driven mostly by reduced LPG and gasoline demand, as prices had reached high levels.

Speaker #1: Brent prices averaged about 105 dollars, and were mostly from the end of Q1, were mostly dropping up until the last few days of June.

Speaker #1: Product cracks improved during the quarter, reaching very high levels for distillates. And gasoline smaller numbers and small declines for nafta and fuel oils. Our system benchmark margin averaged 9.5 dollars per barrel, which is a bit less than the previous quarter, but well above the 5.7 average last year, same period.

Speaker #1: If we focus on the domestic market, the domestic market declined by 6% during the second quarter, driven mostly by reduced LPG and gasoline demand as prices had reached high levels.

Speaker #1: Overall, diesel demand was stable, if not rising a bit. The fuel aviation fuels for the Greek airports is showing a steady increase from the start of the year and has reached 6% year quarter on quarter raise.

Dinos Panas: Overall, diesel demand was stable, if not rising a bit. The previous aviation fuels for the Greek airports is showing a steady increase from the start of the year and has reached 6% quarter-on-quarter raise, while bunkering has dropped a bit due to a bit lower demand of marine gas oil. Vasilis, over to you.

Kostas Karachalios: Overall, diesel demand was stable, if not rising a bit. The previous aviation fuels for the Greek airports is showing a steady increase from the start of the year and has reached 6% quarter-on-quarter raise, while bunkering has dropped a bit due to a bit lower demand of marine gas oil. Vasilis, over to you.

Speaker #1: While bunkering has dropped a bit due to a bit lower demand of marine gas oil. Vasilis, over to you.

Speaker #2: Thank you, Kosta. Good afternoon to all of you attending our call this afternoon. Moving on to the environment on the abgas and electricity. Effectively, as a result of the crisis, we saw natural gas prices escalating.

[Company Representative] (HELLENiQ ENERGY): Thank you, Kostas. Good afternoon to all of you attending our call this afternoon. Moving on to the environment on nat gas and electricity. Effectively, as a result of the crisis, we saw natural gas prices escalating as expected around the 40s and 50s during the quarter, averaging EUR 46, significantly higher than either the previous quarters or the last quarter, similar quarter of last year. The impact on electricity price has been largely contained, mainly due to the fact of the penetration of renewables in the energy mix, which is certainly higher than what it used to be in a similar situation, perhaps three or four years ago with the Russian crisis. In terms of generation, the increase in renewables is also reflected here, similar percentage at a much higher production base, and Greece being a net exporter to nearby countries.

Vasilis Tsaitas: Thank you, Kostas. Good afternoon to all of you attending our call this afternoon. Moving on to the environment on nat gas and electricity. Effectively, as a result of the crisis, we saw natural gas prices escalating as expected around the 40s and 50s during the quarter, averaging EUR 46, significantly higher than either the previous quarters or the last quarter, similar quarter of last year. The impact on electricity price has been largely contained, mainly due to the fact of the penetration of renewables in the energy mix, which is certainly higher than what it used to be in a similar situation, perhaps three or four years ago with the Russian crisis. In terms of generation, the increase in renewables is also reflected here, similar percentage at a much higher production base, and Greece being a net exporter to nearby countries.

Speaker #2: As expected, around the 40s and 50s during the quarter, averaging 46, significantly higher than either the previous quarters or the last quarter the similar quarter of last year.

Speaker #2: The impact on electricity price has been largely contained, mainly due to the fact of the penetration of renewables in the energy mix, which is certainly higher than what it used to be in a similar situation, perhaps three or four years ago with the Russian crisis.

Speaker #2: In terms of generation, Greece continues to be I mean, the increase in renewables is also reflected here. So similar percentage at a much higher production base.

Speaker #2: And Greece being a net exporter to nearby countries. So moving on to discuss a little bit more in detail our performance so a quarter of almost normal operations, let me remind you that as property was started on the turnaround only after Easter.

[Company Representative] (HELLENiQ ENERGY): Moving on to discuss a little bit more in detail our performance. A quarter of almost normal operations. Let me remind you that, Aspropyrgos was started from a turnaround only after Easter, missed out perhaps two or three weeks from the quarter. Elefsina had a pit stop at the hydrocracker during June, a planned one for the change of catalyst. Production and sales, much higher than last year, because last year, let me remind you, had the full turnaround at Elefsina at 3.8 million tons. And for H1 at 6.8 million tons. Similarly, higher volumes at marketing and power. Power includes obviously the incorporation of Enerwave. We have a annualization. It's the last quarter that the comparables of last year did not include Enerwave.

Vasilis Tsaitas: Moving on to discuss a little bit more in detail our performance. A quarter of almost normal operations. Let me remind you that, Aspropyrgos was started from a turnaround only after Easter, missed out perhaps two or three weeks from the quarter. Elefsina had a pit stop at the hydrocracker during June, a planned one for the change of catalyst. Production and sales, much higher than last year, because last year, let me remind you, had the full turnaround at Elefsina at 3.8 million tons. And for H1 at 6.8 million tons. Similarly, higher volumes at marketing and power. Power includes obviously the incorporation of Enerwave. We have a annualization. It's the last quarter that the comparables of last year did not include Enerwave.

Speaker #2: So missed out perhaps two or three weeks from the quarter. Lepsina had a pit stop at the hydro cracker during June, a planned one, for the change of catalyst.

Speaker #2: So production and sales much higher than last year, because last year, let me remind you, had the full turnaround at Lepsina. At 3.8 million tons.

Speaker #2: And for the half of the year at 6.8. Similarly, higher volumes at marketing and power includes obviously the incorporation of Enerway. We have the annualization is the last quarter that the comparables of last year did not include Enerway.

Speaker #2: Adjusted BDA of 442 million for the quarter and more than 700 million for the half year. With refining almost doubling its contribution for the quarter.

[Company Representative] (HELLENiQ ENERGY): Adjusted EBITDA of EUR 442 million for the quarter and more than EUR 700 million for the H1, with refining almost doubling its contribution for the quarter. Petrochemicals recovering from the lows of the last few quarters, mainly driven by the supply constraints due to the crisis of Hormuz. Marketing, better performance both in our domestic business and our international, and power, largely driven by the very strong performance of Enerwave, even if we compare their reported numbers last year. Before we go to cash flow, during the H1, CapEx and investments in total exceeded EUR 400 million. This is the highest we've posted on a H1 ever. Driven by the turnaround at Aspropyrgos Refinery that we discussed before, as well as the addition of the two PV parks in Romania, with the two more coming in the next few weeks.

Vasilis Tsaitas: Adjusted EBITDA of EUR 442 million for the quarter and more than EUR 700 million for the H1, with refining almost doubling its contribution for the quarter. Petrochemicals recovering from the lows of the last few quarters, mainly driven by the supply constraints due to the crisis of Hormuz. Marketing, better performance both in our domestic business and our international, and power, largely driven by the very strong performance of Enerwave, even if we compare their reported numbers last year. Before we go to cash flow, during the H1, CapEx and investments in total exceeded EUR 400 million. This is the highest we've posted on a H1 ever. Driven by the turnaround at Aspropyrgos Refinery that we discussed before, as well as the addition of the two PV parks in Romania, with the two more coming in the next few weeks.

Speaker #2: Petrochemicals recovering from the loss of the last few quarters mainly driven by the supply constraint due to the crisis of hormones. Marketing better performance both in our domestic business and our international and power largely driven by the very strong performance of EnerWave even if we compare their reported numbers last year.

Speaker #2: In terms of cash flow before we go to cash flow, we the first half during the first half capex and investments in total exceeded 400 million.

Speaker #2: This is the highest we've posted on a first semester ever. Driven by the turnaround that we were refinery that we discussed before, as well as the addition of the two PV parks in Romania, with the two more coming in the next few weeks.

Speaker #2: So despite relatively heavy maintenance half the normalization of working capital because let me remind you, the first quarter we had the impact on the supply chain because of the as property was turned around together with the start of the crisis.

[Company Representative] (HELLENiQ ENERGY): Despite a relatively heavy maintenance H1, the normalization of working capital, because let me remind you, the Q1 we had the impact on the supply chain because of the Aspropyrgos turnaround together with the start of the crisis. This has largely normalized. As a result of that, the Q2 cash flow was around $300 million, and the impact on the net debt versus the previous quarter was $700 million, a significantly better performance. In terms of our profitability and how it would connect with last year, we discussed about the impact of benchmark margins. On top of that, we had very strong margin capture because of the crude differentials, and we certainly paid more than normal for crude supply, especially at the height of the crisis during April and May. We paid much lower than what the benchmark was.

Vasilis Tsaitas: Despite a relatively heavy maintenance H1, the normalization of working capital, because let me remind you, the Q1 we had the impact on the supply chain because of the Aspropyrgos turnaround together with the start of the crisis. This has largely normalized. As a result of that, the Q2 cash flow was around $300 million, and the impact on the net debt versus the previous quarter was $700 million, a significantly better performance. In terms of our profitability and how it would connect with last year, we discussed about the impact of benchmark margins. On top of that, we had very strong margin capture because of the crude differentials, and we certainly paid more than normal for crude supply, especially at the height of the crisis during April and May. We paid much lower than what the benchmark was.

Speaker #2: This has largely normalized as a result of that. The second quarter cash flow was around 300 million. And the impact on the net debt versus the previous quarter was 700 million significantly better performance.

Speaker #2: In terms of our profitability and how it how it would connect with last year, as you I mean, we discussed about the impact of benchmark margins on top of that, we had very strong margin capture because of the crew differentials.

Speaker #2: And we certainly paid more than normal to for crude supply, especially at the height of the crisis during April and May. Still, we paid much lower than what the benchmark was.

Speaker #2: And that margin capture is also reflected on the overperformance. Similarly, in terms of our operations and ability to realize especially export premia because of the shortage in diesel and jet, we were able to maximize the production of both with the Lepsina running flat out.

[Company Representative] (HELLENiQ ENERGY): That margin capture is also reflected on the overall performance. Similarly, in terms of our operations and ability to realize, especially export premium because of the shortage in diesel and jet, we were able to maximize the production of both with Elefsina running flat out, and to the extent possible, squeezing a bit more the production towards middle distillates because of the shortage in our market and the region in general. That, teamed with higher export premia that we were able to realize and achieve a much better performance in that respect. The net impact of the maintenance in terms of volumes was certainly lower because last year we had the full turnaround at Elefsina throughout the quarter, more or less. However, that came at a much lower impact in terms of lost profitability because of the very high margins, if we look at the Q2 of 2026.

Vasilis Tsaitas: That margin capture is also reflected on the overall performance. Similarly, in terms of our operations and ability to realize, especially export premium because of the shortage in diesel and jet, we were able to maximize the production of both with Elefsina running flat out, and to the extent possible, squeezing a bit more the production towards middle distillates because of the shortage in our market and the region in general. That, teamed with higher export premia that we were able to realize and achieve a much better performance in that respect. The net impact of the maintenance in terms of volumes was certainly lower because last year we had the full turnaround at Elefsina throughout the quarter, more or less. However, that came at a much lower impact in terms of lost profitability because of the very high margins, if we look at the Q2 of 2026.

Speaker #2: And to the extent possible, squeezing a bit more the production towards mid-distillates because of the shortage in our markets and the region in general.

Speaker #2: That came with higher export premia that we were able to realize and achieve a much better performance in that respect. The net impact of the maintenance in terms of volumes was certainly lower because last year we had the full turnaround at Lepsina throughout the quarter more or less.

Speaker #2: However, that came at a much lower impact in terms of lost profitability because of the very high margins if we look at the second quarter of 2026.

Speaker #2: And one more point is the accounting profit and the cash profit that came from the farming out of block 10 and the partnership of with Chevron.

[Company Representative] (HELLENiQ ENERGY): One more point is the accounting profit and the cash profit that came from the farming out of Block 10 and the partnership with Chevron. That is also included in our EBITDA numbers. In terms of our balance sheet, as we discussed before, the very strong cash flows result in a deleverage both on an absolute basis with net debt below $2 billion and having the bulk of the CapEx already behind us for the year. What is coming for the H2, there's not much in refining really, as we push the Thessaloniki turnaround for next year. There is the acquisition of the two more Romanian PV parks. The battles will be connected, but the CapEx has been largely spent. There's not much we would expect compared to the H1 in terms of CapEx.

Vasilis Tsaitas: One more point is the accounting profit and the cash profit that came from the farming out of Block 10 and the partnership with Chevron. That is also included in our EBITDA numbers. In terms of our balance sheet, as we discussed before, the very strong cash flows result in a deleverage both on an absolute basis with net debt below $2 billion and having the bulk of the CapEx already behind us for the year. What is coming for the H2, there's not much in refining really, as we push the Thessaloniki turnaround for next year. There is the acquisition of the two more Romanian PV parks. The battles will be connected, but the CapEx has been largely spent. There's not much we would expect compared to the H1 in terms of CapEx.

Speaker #2: That is also included in the in our bidder numbers. In terms of our balance sheet, as we discussed before, the very strong cash flows result in a deleverage both on an absolute basis with net debt below 2 billion and having the bulk of the capex already behind us for the year.

Speaker #2: So what is coming for the second half, there's not much in refining really, as we push the Thessaloniki turnaround for next year. So there is the acquisition of the two more Romanian PV parks the battles will be connected, but the capex has been largely spent.

Speaker #2: And then so there's not much we would expect compared to the first half for in terms of capex. So the cash flow generation will be even better in the third quarter.

[Company Representative] (HELLENiQ ENERGY): The cash flow generation will be even better in Q3. Still, if you look even on a relative basis, a leverage of 1.3 based on our last 12 months numbers. If you look at downstream, it's actually one courtesy of both the higher profitability, higher EBITDA, but as well as the very low net debt figures on an absolute basis. We'll move on to discuss a little bit the business performance in each of our strategic business units. In terms of refining, not much to add on page 15. We'll discuss more in detail about the margin capture. Almost EUR 250 million CapEx for H1 including mostly the full turnaround and the improvement works at Aspropyrgos Refinery.

Vasilis Tsaitas: The cash flow generation will be even better in Q3. Still, if you look even on a relative basis, a leverage of 1.3 based on our last 12 months numbers. If you look at downstream, it's actually one courtesy of both the higher profitability, higher EBITDA, but as well as the very low net debt figures on an absolute basis. We'll move on to discuss a little bit the business performance in each of our strategic business units. In terms of refining, not much to add on page 15. We'll discuss more in detail about the margin capture. Almost EUR 250 million CapEx for H1 including mostly the full turnaround and the improvement works at Aspropyrgos Refinery.

Speaker #2: Still, if we look even on a relative basis, leverage of 1.3 based on our last 12 months numbers, if you look our downstream, it's actually 1.

Speaker #2: Courtesy of both the higher profitability, higher BDA, but as well as the very low net debt figures on an absolute basis. So we'll move on to discuss a little bit the business performance in each of our strategic business unit.

Speaker #2: In terms of refining, not much to add on page 15. We'll discuss more in detail about the margin capture. Almost 250 million capex for the half, including mostly the full turnaround and the improvement works at as property refinery.

Speaker #2: Let me comment here that out of the improvement projects, we have already seen a very strong performance at as property refinery. Especially at the energy efficiency projects at the reformer unit, and certainly the fresh beginning of run performance is as expected and even a little bit better than we anticipated.

[Company Representative] (HELLENiQ ENERGY): Let me comment here that out of the improvement projects, we have already seen a very strong performance at Aspropyrgos Refinery, especially at the energy efficiency projects at the reformer units. Certainly the fresh beginning of run performance is as expected and even a little bit better than we anticipated. On the operations page, let me highlight the very good yields of middle distillates, a result of Elefsina operating at full capacity, as well as our efforts and the selection of crude with the proper netbacks in order to maximize output of diesel and jet. On sales, let me highlight the 270,000 tons of crude. This refers to two cargoes that we were effectively able to trade during the quarter. It was a kind of difficult situation in the sense that we had to make sure that we had enough crude. The market was very volatile.

Vasilis Tsaitas: Let me comment here that out of the improvement projects, we have already seen a very strong performance at Aspropyrgos Refinery, especially at the energy efficiency projects at the reformer units. Certainly the fresh beginning of run performance is as expected and even a little bit better than we anticipated. On the operations page, let me highlight the very good yields of middle distillates, a result of Elefsina operating at full capacity, as well as our efforts and the selection of crude with the proper netbacks in order to maximize output of diesel and jet. On sales, let me highlight the 270,000 tons of crude. This refers to two cargoes that we were effectively able to trade during the quarter. It was a kind of difficult situation in the sense that we had to make sure that we had enough crude. The market was very volatile.

Speaker #2: So on the operations page, let me highlight the very good yields of mid-distillates. Result of Lepsina operating at full capacity as well as our efforts and the selection of crudes with the proper net banks in order to maximize output of diesel and jet.

Speaker #2: And on sales, let me highlight the 270,000 tons of crude. This refers to two cargoes that we were effectively able to trade during the quarter.

Speaker #2: It was a kind of difficult situation in the sense that we had to make sure that we had enough crude. The market was very volatile.

Speaker #2: Amid this environment, our S&T team in Geneva was able to take advantage of opportunities that arose in terms of both the forward curve as well as the net banks, the relative net banks between the various crew types.

[Company Representative] (HELLENiQ ENERGY): Amid this environment, our S&T team in Geneva was able to take advantage of opportunities that arose in terms of both the forward curve as well as the relative netbacks between the various crude types, and made two trades in May and June with a very good outcome for the business and financially, obviously. In terms of profitability, the benchmark margin at around $10 per barrel in Q2 was a bit distorted in the sense that that included a significant premium on the crude. If you would look at Brent-based refining margin, assuming that there was no cost or discount on the crude, the number would be something like double that. The overperformance includes other than the very good export premia, a significant discount, effectively, relative discount, that we were able to realize on the crude supply versus the benchmark.

Vasilis Tsaitas: Amid this environment, our S&T team in Geneva was able to take advantage of opportunities that arose in terms of both the forward curve as well as the relative netbacks between the various crude types, and made two trades in May and June with a very good outcome for the business and financially, obviously. In terms of profitability, the benchmark margin at around $10 per barrel in Q2 was a bit distorted in the sense that that included a significant premium on the crude. If you would look at Brent-based refining margin, assuming that there was no cost or discount on the crude, the number would be something like double that. The overperformance includes other than the very good export premia, a significant discount, effectively, relative discount, that we were able to realize on the crude supply versus the benchmark.

Speaker #2: And made two trades in May and June with very good outcome for the business and financial, obviously. In terms of profitability, the benchmark margin at around $10 per barrel in the second quarter was a bit distorted in the sense that that included a significant premium on the crude.

Speaker #2: So if you would look at brand-based refining margin so assuming that there was no cost or discount on the crude, the number would be something like double that.

Speaker #2: So the overperformance includes other than the very good export premia, a significant discount effectively, relative discount that we were able to realize on the crude supply versus the benchmark.

Speaker #2: Petrochemicals, we've seen a stronger spike in the benchmark PP margin hovering even above the 700 million 700, sorry, Euro per ton that was the average for the quarter to a large extent we were able to take advantage of this with the business operating normally with the exception of the first couple of weeks of April because of no output from the as property was splitter.

[Company Representative] (HELLENiQ ENERGY): Petrochemicals, we've seen a strong spike in the benchmark PP margin, hovering above the EUR 700 million ton that was the average for Q2. To a large extent, we're able to take advantage of this with the business operating normally, with the exception of the first couple of weeks of April because of no output from the Aspropyrgos splitter. Margins have corrected since, still they are in areas much better and much more favorable than the previous few quarters. In terms of our fuels marketing business, important to note a very difficult environment in the sense that the prices were high. Consumption was slightly affected, more so on the premium fuels that we've been focusing a lot on in the last few years. We also had the margin cap for several weeks during the crisis. Despite this environment, our business continue delivering much better results.

Vasilis Tsaitas: Petrochemicals, we've seen a strong spike in the benchmark PP margin, hovering above the EUR 700 million ton that was the average for Q2. To a large extent, we're able to take advantage of this with the business operating normally, with the exception of the first couple of weeks of April because of no output from the Aspropyrgos splitter. Margins have corrected since, still they are in areas much better and much more favorable than the previous few quarters. In terms of our fuels marketing business, important to note a very difficult environment in the sense that the prices were high. Consumption was slightly affected, more so on the premium fuels that we've been focusing a lot on in the last few years. We also had the margin cap for several weeks during the crisis. Despite this environment, our business continue delivering much better results.

Speaker #2: Margins have corrected since, but still they are in areas much better and much more favorable than the previous few quarters. In terms of our fields marketing business, important to note a very difficult environment in the sense that the prices were high, consumption was slightly affected but more so on the premium fuels that we've been focusing a lot in the last few years.

Speaker #2: We also had the margin cap for several weeks during the crisis. Despite this environment, our business continued delivering much better results, a very strong momentum that we capitalized on.

[Company Representative] (HELLENiQ ENERGY): A very strong momentum that we capitalized on. A very good performance, improved the NFR. Overall, better profitability both on the quarter and the six-month basis. In Q2, also, very strong aviation business performance that we were able to take advantage of. In our international marketing business, the backdrop in the sense of sanctions affecting refineries in the region and reducing supply options brings all the group companies at a much better position and having to cover the shortfall. Also, the operation now, it's already more than six months of the diesel converted pipeline between the Thessaloniki refinery and our OKTA facilities enables the transfer of products at a much lower cost and much higher volumes in order to cover also the deficit in the market. As a result of that, improved volumes mostly on the wholesale as well as EBITDA.

Vasilis Tsaitas: A very strong momentum that we capitalized on. A very good performance, improved the NFR. Overall, better profitability both on the quarter and the six-month basis. In Q2, also, very strong aviation business performance that we were able to take advantage of. In our international marketing business, the backdrop in the sense of sanctions affecting refineries in the region and reducing supply options brings all the group companies at a much better position and having to cover the shortfall. Also, the operation now, it's already more than six months of the diesel converted pipeline between the Thessaloniki refinery and our OKTA facilities enables the transfer of products at a much lower cost and much higher volumes in order to cover also the deficit in the market. As a result of that, improved volumes mostly on the wholesale as well as EBITDA.

Speaker #2: A very good performance improved the NFR, and overall better profitability both on the quarter and the six-month basis. In the second quarter, also very strong aviation business performance that we were able to take advantage of.

Speaker #2: In our international marketing business, the backdrop in the sense of sanctions affecting refineries in the region and reducing supply options brings all the group companies at a much better position and having to cover the shortfall.

Speaker #2: Also, the operation now it's already more than six months of the diesel of the diesel converter pipeline between the Thessaloniki refinery and our Okta facilities.

Speaker #2: Enables the transfer of products at a much lower cost and much higher volumes. In order to cover also the deficit in the market and as a result of that, improved volumes mostly on the wholesale as well as EBITDA.

Speaker #2: At this point, I'll pass you over to George Alexopoulos that will discuss our business. Yorgo.

[Company Representative] (HELLENiQ ENERGY): At this point, I'll pass you over to Georgios Alexopoulos, that will discuss our power business. George?

Vasilis Tsaitas: At this point, I'll pass you over to George Alexopoulos, that will discuss our power business. George?

Speaker #1: Thank you, Vasili. Good afternoon, everybody. On page 24, we show our power business key numbers. And since we did not consolidate EnerWave, the Enel Patterson in Q2 of '25, we're showing it on a proforma basis to enable comparisons.

Georgios Alexopoulos: Thank you, Vasilis. Good afternoon, everybody. On page 24, we show our power business key numbers. Since we did not consolidate Enerwave and Elpedison in Q2 of 2025, we're showing it on a pro forma basis to enable comparisons. On the operating capacity, we have about 60 MW more as a result of the completion of two of our Romanian PVs. Power generation is essentially flat, although the mix is somewhat different. EBITDA is considerably higher as a result of a marked improvement on the Enerwave side. Both the turnaround of the retail business and better balancing market opportunities contributed to this increase. On the renewables side, we're starting to see the contribution of our Romanian assets. The market remained challenging in Greece as a result of curtailments and very low prices during the midday hours.

George Alexopoulos: Thank you, Vasilis. Good afternoon, everybody. On page 24, we show our power business key numbers. Since we did not consolidate Enerwave and Elpedison in Q2 of 2025, we're showing it on a pro forma basis to enable comparisons. On the operating capacity, we have about 60 MW more as a result of the completion of two of our Romanian PVs. Power generation is essentially flat, although the mix is somewhat different. EBITDA is considerably higher as a result of a marked improvement on the Enerwave side. Both the turnaround of the retail business and better balancing market opportunities contributed to this increase. On the renewables side, we're starting to see the contribution of our Romanian assets. The market remained challenging in Greece as a result of curtailments and very low prices during the midday hours.

Speaker #1: On the operating capacity, we have about 60 megawatts more as a result of the completion of two of our Romanian PVs. Power generation is essentially flat, although the mix is somewhat different.

Speaker #1: EBITDA is considerably higher as a result of a marked improvement on the EnerWave side. Both the turnaround of the retail business and better balancing market opportunities contributed to this increase.

Speaker #1: And on the renewables side, we're starting to see the contribution of our Romanian assets the market remained challenging in Greece as a result of curtailments and very low prices during the midday hours.

Speaker #1: I will skip page 25 with the numbers. I'm sure you have reviewed them. And go to page 26 to update you on our renewables development plan.

Georgios Alexopoulos: I will skip page 25 with the numbers, I'm sure you have reviewed them, and go to page 26 to update you on our renewables development plan. As you can see on the graph on the left side, we have currently over half a gigawatt under construction. Most of the projects are in Southeastern Europe. Out of these projects, we expect to have 250 MW of PV and battery projects entering operation in this quarter. The path to one and a half gigawatt by 2028 remains secure. Through our pipeline, we can also comfortably achieve the two gigawatt target in 2030. Our technology mix remains diverse, both at the operating level and the pipeline level. As we roll out our plans in Southeastern Europe, our geographical diversification increases. With this, I think I will close our presentation. I will turn it over to questions. Thank you.

George Alexopoulos: I will skip page 25 with the numbers, I'm sure you have reviewed them, and go to page 26 to update you on our renewables development plan. As you can see on the graph on the left side, we have currently over half a gigawatt under construction. Most of the projects are in Southeastern Europe. Out of these projects, we expect to have 250 MW of PV and battery projects entering operation in this quarter. The path to one and a half gigawatt by 2028 remains secure. Through our pipeline, we can also comfortably achieve the two gigawatt target in 2030. Our technology mix remains diverse, both at the operating level and the pipeline level. As we roll out our plans in Southeastern Europe, our geographical diversification increases. With this, I think I will close our presentation. I will turn it over to questions. Thank you.

Speaker #1: As you can see on the graph on the left side, we have currently over half a gigawatt under construction, most of the projects are in southeastern Europe, and out of these projects, we expect to have 250 megawatts of PV and battery projects entering operation in this quarter.

Speaker #1: The path to one gigawatt, one and a half gigawatt by 2028 remains secure. And through our pipeline, we can also comfortably achieve the two gigawatt target in 2030.

Speaker #1: Our technology mix remains diverse, both at the operating level and the pipeline level. And as we roll out our plans in southeastern Europe, our geographical diversification increases.

Speaker #1: And with this, I think I will close our presentation. I will turn it over to questions. Thank you.

Speaker #2: The first question is from the line of George Grigoriou with Wood & Co. Please go ahead.

Operator: The first question is from the line of George Figario with Wood & Company. Please go ahead.

Operator: The first question is from the line of George Grigoriou with WOOD & Co. Please go ahead.

Speaker #3: Yes, hello. Thank you for taking my questions. I've got three, please. I'll shoot them all out together. One, if you could please explain in the refining segment the main difference between reported EBITDA and adjusted.

George Figario: Yes. Hello. Thank you for taking my questions. I've got three, please. I'll shoot them all out together. One, if you could please explain in the refining segment, the main difference between reported EBITDA and adjusted, given that Brent prices towards the end of Q2 were lower than what they were at the end of Q1. That is my first question. The other question relates to marketing. There was a substantial decrease in the number of petrol stations quarter on quarter. I presume that relates to dealer-owned network. If you could give us some color on how you see that evolving in the remainder of the year or going forward, if you like. My third question is, you mentioned something about an accounting gain from the farm-out of your E&P.

George Grigoriou: Yes. Hello. Thank you for taking my questions. I've got three, please. I'll shoot them all out together. One, if you could please explain in the refining segment, the main difference between reported EBITDA and adjusted, given that Brent prices towards the end of Q2 were lower than what they were at the end of Q1. That is my first question. The other question relates to marketing. There was a substantial decrease in the number of petrol stations quarter on quarter. I presume that relates to dealer-owned network. If you could give us some color on how you see that evolving in the remainder of the year or going forward, if you like. My third question is, you mentioned something about an accounting gain from the farm-out of your E&P.

Speaker #3: Given that rent prices towards the end of the second quarter were lower than what they were at the end of the first quarter, that is my first question.

Speaker #3: The other question relates to marketing. There was a substantial decrease in the number of petrol stations. Quarter on quarter, I presume that relates to dealer-owned network.

Speaker #3: If you could give us some color in how you see that evolving in the remainder of the year or going forward, if you like.

Speaker #3: And my third question is, you mentioned something about an accounting gain from the farm out of your EMP. And I suppose that, if you could explain to us a bit more what that means gain at the other line in EBITDA relates to, I suppose that's it.

George Figario: I suppose that if you could explain to us a bit more what that main gain at the other line in EBITDA relates to, I suppose that's it. Whether that is actually a net of taxes, or a capital gain. Thank you.

George Grigoriou: I suppose that if you could explain to us a bit more what that main gain at the other line in EBITDA relates to, I suppose that's it. Whether that is actually a net of taxes, or a capital gain. Thank you.

Speaker #3: And whether that is actually net of tax as well, capital gain. Thank you.

Speaker #4: Vasilis, do you want to take the at least the first and the third question?

Georgios Alexopoulos: Vasilis, do you want to take at least the first and third question?

Andreas Shiamishis: Vasilis, do you want to take at least the first and third question?

Speaker #3: Yeah, sure. Thank you. Thank you, Yorgo, for the question. In terms of our reported versus adjusted EBITDA, the main it's 90%, 95% is inventory gains, right?

[Company Representative] (HELLENiQ ENERGY): Sure. Thank you. Thank you, George, for the question. In terms of our reported versus adjusted EBITDA, 95% is inventory gains. In Q1, we recorded something like EUR 150 million. The reason for that, two reasons. One is, we don't do FIFO, we do weighted average. The increase of the prices takes some time to replenish to our inventory. The price increase takes some time to get through both ways, and that explains also how we see the decline. That's one thing. The second is that the crude we acquired versus the benchmark, first of all, is the Dated Brent versus the ICE, and the premium on top of that. The realized price of procurement is actually higher than the Brent price that you see on the screen.

Vasilis Tsaitas: Sure. Thank you. Thank you, George, for the question. In terms of our reported versus adjusted EBITDA, 95% is inventory gains. In Q1, we recorded something like EUR 150 million. The reason for that, two reasons. One is, we don't do FIFO, we do weighted average. The increase of the prices takes some time to replenish to our inventory. The price increase takes some time to get through both ways, and that explains also how we see the decline. That's one thing. The second is that the crude we acquired versus the benchmark, first of all, is the Dated Brent versus the ICE, and the premium on top of that. The realized price of procurement is actually higher than the Brent price that you see on the screen.

Speaker #3: So in the first quarter, we recorded something like 150 million. The reason for that, it was two reasons, right? One is we don't do five, we do weighted average.

Speaker #3: So the increase of the prices takes some time to replenish through our inventory. So the price increase takes some time to get through both ways, and that explains also how see the decline.

Speaker #3: That's one thing. The second is that the crude we acquired versus the benchmark first of all is the gated brand versus the IC. And the premium on top of that.

Speaker #3: So the realized price that of procurement is actually higher than the brand price that you see on the screen. And the third one is that we were a little bit late to record those numbers because of the lower sales in March because of the turnaround.

[Company Representative] (HELLENiQ ENERGY): The third one is that we were a little bit late to record those numbers because of the lower sales in March, because of the spot we were turning around. The result of that is pushing the inventory gains mostly in April and May effectively. In June, we recorded a small loss, to be honest, because the prices went down. The prices went up a bit. Let's see in Q3, if prices remain at EUR 80 or below, then we should see additional losses. The partial offset of the gains recorded so far. In terms of the impact of the farm-out with Chevron, effectively, the agreement was a cash consideration for the expenses that we have paid up until the farming in of Chevron.

Vasilis Tsaitas: The third one is that we were a little bit late to record those numbers because of the lower sales in March, because of the spot we were turning around. The result of that is pushing the inventory gains mostly in April and May effectively. In June, we recorded a small loss, to be honest, because the prices went down. The prices went up a bit. Let's see in Q3, if prices remain at EUR 80 or below, then we should see additional losses. The partial offset of the gains recorded so far. In terms of the impact of the farm-out with Chevron, effectively, the agreement was a cash consideration for the expenses that we have paid up until the farming in of Chevron.

Speaker #3: So the result of that is pushing the inventory gains mostly in April and May effectively. And in June, we recorded a small loss to be honest because of the prices went down.

Speaker #3: The prices went up a bit. So let's see in the third quarter if prices remain at 80 or below, then we should see we should see additional losses.

Speaker #3: So the partial offset of the gains reported so far. In terms of the impact of the farm out with Chevron effectively the agreement was a cash consideration for the expenses that we have paid up until the farming in of Chevron.

Speaker #3: That was around 17 million, which given the fact that we had that those had gone through our OPEX in the previous years, it's a gain of 17 million which is net of taxes.

[Company Representative] (HELLENiQ ENERGY): That was around EUR 17 million, which given the fact that those had gone through our OpEx in the previous years, it's a gain of EUR 17 million, which is net of taxes. There's no impact in terms of tax.

Vasilis Tsaitas: That was around EUR 17 million, which given the fact that those had gone through our OpEx in the previous years, it's a gain of EUR 17 million, which is net of taxes. There's no impact in terms of tax.

Speaker #3: There's no impact on terms of tax.

Speaker #4: Okay. On petrol stations, I think your comment is spot on, George. It's an ongoing process of reducing DOTOS, which are underperforming. And replacing them partly with COMOS or with better performing stations.

Georgios Alexopoulos: Okay. On petrol stations, I think your comment is spot on, George. It's an ongoing process of reducing outlets, which are underperforming, and replacing them partly with COCO or with better-performing stations. It is a trend that will continue. It's difficult to predict what is going to be the magnitude of the network reduction. As you might know, we've seen reductions of 3,000, 3,500 petrol stations increase over the last 10, 15 years. It's a one-way street.

Andreas Shiamishis: Okay. On petrol stations, I think your comment is spot on, George. It's an ongoing process of reducing outlets, which are underperforming, and replacing them partly with COCO or with better-performing stations. It is a trend that will continue. It's difficult to predict what is going to be the magnitude of the network reduction. As you might know, we've seen reductions of 3,000, 3,500 petrol stations increase over the last 10, 15 years. It's a one-way street. We'll see how that goes. There is a plan which will take the number of presentations even lower.

Speaker #4: So there is a trend that will predict what is going to be the magnitude of the reduction in the network reduction. As you might know, we've seen reductions of three, three and a half thousand petrol stations increase over the last 10 years, 10, 15 years.

Speaker #4: So it's a one-way street. We'll see how that goes. There is a plan. Which will take the number of petrol stations even lower.

[Company Representative] (HELLENiQ ENERGY): We'll see how that goes. There is a plan which will take the number of presentations even lower.

Speaker #3: Okay, thank you. Vasilis, sorry, just a follow-up on that capital gain of 17, 17 million. You mentioned. There's the reported and the adjusted numbers are shown in the presentation.

George Figario: Okay, thank you. Vasilis, sorry, just a follow-up on that net capital gain of EUR 17.7 million you mentioned. The reported and the adjusted numbers are shown in the presentation. There's a difference about EUR 13 million. Can you please explain that as well, if you can, while you're at it? Thank you. I'll finish off there. Thank you.

George Grigoriou: Okay, thank you. Vasilis, sorry, just a follow-up on that net capital gain of EUR 17.7 million you mentioned. The reported and the adjusted numbers are shown in the presentation. There's a difference about EUR 13 million. Can you please explain that as well, if you can, while you're at it? Thank you. I'll finish off there. Thank you.

Speaker #3: There's a difference about 13 million euros. Can you please explain that as well, if you can? While you're at it. Thank you. And I'll finish off there.

Speaker #3: Thank you.

Speaker #5: Sorry, Yorgo, which number you're referring?

[Company Representative] (HELLENiQ ENERGY): Sorry, Giorgos, which number you're referring?

Andreas Shiamishis: Sorry, Grigoriou, which number you're referring?

Speaker #3: Yes, on the presentation of the at the end on page 31 of the presentation, where it shows the breakdown of reported and adjusted EBITDA.

George Figario: Yes, on the presentation at the end on page 31 of the presentation, where it shows the breakdown of reported and adjusted EBITDA. The other, which includes mainly E&P, between adjusted and reported, there's a EUR 13 million difference. In the second page.

George Grigoriou: Yes, on the presentation at the end on page 31 of the presentation, where it shows the breakdown of reported and adjusted EBITDA. The other, which includes mainly E&P, between adjusted and reported, there's a EUR 13 million difference. In the second page.

Speaker #3: The other which includes mainly EMP, between adjusted and reported, there's a 13 million euro, 13 million euro difference. In the second quarter.

[Company Representative] (HELLENiQ ENERGY): Maybe, if you cannot see it now, maybe there's a point of picking that.

Andreas Shiamishis: Maybe, if you cannot see it now, maybe there's a point of picking that.

Speaker #4: Maybe if you cannot see now, maybe there's a point of picking that later. And calling George to sort it out.

George Figario: Yeah

George Grigoriou: Yeah.

[Company Representative] (HELLENiQ ENERGY): Calling George to sort it out.

Andreas Shiamishis: Calling George to sort it out.

Speaker #3: Okay. Yeah, thank you.

George Figario: Okay. Yeah. Thank you.

George Grigoriou: Okay. Yeah. Thank you.

Speaker #4: Thank you, George.

[Company Representative] (HELLENiQ ENERGY): Thank you, George.

Andreas Shiamishis: Thank you, George.

Speaker #2: The next question is from the line of Tatiana Buniotti with Eurobank Equities. Please go ahead.

Operator: The next question is from the line of Kristiana Bounioti with Eurobank Equities. Please go ahead.

Operator: The next question is from the line of Christiana Armpounioti with Eurobank Equities. Please go ahead.

Speaker #1: Hello. Congratulations for the result. One question from me. Could you clarify whether the 20 million contribution aimed at lowering fuel prices at the pump represents one of major only for August or whether you could consider extending similar support over the coming months if prices remain elevated?

Kristiana Bounioti: Hello. Congratulations for the results. One question from me. Could you clarify whether the EUR 20 million contribution aimed at lowering fuel prices at the pump represents a one-off measure only for August, or whether you could consider extending similar support over the coming months if prices remain elevated? In relation to that, do you have any insight into, following this action, whether the government could still be considering a windfall tax on excess refining profits, as we saw in Portugal? Thank you very much.

Christiana Armpounioti: Hello. Congratulations for the results. One question from me. Could you clarify whether the EUR 20 million contribution aimed at lowering fuel prices at the pump represents a one-off measure only for August, or whether you could consider extending similar support over the coming months if prices remain elevated? In relation to that, do you have any insight into, following this action, whether the government could still be considering a windfall tax on excess refining profits, as we saw in Portugal? Thank you very much.

Speaker #1: And in relation to that, do you have any insight into following this action whether the government could still be considering a windfall tax on excess refining profits as we saw in Portugal?

Speaker #1: Thank you very much.

Speaker #4: Well, thanks very relevant questions. Going the wrong way for the results, of course. But on the discounts, we have offered a 10 and 5 cents per liter effective discount at the pump price.

[Company Representative] (HELLENiQ ENERGY): Well, thanks. Very relevant questions. Going the wrong way for the results, of course. On the discounts, we have offered a EUR 0.10 and EUR 0.05 per liter effective discount at the pump price. For us, you have to take out the VAT cost. In reality, the value of that discount is going to be higher than EUR 30 million, simply because volumes are picking up. We are not seeing any real demand destruction as a result of high prices. It's going to be a little bit higher than that number. In the context of things, still a very manageable number. We have not made any decision whether we will continue for the following months. There are two issues here. The first one is the absolute level of pricing. That level is changing on a daily basis.

Andreas Shiamishis: Well, thanks. Very relevant questions. Going the wrong way for the results, of course. On the discounts, we have offered a EUR 0.10 and EUR 0.05 per liter effective discount at the pump price. For us, you have to take out the VAT cost. In reality, the value of that discount is going to be higher than EUR 30 million, simply because volumes are picking up. We are not seeing any real demand destruction as a result of high prices. It's going to be a little bit higher than that number. In the context of things, still a very manageable number. We have not made any decision whether we will continue for the following months. There are two issues here. The first one is the absolute level of pricing. That level is changing on a daily basis.

Speaker #4: So for us, you have to take out the VAT cost. In reality, the value of that discount is going to be higher than 30 million simply because volumes are picking up.

Speaker #4: We are not seeing any real demand destruction as a result of high prices. So it's going to be a little bit higher than that number.

Speaker #4: But in the context of things, still a very manageable number. We have not made any decision whether we will continue for the following months.

Speaker #4: There are two issues here. The first one is the absolute level of pricing. That level is changing on a daily basis. As you may have seen, product prices have dropped significantly.

[Company Representative] (HELLENiQ ENERGY): As you may have seen, product prices have dropped significantly, this will find its way into the pump price over the next few days, unless there is another change in the Gulf situation. It's very difficult to be able to see what's going to happen. Clearly, our performance has been very good and it's going to be even better in the Q3. To the extent that we can afford and in a responsible way, responsible meaning to all stakeholders, provide some price support to maintain the demand for private consumers, especially in the period which is very sensitive for Greece, I would not count out a continuation of this process, it's early days. Now, on the windfall tax, we've seen what Portugal has done. Portugal is a totally different case, much smaller system, much lower investment in refining.

Andreas Shiamishis: As you may have seen, product prices have dropped significantly, this will find its way into the pump price over the next few days, unless there is another change in the Gulf situation. It's very difficult to be able to see what's going to happen. Clearly, our performance has been very good and it's going to be even better in the Q3. To the extent that we can afford and in a responsible way, responsible meaning to all stakeholders, provide some price support to maintain the demand for private consumers, especially in the period which is very sensitive for Greece, I would not count out a continuation of this process, it's early days. Now, on the windfall tax, we've seen what Portugal has done. Portugal is a totally different case, much smaller system, much lower investment in refining.

Speaker #4: So this will find its way into the pump price over the next few days. Unless there is another change in the Gulf situation. So it's very difficult to be able to see what's going to happen.

Speaker #4: Clearly, our performance has been very good and it's going to be even better in the third quarter. So to the extent that we can afford and in a responsible way, responsible meaning to all stakeholders, provide some price support to maintain the demand for private consumers, especially in a period which is very sensitive for Greece, I would not count out a continuation of this process.

Speaker #4: But it's early days. Now, on the windfall tax, we've seen what Portugal has done. Portugal is a totally different case, much smaller system. Much lower investment in refining.

Speaker #4: They don't have enough products to serve their own market. So it's a bit of an easy case for them. Much smaller numbers as well.

[Company Representative] (HELLENiQ ENERGY): They don't have enough products to serve their own market. It's a bit of an easy case for them. Much smaller numbers as well. I think it's a roughly 200,000 barrels per day refinery compared to just under a million barrels per day refining capacity in Greece. It is something which is a totally different ball game. Very difficult to say what's going to happen. This is clearly something that the government will have to be taking as a question. I will leave it there. From our end, we're doing what we can to provide support to the Greek market, as part of the profitability that we are enjoying, mainly from international factors and exports. We are sort of doing in a prudent and responsible way, a rebalancing through our commercial policy.

Andreas Shiamishis: They don't have enough products to serve their own market. It's a bit of an easy case for them. Much smaller numbers as well. I think it's a roughly 200,000 barrels per day refinery compared to just under a million barrels per day refining capacity in Greece. It is something which is a totally different ball game. Very difficult to say what's going to happen. This is clearly something that the government will have to be taking as a question. I will leave it there. From our end, we're doing what we can to provide support to the Greek market, as part of the profitability that we are enjoying, mainly from international factors and exports. We are sort of doing in a prudent and responsible way, a rebalancing through our commercial policy.

Speaker #4: I think it's roughly 200,000 barrels per day refinery. Compared to just under a million barrels per day refining capacity in Greece. So it is something which is a totally different ballgame.

Speaker #4: Very difficult to say what's going to happen. This is clearly something that the government will have to be taking as a question. So I will leave it there.

Speaker #4: From our end, we're doing what we can to provide support to the Greek market. As part of the profitability that we are enjoying, mainly from international factors and exports.

Speaker #4: So we are sort of doing in a prudent and responsible way a rebalancing through our commercial policy. I don't have anything else to add on this front.

[Company Representative] (HELLENiQ ENERGY): I don't have anything else to add on this front, we'll have to wait what the government will decide, if they decide on anything.

Andreas Shiamishis: I don't have anything else to add on this front, we'll have to wait what the government will decide, if they decide on anything.

Speaker #4: So we'll have to wait what the government will decide if they decide on anything.

Speaker #1: Thank you very much.

Kristiana Bounioti: Thank you very much.

Christiana Armpounioti: Thank you very much.

Speaker #2: There are no further audio questions. I will now pass the floor to Mr. Katsanos to accommodate any written questions from the webcast participants. Mr. Katsanos, please proceed.

Operator: There are no further audio questions. I will now pass the floor to Mr. Katsanos to accommodate any written questions from the webcast participants. Mr. Katsanos, please proceed.

Operator: There are no further audio questions. I will now pass the floor to Mr. Katsenos to accommodate any written questions from the webcast participants. Mr. Katsenos, please proceed.

Speaker #5: Thank you, Operator. We do have some questions through the webcast. The first question comes from Optimum Bank. Konstantinos Komnos, who asks, could you update us on the Northern Union exploration program with ExxonMobil and Energian?

[Company Representative] (HELLENiQ ENERGY): Thank you, operator. We do have some questions through the webcast. The first question comes from Optima bank. Konstantinos Komnos, could you update us on the North Ionian Exploration program with ExxonMobil and Energean? Are you still targeting the first exploration well in Q2 2027, and what are the key milestones over the coming quarters?

Nikos Katsenos: Thank you, operator. We do have some questions through the webcast. The first question comes from Optima bank. Konstantinos Komnos, could you update us on the North Ionian Exploration program with ExxonMobil and Energean? Are you still targeting the first exploration well in Q2 2027, and what are the key milestones over the coming quarters?

Speaker #5: Are you still targeting the first exploration well in first Q27, and what are the key milestones over the coming quarters?

Speaker #4: Okay. George, you want to take this?

[Company Representative] (HELLENiQ ENERGY): Okay. George, you want to take this?

Andreas Shiamishis: Okay. George, you want to take this?

Speaker #3: Sure. Sure. Nothing has changed. We're still targeting Q1 of 27. There is currently the environmental permitting process which is required in those cases. The drill ship has been reserved.

Georgios Alexopoulos: Sure. Nothing has changed. We're still targeting Q1 2027. There is currently the environmental permitting process, which is required in those cases. The drill ship has been reserved. It was reserved earlier this year. The program is on track, and we expect to be drilling with our partners in Q1 2027.

George Alexopoulos: Sure. Nothing has changed. We're still targeting Q1 2027. There is currently the environmental permitting process, which is required in those cases. The drill ship has been reserved. It was reserved earlier this year. The program is on track, and we expect to be drilling with our partners in Q1 2027.

Speaker #3: It was reserved earlier this year. So the program is on track. And we expect to be drilling Q1 of 27.

Speaker #5: Thank you. And we do have another question from Madison Richards. Nicholas Payton, please could you discuss your outlook for refining margins in 2027 and beyond under three scenarios?

[Company Representative] (HELLENiQ ENERGY): Thank you. We do have another question from Edison Research, Nicholas Peyton. Please could you discuss your outlook for refining margins in 2027 and beyond under three scenarios. First, continued Middle East disruption, second, a return to 2023 conditions, and third, a return to 2019 conditions, pre-COVID and pre-Ukraine. The second part of the question is, how do you view HELLENiQ ENERGY's renewables business as the energy transition evolves towards a more balanced energy mix? Is your capital allocation strategy flexible if market views on wind and solar continue to change? The third part of the question, should investors increasingly view HELLENiQ ENERGY as a company with a greater focus on exploration? If exploration is successful, how could this change HELLENiQ ENERGY's long-term strategic positioning?

Kostas Karachalios: Thank you. We do have another question from Edison Research, Nicholas Peyton. Please could you discuss your outlook for refining margins in 2027 and beyond under three scenarios. First, continued Middle East disruption, second, a return to 2023 conditions, and third, a return to 2019 conditions, pre-COVID and pre-Ukraine. The second part of the question is, how do you view HELLENiQ ENERGY's renewables business as the energy transition evolves towards a more balanced energy mix? Is your capital allocation strategy flexible if market views on wind and solar continue to change? The third part of the question, should investors increasingly view HELLENiQ ENERGY as a company with a greater focus on exploration? If exploration is successful, how could this change HELLENiQ ENERGY's long-term strategic positioning?

Speaker #5: First, continued Middle East disruption. Second, a return to 2023 conditions. And third, a return to 2019 conditions. Pre-COVID and pre-Ukraine. The second part of the question is how do you view Hellenic's renewables business as the energy transition evolves towards a more balanced energy mix?

Speaker #5: Is your capital allocation strategy flexible if market views on wind and solar continue to change? And the third part of the question should investors increasingly view Hellenic as a company with a greater focus on exploration if exploration is successful.

Speaker #5: How could this change Hellenic's long-term strategic positioning?

Speaker #3: Okay. A question which covers pretty much most of our portfolio. I think we left engineering out. And but nevertheless, very, very, very relevant and thoughtful question.

[Company Representative] (HELLENiQ ENERGY): Okay. A question which covers pretty much most of our portfolio. I think we left engineering out and retail. Nevertheless, very relevant and thoughtful question. I cannot, in all honesty, tell you which of the three scenarios will prevail. It doesn't mean I can't, but what I will tell you is that my prediction is that the refining margins in 2027 will remain high. They will remain high not only because of the crisis, but because there are fundamental reasons why they cannot go back to where they were 10 years ago. Demand is increasing. Demand for energy is increasing. Demand for hydrocarbons is increasing. We are seeing regional imbalances. We are seeing disruptions to supply, either because of wars or geopolitical issues, or because of the need to upgrade refineries.

Andreas Shiamishis: Okay. A question which covers pretty much most of our portfolio. I think we left engineering out and retail. Nevertheless, very relevant and thoughtful question. I cannot, in all honesty, tell you which of the three scenarios will prevail. It doesn't mean I can't, but what I will tell you is that my prediction is that the refining margins in 2027 will remain high. They will remain high not only because of the crisis, but because there are fundamental reasons why they cannot go back to where they were 10 years ago. Demand is increasing. Demand for energy is increasing. Demand for hydrocarbons is increasing. We are seeing regional imbalances. We are seeing disruptions to supply, either because of wars or geopolitical issues, or because of the need to upgrade refineries.

Speaker #3: I cannot in all honesty tell you which of the three scenarios will prevail. What I will tell you, it doesn't mean I can't, but what I will tell you is that my prediction is that the refining margins in 27 will remain high.

Speaker #3: And they will remain high not only because of the crisis, but because there are cannot go back to where they were 10 years ago.

Speaker #3: Demand is increasing. Demand for energy is increasing. Demand for hydrocarbons is increasing. We are seeing regional imbalances. We are seeing disruptions to supply either because of wars or geopolitical issues or because of the need to upgrade refineries.

Speaker #3: And make no mistake, the refinery market assets in terms of capacity and conversion is not the same as it was five years ago. It's not the same as it was before the beginning of the war.

[Company Representative] (HELLENiQ ENERGY): Make no mistake, the refining market and assets in terms of capacity and conversion is not the same as it was five years ago. It's not the same as it was before the beginning of the war. You will be having an ongoing demand increase, you will be having less supply, and you will be having either crisis, meaning war, or you will have countries coming out of war, which means reconstruction. Overall, I am a little bit more positive on the expectation for the refining margins and the refining business overall. Renewables, I don't know, George, you want to take that as a general comment? I think you've covered it.

Andreas Shiamishis: Make no mistake, the refining market and assets in terms of capacity and conversion is not the same as it was five years ago. It's not the same as it was before the beginning of the war. You will be having an ongoing demand increase, you will be having less supply, and you will be having either crisis, meaning war, or you will have countries coming out of war, which means reconstruction. Overall, I am a little bit more positive on the expectation for the refining margins and the refining business overall. Renewables, I don't know, George, you want to take that as a general comment? I think you've covered it.

Speaker #3: So you will be having an ongoing demand increase. You will be having less supply. And you will be having either crisis, meaning war, or you will have countries coming out of war, which means reconstruction.

Speaker #3: Overall, I am a little bit more positive on the expectation for the refining margins and the refining business overall. Renewables I don't know. George, you want to take that as a general comment.

Speaker #3: I think you've covered it, but. Yeah, sure. Well, first of all, I think we have said from when we started with vision 2025 that our approach is actually a balanced approach.

Georgios Alexopoulos: Yeah, sure. Well, first of all, I think we have said from when we started with Vision 2025, that our approach is actually a balanced approach. While we support the energy transition and we are investing in renewables, we also see a continued relevance of hydrocarbons for many years to come. This hasn't changed, and in fact, I would say it is being confirmed. Now, regarding our focus, we do take into account developments. We are investing in a balanced renewables mix, which includes wind and solar, but also energy storage, which is essential for the increased penetration of renewables, either in the form of standalone storage or hybrid renewable projects or co-located storage. We see relevance in this approach. Frankly, we expect growth in our renewables business, but also in our downstream business as well.

George Alexopoulos: Yeah, sure. Well, first of all, I think we have said from when we started with Vision 2025, that our approach is actually a balanced approach. While we support the energy transition and we are investing in renewables, we also see a continued relevance of hydrocarbons for many years to come. This hasn't changed, and in fact, I would say it is being confirmed. Now, regarding our focus, we do take into account developments. We are investing in a balanced renewables mix, which includes wind and solar, but also energy storage, which is essential for the increased penetration of renewables, either in the form of standalone storage or hybrid renewable projects or co-located storage. We see relevance in this approach. Frankly, we expect growth in our renewables business, but also in our downstream business as well.

Speaker #3: And while we support the energy transition and we are investing in renewables, we also see a continued relevance of hydrocarbons for many years to come.

Speaker #3: So this hasn't changed. And in fact, I would say it is being confirmed. Now, regarding our focus, we do take into account developments. We are investing in a balanced renewables mix.

Speaker #3: Which includes wind and solar, but also energy storage, which is essential for the increased penetration of renewables. Either in the form of standalone storage or hybrid renewable projects or co-located storage.

Speaker #3: So we see relevance in this approach. And frankly, we expect growth in our renewables business, but also in our downstream business as well.

Speaker #4: So that's in a natural balanced approach which we have adopted since vision 2025. And it's something that we are very careful. We're growing into green energy, but we are doing that in a different way, in an advanced way.

[Company Representative] (HELLENiQ ENERGY): That's in a nutshell, a balanced approach, which we have adopted since Vision 2025, and it's something that we are very careful. We're growing into green energy, but we are doing that in a prudent way, in a balanced way.

Andreas Shiamishis: That's in a nutshell, a balanced approach, which we have adopted since Vision 2025, and it's something that we are very careful. We're growing into green energy, but we are doing that in a prudent way, in a balanced way.

Speaker #4: On exploration, I wouldn't expect a company to become an exploration super major okay. I start to be corrected in a few months. And I will not complain if I am.

Dinos Panas: On exploration, I wouldn't expect the company to become an exploration super major. Okay, I stand to be corrected in a few months, and I will not complain if I am, but I don't expect the structure of the company to change significantly.

Kostas Karachalios: On exploration, I wouldn't expect the company to become an exploration super major. Okay, I stand to be corrected in a few months, and I will not complain if I am, but I don't expect the structure of the company to change significantly.

Speaker #4: But I don't expect the structure of the company to change significantly.

Speaker #5: Thank you. And we do have another question from Beta Securities from Agape Mavrogianni. Congratulations on the results. Two questions from my side. Following your geographical expansion strategy in renewables business, would you consider further investment beyond Bulgaria and Romania?

[Company Representative] (HELLENiQ ENERGY): Thank you. We do have another question from Beta Securities from Agapi Mavrogianni. Congratulations on the results. Two questions from my side. Following your geographical expansion strategy in renewables business, would you consider further investment beyond Bulgaria and Romania? Second, H1 2026 cash flow generation has been strong. Do you intend to offer an increased dividend?

Nikos Katsenos: Thank you. We do have another question from Beta Securities from Agapi Mavrogianni. Congratulations on the results. Two questions from my side. Following your geographical expansion strategy in renewables business, would you consider further investment beyond Bulgaria and Romania? Second, H1 2026 cash flow generation has been strong. Do you intend to offer an increased dividend?

Speaker #5: And second, first, 1H26 cash flow generation has been strong. Do you intend to offer an increased dividend?

Speaker #3: So I will take the question on the geographical expansion. Look, we have a regional expansion strategy building on our renewables, but also our conventional assets and our energy management position are market positions.

Georgios Alexopoulos: I will take the question on the geographical expansion. Look, we have a regional expansion strategy building on our renewables, but also our conventional assets and our energy management position, our market position. We see our focus in markets like Bulgaria and Romania, which are interconnected to Greece, and they follow more or less the pricing of Greece. They also offer, at this point, better opportunities being a less mature market. Will we consider other countries, consistent with this strategy? I suppose we could, but it's more important at this point to build material positions in these markets as a priority.

George Alexopoulos: I will take the question on the geographical expansion. Look, we have a regional expansion strategy building on our renewables, but also our conventional assets and our energy management position, our market position. We see our focus in markets like Bulgaria and Romania, which are interconnected to Greece, and they follow more or less the pricing of Greece. They also offer, at this point, better opportunities being a less mature market. Will we consider other countries, consistent with this strategy? I suppose we could, but it's more important at this point to build material positions in these markets as a priority.

Speaker #3: So we see our focus in markets like Bulgaria and Romania, which is our interconnected to Greece and they follow more or less the pricing of Greece.

Speaker #3: But they also offer at this point better opportunities being less mature markets. Would we consider other countries consistent with this strategy? I suppose we could.

Speaker #3: But it's more important at this point to build material positions in these markets as a priority.

Speaker #4: Now, on dividends, Vasili, are you planning to share any good news with us?

Dinos Panas: Okay. Now on dividends. Vasilis, are you planning to share any good news with us?

Andreas Shiamishis: Okay. Now on dividends. Vasilis, are you planning to share any good news with us?

Speaker #2: Okay. Let me remind you our dividend policy is to distribute anywhere between 35 to 50 percent at the range of the adjusted net income.

[Company Representative] (HELLENiQ ENERGY): Okay. Let me remind you, our dividend policy is to distribute anywhere between 35% to 50%, that's the range of the adjusted net income. Considering certainly other things like cash flows, CapEx, taxes, all those things have to be considered when time comes. Certainly, we're looking towards an improved profitability versus last year, someone could expect that on absolute basis, the total payout should be higher. I think we will be able to become a little bit more specific with the Q3 results announcement, that we usually announce also our interim dividend.

Vasilis Tsaitas: Okay. Let me remind you, our dividend policy is to distribute anywhere between 35% to 50%, that's the range of the adjusted net income. Considering certainly other things like cash flows, CapEx, taxes, all those things have to be considered when time comes. Certainly, we're looking towards an improved profitability versus last year, someone could expect that on absolute basis, the total payout should be higher. I think we will be able to become a little bit more specific with the Q3 results announcement, that we usually announce also our interim dividend.

Speaker #2: Considering certainly other things like cash flows, capex, taxes, so all those things have to be considered when time comes. Certainly, we're looking towards an improved profitability versus last year.

Speaker #2: So someone could expect that on absolute basis, the total payout should be higher. I think we will be able to become a little bit more specific with the Q3 results announcement that we usually announce also our interim dividend.

Speaker #5: Thank you, Vasilis. We have from Morgan Stanley. Sylvia Richards. How do you see refining margins developing in the year end? Secondly, have you increased your market share in international exports?

[Company Representative] (HELLENiQ ENERGY): Thank you, Vasilis. We have another question through the webcast, from Morgan Stanley, Sylvia Richards. How do you see refining margins developing into year end? Secondly, have you increased your market share in international exports, taking market share from customers usually sourced from Russia? Third, have you been seeing any demand destruction in Greece or your other export markets?

Nikos Katsenos: Thank you, Vasilis. We have another question through the webcast, from Morgan Stanley, Sylvia Richards. How do you see refining margins developing into year end? Secondly, have you increased your market share in international exports, taking market share from customers usually sourced from Russia? Third, have you been seeing any demand destruction in Greece or your other export markets?

Speaker #5: Taking market share from customers usually serves from Russia? Third, have you been seeing any demand destruction in Greece or your other export

Speaker #4: Thank you. I'll take it from the top. As Andreas already mentioned, our outlook for refining margins is strong. In the months following the end of Q2, cracks and margins have reached quite high levels.

Dinos Panas: Thank you. I'll take it from the top. As Andreas already mentioned, our outlook for refining margins is strong. In the months following the end of Q2, cracks and margins have reached quite high levels, we expect that to persist given the bottleneck in refining capacity as was explained. Increased market share international exports. Market share international exports is a bit of a strange term, but our international exports have increased. There's elevated interest from the Black Sea, which was, as said previously, served by Russia. The Black Sea area would be an area where you're seeing substitution quite vividly. For the other markets, there's nothing particular. Demand destruction in Greece or other export markets. For Greece, we haven't seen any major demand destruction. In fact, demand for diesel is probably increased a bit. Demand for jet has increased significantly. It's a record aviation year.

Kostas Karachalios: Thank you. I'll take it from the top. As Andreas already mentioned, our outlook for refining margins is strong. In the months following the end of Q2, cracks and margins have reached quite high levels, we expect that to persist given the bottleneck in refining capacity as was explained. Increased market share international exports. Market share international exports is a bit of a strange term, but our international exports have increased. There's elevated interest from the Black Sea, which was, as said previously, served by Russia. The Black Sea area would be an area where you're seeing substitution quite vividly. For the other markets, there's nothing particular. Demand destruction in Greece or other export markets. For Greece, we haven't seen any major demand destruction. In fact, demand for diesel is probably increased a bit. Demand for jet has increased significantly. It's a record aviation year.

Speaker #4: And we expect that to persist given the bottleneck in refining capacity as was explained. Increased market share international exports. Market share international exports is a bit of a strange term, but our international exports are have increased.

Speaker #4: There's elevated market from the black so the elevated interest from the Black Sea, which was, as said, previously served by Russia. So the Black Sea area would be an area where you're seeing substitution quite vividly.

Speaker #4: But the other markets, there's nothing particular. Demand destruction in Greece or other export markets, for Greece, the we haven't seen any major demand destruction.

Speaker #4: In fact, demand for diesel is probably increased a bit. Demand for jet is increased significantly. It's a record deviation year. There are periodical small drops in general retail things like gasoline and LPG.

Dinos Panas: There are periodical small drops in general retail, things like gasoline and LPG, but small numbers. Thank you.

Kostas Karachalios: There are periodical small drops in general retail, things like gasoline and LPG, but small numbers. Thank you.

Speaker #4: But small numbers. Thank you.

Speaker #5: Thank you, Kostas. We have another question from second place advisors, Nick Lemon, who adds in the current security environment, would you purchase crude to below the inside the AG?

[Company Representative] (HELLENiQ ENERGY): Thank you, Kostas. We have another question from SecondPlace Advisors, Nicholas Lennon, who asks, in the current security environment, would you purchase crude to be loaded at Yanbu? What about crude loading inside the AG?

Nikos Katsenos: Thank you, Kostas. We have another question from SecondPlace Advisors, Nicholas Lennon, who asks, in the current security environment, would you purchase crude to be loaded at Yanbu? What about crude loading inside the AG?

Speaker #4: Last one's easier. Loading inside the Arabian Gulf has been suspended since the war broke out. As no international organization maritime organization could provide any solid safety clearance.

Dinos Panas: Last one's easier. Loading inside the Arabian Gulf has been suspended since the war broke out, as no international maritime organization could provide any solid safety clearance. For Yanbu, it would be on a more case-by-case basis. It is less risky. It's much easier for us to load at Sidi Kerir inside the Med for the same grade.

Kostas Karachalios: Last one's easier. Loading inside the Arabian Gulf has been suspended since the war broke out, as no international maritime organization could provide any solid safety clearance. For Yanbu, it would be on a more case-by-case basis. It is less risky. It's much easier for us to load at Sidi Kerir inside the Med for the same grade.

Speaker #4: For Yanbu, it would be on a more case-by-case basis. It is less risky. It's much easier for us to load at CDKD for the same inside the med for the same grade.

Speaker #5: Thank you. Operator, we don't have any other questions through the webcast back to you.

[Company Representative] (HELLENiQ ENERGY): Thank you. Operator, we don't have any other questions through the webcast. Back to you.

Nikos Katsenos: Thank you. Operator, we don't have any other questions through the webcast. Back to you.

Speaker #1: Thank you. Ladies and gentlemen, there are no further questions at this time. I'll now turn the conference over to management for any closing statements.

Operator: Thank you. Ladies and gentlemen, there are no further questions at this time. I'll now turn the conference over to management for any closing statements. Thank you.

Operator: Thank you. Ladies and gentlemen, there are no further questions at this time. I'll now turn the conference over to management for any closing statements. Thank you.

Speaker #1: Thank you.

Speaker #5: Once again, thank you for attending the call. Overall, a very good quarter on all fronts. Which is very reassuring for us. And I believe that the company is demonstrating in the best possible way that it has come a long way over the last few years.

[Company Representative] (HELLENiQ ENERGY): Once again, thank you for attending the call. Overall, a very good quarter on all fronts, which is very reassuring for us. I believe that the company is demonstrating in the best possible way that it has come a long way over the last few years. We have the improvement in every single aspect of our operations. We are deploying a very solid, well-thought-out, and well-implemented strategic plan without delaying, without spending money where we don't see value. Of course, being in a position to take advantage of very good backdrop in refining. The remaining of the year looks to be at least as good as the H1 of the year. I would dare say that 2027, if not 2028 as well, also look very positive.

Andreas Shiamishis: Once again, thank you for attending the call. Overall, a very good quarter on all fronts, which is very reassuring for us. I believe that the company is demonstrating in the best possible way that it has come a long way over the last few years. We have the improvement in every single aspect of our operations. We are deploying a very solid, well-thought-out, and well-implemented strategic plan without delaying, without spending money where we don't see value. Of course, being in a position to take advantage of very good backdrop in refining. The remaining of the year looks to be at least as good as the H1 of the year. I would dare say that 2027, if not 2028 as well, also look very positive.

Speaker #5: We have the improvement in every single aspect of our operations. We are deploying a very solid well-thought-out and well-implemented strategic plan without delaying without spending money where we don't see value.

Speaker #5: And of course, being in a position to take advantage of very good backdrop in refining. The remaining of the year looks to be at least as good as the first half of the year.

Speaker #5: And I would dare say that 2027, if not 2028 as well, also look very positive. With that, we expect that we'll be able to take the company into even better performance levels in the coming years.

[Company Representative] (HELLENiQ ENERGY): With that, we expect that we'll be able to take the company into even better performance levels in the coming years. Take the advantage of this run of good results and good background, good environment, to accelerate the transformation of the company, invest both within our own core business in Greece, but also expand internationally and accelerate the transition into cleaner forms of energy. Thank you very much, and I wish everybody to have a relaxed August, with no more fires, hopefully, in Greece. We'll be back with you in the next few weeks. Thank you.

Andreas Shiamishis: With that, we expect that we'll be able to take the company into even better performance levels in the coming years. Take the advantage of this run of good results and good background, good environment, to accelerate the transformation of the company, invest both within our own core business in Greece, but also expand internationally and accelerate the transition into cleaner forms of energy. Thank you very much, and I wish everybody to have a relaxed August, with no more fires, hopefully, in Greece. We'll be back with you in the next few weeks. Thank you.

Speaker #5: And take the advantage of this run of good results and good background, good environment to accelerate the transformation of the company. Invest both within our own core business in Greece but also expand internationally.

Speaker #5: And accelerate the transition into cleaner forms of energy. So thank you very much. And I wish everybody to have a relaxed August. With no more fires, hopefully in Greece.

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