Half Year 2026 Cenergy Holdings SA Earnings Call

Speaker #1: It's hot August afternoon. To our 2026 first-semester financial results conference call, let's see first our major highlight points of the semester that has just ended.

Speaker #1: So, first of all, we have in a record backlog figure following IPTO's frame agreements on the North Aegean and the Deccanese interconnections. The project execution was very good in the semester, delivering high margins, in most projects.

Speaker #1: We continue to build up capacity since our backlog is expected to grow even further. The returns to our shareholders remained attractive, and our leverage profile is also solid even after expanding significant amounts for capex in the first semester.

Speaker #1: The numbers that are highlighted in our press release and in our financial results are as follows. First of all, we have an increase in revenue of 13% year on year, above the threshold of 1 billion, at a level of 1.15 billion euros.

Speaker #1: This higher revenue actually doubles in terms of profitability, in terms of profitability delta, and we have an increase of the operational profitability of 26% compared to the semester, the first semester of 2025, reaching a number of 216 million euros.

Speaker #1: Again, that once more it shows that our focus is on value and not on volume. Margins remain high, around 19%, almost 200 basis points higher than the corresponding semester of last year, slightly lower than the 19.7% that we had in Q1, as we had already forecasted the introduction of land cables, extra capacity in FIVA and Eleonas, has driven slightly down those margins.

Speaker #1: Since in Q1 we had a disproportionately high percentage of offshore cable in our revenues, our backlog reaches 3.9 billion. This is mostly due to the IPTO interconnection of the four interconnections in Greece which is valued at 1.15 billion.

Speaker #1: I will come back to it in a while. Capex for the first semester was 165 million, and important number, with 67 million out of which were in facilities outside Greece, we reiterate in that way our commitment to a global positioning, both for our cable segment, that is expected to start its US operations in the second semester of 2027, which means 12 and a 12 months from now, or a little bit more than 12 months, 12 to 13 months from now, as well as the new pipes facility in the UK.

Speaker #1: The bottom line is at 177 million, 43% higher than last year and an EPS of 65 cents, 45% higher than last year, and given this very strong results of H1 and the growing backlog, the company has decided to upgrade its full year 2026 guidance for operational profitability to 390 for 20 million range.

Speaker #1: Of adjusted EBITDA. Let's look into a little bit more detail the figures for 2026. Starting from revenue. As I said, the revenue exceeded 1.1 billion, the strongest change is found in the cable products 352 million for the first 6 months, a 20% increase from the corresponding semester of 25, but the larger share of revenue is, of course, in cable projects, more than 40% of total revenue, and this is the most profitable segment as you all know.

Speaker #1: There is a strong increase in steel pipes projects, of 13%, in money terms, and the only constant part of our business line is hollow sections, but as I told you quite often in the past, this is not a focus point for our group, it's more of a continuing business from the 20th century years of Corinth Pipe Works, and it's really a very small part of the Corinth Pipe Works business right now.

Speaker #1: The sales are dispersed; of course, the larger part is still found in Europe, where a Europe-centric company more than 60% of our sales are in Europe for the last 2 years.

Speaker #1: The rest of the world has shown quite a considerable increase. It now takes 14% of our sales, from 7% in the corresponding semester of 25.

Speaker #1: The US is constant at around 7%, and the increase of 13% of revenue, as I said before, has led to a 26% increase in operational profitability at 216 million.

Speaker #1: That operational profitability is further boosted by 7 million euros of positive metal result for a total EBITDA of 223 million. Of course, that metal result, as you all know, is only an accounting profit number, and it's not considered to be a recurring amount.

Speaker #1: Now, how do we go from last year's first semester to this year's one? It's really the cables providing most of that change in the profit before tax, 52.3 out of the 53.5 million change.

Speaker #1: The SG&As are higher as sales have increased, but also as labor costs have gone up, and this is partly due to our good performance in 25, which led the company to really contribute and give some bonus payments and incentive payments to our staff, because as we always say, the most important part behind our factories and our products is our people, and with the company wanted to congratulate the staff, all the labor, both workers and white-collar workers, in the group, congratulate by some extra payments for the good performance of 25.

Speaker #1: Now, the operational profitability, of course, trickles down to PBT at 177 million, and that, of course, also trickles down to a profit after tax of 138 million, 45% higher than the corresponding semester last year.

Speaker #1: Most importantly, however, it is the view that we have on our backlog. The first reading of the numbers showed just a 500 million increase from December 2025.

Speaker #1: We all knew, you all know, the projects that we have announced in the first quarter, the project in the Netherlands and the project in Poland.

Speaker #1: But a much more important landmark for us is was the frame agreement that was signed between Hellenic Cables and IPTO, ADMIE in Greek, of 1.15 billion, which relates to the connection of four important connections in the northern and eastern part of the Aegean.

[Company Representative] (Cenergy Holdings): Really a very small part of the Corinth Pipeworks business right now. The sales are dispersed. Of course, the larger part is still found in Europe. We are a Europe-centric company. More than 60% of our sales are in Europe for the last two years. The rest of the world has shown quite a considerable increase. It now takes 14% of our sales from 7% in the corresponding semester of 2025. The US is constant at around 7%, and the increase of 13% of revenue, as I said before, has led to a 26% increase in operational profitability at EUR 216 million. That operational profitability is further boosted by EUR 7 million of a positive metal result for a total EBITDA of EUR 223 million. Of course, that metal result, as you all know, is only an accounting profit number, and it is not considered to be a recurring amount.

Alexandros Benos: Really a very small part of the Corinth Pipeworks business right now. The sales are dispersed. Of course, the larger part is still found in Europe. We are a Europe-centric company. More than 60% of our sales are in Europe for the last two years. The rest of the world has shown quite a considerable increase. It now takes 14% of our sales from 7% in the corresponding semester of 2025. The US is constant at around 7%, and the increase of 13% of revenue, as I said before, has led to a 26% increase in operational profitability at EUR 216 million. That operational profitability is further boosted by EUR 7 million of a positive metal result for a total EBITDA of EUR 223 million. Of course, that metal result, as you all know, is only an accounting profit number, and it is not considered to be a recurring amount.

Speaker #1: Really a very small part of the orange pipe works business right now. The sales are dispersed, of course. The larger part is still found in Europe, where Europe-centric companies—more than 60% of our sales are in Europe for the last 2 years—the rest of the world has shown quite a considerable increase.

Speaker #1: First, the connection between Thraki and Limnos, then between Lesvos and Limnos, Lesvos and Hios is the third one, and between Kos and Rhodes, the fourth one.

Speaker #1: These are really strategic projects for the country. The project includes almost 700 kilometers of submarine cables and another 230 kilometers of land cables, it's an EPCI project, as we call it, a turnkey project, and we are very confident that there is more to come in project awards until the end of the year.

Speaker #1: It now takes 14% of our sales, from 7% '25. The U.S. is constant at around 7%, and the increase of 13% of revenue, as I said before, has led to a 26% increase in operational profitability at $216 million.

Speaker #1: Now, how is this backlog distributed? In cables, the backlog is really European and Greek, and it's a large part, the largest part of it, is is interconnections.

Speaker #1: That operational profitability is further boosted by $7 million of positive metal result, for a total EBITDA of $223 million. Of course, that metal result, as you all know, is only an accounting profit number, and it's not considered to be a recurring amount.

Speaker #1: A smaller part is offshore wind farms, and that is important because the interconnections give us much more stability and visibility for the future. We have clients in interconnections which are semi-public entities, that do invest a lot in important projects for their countries.

Speaker #1: Now, how do we go from last year's first semester to this year's one? It's really the cables providing most of that change in the profit before tax.

[Company Representative] (Cenergy Holdings): Now, how do we go from last year's first semester to this year's one? It's really the cables providing most of that change in the profit before tax, EUR 52.3 million out of the EUR 53.5 million change. The SG&A are higher as sales have increased, but also as labor costs have gone up, and this is partly due to our good performance in 2025, which led the company to really contribute and give some bonus payments and incentive payments to our staff. Because, as we always say, the most important part behind our factories and our products is our people. The company wanted to congratulate the staff, all the labor, both workers and white-collar workers in the group, congratulate by some extra payments for the good performance of 2025.

Alexandros Benos: Now, how do we go from last year's first semester to this year's one? It's really the cables providing most of that change in the profit before tax, EUR 52.3 million out of the EUR 53.5 million change. The SG&A are higher as sales have increased, but also as labor costs have gone up, and this is partly due to our good performance in 2025, which led the company to really contribute and give some bonus payments and incentive payments to our staff. Because, as we always say, the most important part behind our factories and our products is our people. The company wanted to congratulate the staff, all the labor, both workers and white-collar workers in the group, congratulate by some extra payments for the good performance of 2025.

Speaker #1: They are much higher, they have much higher credit worthiness than offshore wind farm developers, and that gives us a much better degree of confidence for the visibility of our backlog.

Speaker #1: 52.3 out of the 53.5 million change. The SG&A costs are higher, as sales have increased, but also as labor costs have gone up. This is partly due to our good performance in '25, which led the company to really contribute and give some bonus payments and incentive payments to our staff.

Speaker #1: For the steel pipes, the steel pipes backlog remains around 500 million. 500 million is almost a year and a half of revenue, and it is this year concentrated in the Americas, and the rest in Europe, and it is diversified, I would say, evenly distributed between oil, natural gas, hydrogen, and a small part in CCS, around 10%.

Speaker #1: Because as we always say, the most important part behind our factories and our products is our people. And with the company wanted to congratulate the staff, all the labor, both workers and white-collar workers, in the group, congratulate by some extra payments for the good performance of '25.

Speaker #1: Given the backlog that we do have and the growth that we do want to achieve in the medium term in the future, we have spent an important amount of money, I would say 165 million in the first 6 months, to support that next growth phase of the group.

Speaker #1: Now, the operational profitability, of course, trickles down to PBT at $177 million, and that, of course, also trickles down to a profit after tax of $138 million—45% higher than the corresponding semester last year.

[Company Representative] (Cenergy Holdings): Now, the operational profitability, of course, trickles down to PBT at EUR 177 million, and that of course, also trickles down to a profit after tax of EUR 138 million, 45% higher than the corresponding semester last year. Most importantly, however, it is the view that we have on our backlog. The first reading of the numbers show just a EUR 500 million increase from December 2025. You all know the projects that we have announced in the first quarter, the project in the Netherlands and the project in Poland. A much more important landmark for us was the frame agreement that was signed between Hellenic Cables and IPTO, ΑΔΜΗΕ in Greek, of EUR 1.15 billion, which relates to the connection of four important connections in the northern and eastern part of the Aegean.

Alexandros Benos: Now, the operational profitability, of course, trickles down to PBT at EUR 177 million, and that of course, also trickles down to a profit after tax of EUR 138 million, 45% higher than the corresponding semester last year. Most importantly, however, it is the view that we have on our backlog. The first reading of the numbers show just a EUR 500 million increase from December 2025. You all know the projects that we have announced in the first quarter, the project in the Netherlands and the project in Poland. A much more important landmark for us was the frame agreement that was signed between Hellenic Cables and IPTO, ΑΔΜΗΕ in Greek, of EUR 1.15 billion, which relates to the connection of four important connections in the northern and eastern part of the Aegean.

Speaker #1: These are all strategic investments, split between cables and steel pipes, with cables having the lion's share, 50 million is was spent for the new Maryland plant in the US, and another almost 90 million spent for coins and FIVA, the two factories in Greece.

Speaker #1: Most importantly, however, it is the view that we have on our backlog. The first reading of the numbers showed just a $500 million increase from December 2025.

Speaker #1: These two last parts were concerned, actually, the optimization of the new capacity that we have installed since 2024, whereas in the US the story I've described it quite often in the past, it is getting a local base for that important large and growing market for cables in the US.

Speaker #1: We all knew—you all know—the projects that we have announced in the first quarter: the project in the Netherlands and the project in Poland. But a much more important landmark for us was the frame agreement that was signed between Hellenic Cables and IPTO (ADMIE in Greek), of $1.15 billion, which relates to the connection of four important connections in the northern and eastern part of the Aegean.

Speaker #1: Then there is another amount of almost 30 million, which was spent by the steel pipe segments, the largest part being the acquisition and the start of recommissioning for the Hartipool LSR pipe facility in the UK.

[Company Representative] (Cenergy Holdings): First, the connection between Thrace and Lemnos, then between Lesvos and Lemnos, Lesvos and Chios is the third one, and between Kos and Rhodes, the fourth one. These are really strategic projects for the country. The project includes almost 700 km of submarine cables and another 230 km of land cables. It's an EPCI project, as we call it, a turnkey project, and we are very confident that there is more to come in project awards until the end of the year. Now, how is this backlog distributed? In cables, the backlog is really European and Greek, and the largest part of it is interconnections. A smaller part is offshore wind farms, and that is important because the interconnections give us much more stability and visibility for the future. We have clients in interconnections, which are semi-public entities that do invest a lot in important projects for their countries.

Alexandros Benos: First, the connection between Thrace and Lemnos, then between Lesvos and Lemnos, Lesvos and Chios is the third one, and between Kos and Rhodes, the fourth one. These are really strategic projects for the country. The project includes almost 700 km of submarine cables and another 230 km of land cables. It's an EPCI project, as we call it, a turnkey project, and we are very confident that there is more to come in project awards until the end of the year. Now, how is this backlog distributed? In cables, the backlog is really European and Greek, and the largest part of it is interconnections. A smaller part is offshore wind farms, and that is important because the interconnections give us much more stability and visibility for the future. We have clients in interconnections, which are semi-public entities that do invest a lot in important projects for their countries.

Speaker #1: First, the connection between Thraki and Limnos, then between Lesvos and Limnos, Lesvos and Chios is the third one, and between Kos and Rhodes, the fourth one.

Speaker #1: Now, that is also an important project for us. It gives us additional capacity in LSR pipes, and as I will make a little bit clearer in a while, the LSR pipes are the most valuable projects for the group and for, you know, globally, not just for us, and it also it's also a door to a very interesting market, which is the UK for us.

Speaker #1: These are really strategic projects for the country. The project includes almost 700 kilometers of submarine cables, and another 230 kilometers of land cables. It's an EPCI project, as we call it—a turnkey project.

Speaker #1: And we are very confident that there is more to come in project awards until the end of the year. Now, how is this backlog distributed?

Speaker #1: So the capex is spent, but it is spent to support the next growth phase of CENERGY. Despite that capex, the leverage remains very manageable at 1.1 times EBITDA for the 6 months, clearly there is an increase of almost 180 million from working capital which translates to a 230 million difference in net debt, of which we expect this figures to normalize by the end of the year, and the leverage to hover around 1, the level of 1 times EBITDA by the end of the year.

Speaker #1: In cables, the backlog is really European and Greek. And it's a large part, the largest part of it, is interconnections. A smaller part is offshore wind farms, and that is important because the interconnections give us much more stability and visibility for the future.

Speaker #1: We have clients in interconnections, which are semi-public entities that do invest a lot in important projects for their countries. They have much higher credit worthiness than offshore wind farm developers.

Speaker #1: And we believe that we have really offered some good returns to our shareholders; the returns remain attractive. We have a 45% increase in earnings per share since the corresponding semester of '25, and more than 15% upside in the share price since December 2025, despite some hiccups that we've seen in the share price in June and July.

[Company Representative] (Cenergy Holdings): They have much higher credit worthiness than offshore wind farm developers, and that gives us a much better degree of confidence for the visibility of our backlog. For the steel pipes, the steel pipes backlog remains around EUR 500 million. EUR 500 million is almost a year and a half of revenue, and it is this year concentrated in the Americas and the rest in Europe, and it is diversified, I would say, evenly distributed between oil, natural gas, hydrogen, and a small part in CCS, around 10%. Given the backlog that we do have and the growth that we do want to achieve in the medium term in the future, we have spent an important amount of money, I would say EUR 165 million in the first six months, to support that next growth phase of the group.

Alexandros Benos: They have much higher credit worthiness than offshore wind farm developers, and that gives us a much better degree of confidence for the visibility of our backlog. For the steel pipes, the steel pipes backlog remains around EUR 500 million. EUR 500 million is almost a year and a half of revenue, and it is this year concentrated in the Americas and the rest in Europe, and it is diversified, I would say, evenly distributed between oil, natural gas, hydrogen, and a small part in CCS, around 10%. Given the backlog that we do have and the growth that we do want to achieve in the medium term in the future, we have spent an important amount of money, I would say EUR 165 million in the first six months, to support that next growth phase of the group.

Speaker #1: And that gives us a much better degree of confidence for the visibility of our backlog. For the steel pipes, the steel pipes backlog remains around $500 million.

Speaker #1: $500 million is almost a year and a half of revenue. And it is this year concentrated in the Americas and the rest in Europe, and it is diversified, I would say, evenly distributed between oil, natural gas, hydrogen, and a small part in CCS, around 10%.

Speaker #1: The return of capital employed remains very strong, at 28%, as it was also in 2025. Turning at the segments. Clearly, as I said until now, the important contributor of CENERGY profitability and growth up to now is the cable segment.

Speaker #1: Given the backlog that we do have, and the growth that we do want to achieve in the medium term in the future, we have spent an important amount of money, I would say $165 million in the first 6 months, to support that next growth phase of the group.

Speaker #1: We have a turnover of 842 million of sales, most of it in projects, so more than 50% in projects, and the rest in products.

Speaker #1: That turnover is converted, actually, to 164 million of operational profitability, with margins reaching 19.5%. This average margin includes both the margins from projects which, as I stated quite often in the past, are above the 20% mark, and the margins from products which are lower, so we have an average of 19.5%.

Speaker #1: These are all strategic investments, split between cables and steel pipes, with cables having the lion's share. $50 million was spent for the new Maryland plant in the U.S., and another almost $90 million spent for Corinth and Thiva, the two factories in Greece.

[Company Representative] (Cenergy Holdings): These are all strategic investments split between cables and steel pipes, with cables having the lion's share. $50 million was spent for the new Maryland plant in the US, and another almost EUR 90 million spent for Corinth and Thiva, the two factories in Greece. These two last parts were concerned, actually, the optimization of the new capacity that we have installed since 2024. Whereas in the US, the story I've described it quite often in the past, it is getting a local base for that important, large, and growing market for cables in the US. There is another amount of almost EUR 30 million, which was spent by the steel pipe segment, the largest part being the acquisition and the start of recommissioning for the Hartlepool LSAW pipe facility in the UK. That is also an important project for us.

Alexandros Benos: These are all strategic investments split between cables and steel pipes, with cables having the lion's share. $50 million was spent for the new Maryland plant in the US, and another almost EUR 90 million spent for Corinth and Thiva, the two factories in Greece. These two last parts were concerned, actually, the optimization of the new capacity that we have installed since 2024. Whereas in the US, the story I've described it quite often in the past, it is getting a local base for that important, large, and growing market for cables in the US. There is another amount of almost EUR 30 million, which was spent by the steel pipe segment, the largest part being the acquisition and the start of recommissioning for the Hartlepool LSAW pipe facility in the UK. That is also an important project for us.

Speaker #1: The increase of 36% in EBITDA is, as is clear, due to the disciplined and successful execution of important projects for the segment, as well as trying to give the best and the most profitable solution, the most efficient solution for cables to our clients.

Speaker #1: These two last parts were concerned, actually, the optimization of the new capacity that we have installed since 2024, whereas in the U.S. the story I've described it quite often in the past, it is getting a local base for that important large and growing market for cables in the U.S.

Speaker #1: Working capital has increased, of course, by almost 170 million since December. That also boosted net debt by 155 million, but still the profitability of the segment is strong enough to keep the leverage profile a very sound at very sound levels.

Speaker #1: Then there is another amount of almost $30 million, which was spent by the steel pipe segments. The largest part being the acquisition and the start of recommissioning for the Hartlepool LSR pipe facility in the U.K.

Speaker #1: For steel pipes, the story is a little bit different. There is an increase in turnover, at 312 million. That increase in turnover by 11% is actually volume-driven, so it is not a result of higher prices.

Speaker #1: Now, that is also an important project for us. It gives us additional capacity in LSR pipes, and as I will make a little bit clearer in a while, the LSR pipes are the most valuable projects for the group and for, you know, globally, not just for us.

[Company Representative] (Cenergy Holdings): It gives us additional capacity in LSAW pipes, as I will make a little bit clear in a while, the LSAW pipes are the most valuable projects for the group and globally, not just for us. It is also a door to a very interesting market, which is the UK for us. The CapEx is spent, but it is spent to support the next growth phase of Cenergy. Despite that CapEx, the leverage remains very manageable at 1.1 times EBITDA for the six months. Clearly, there is an increase of almost EUR 180 million from working capital, which translates to a EUR 230 million difference in net debt. We expect these figures to normalize by the end of the year and the leverage to hover around 1, the level of 1 times EBITDA, by the end of the year.

Alexandros Benos: It gives us additional capacity in LSAW pipes, as I will make a little bit clear in a while, the LSAW pipes are the most valuable projects for the group and globally, not just for us. It is also a door to a very interesting market, which is the UK for us. The CapEx is spent, but it is spent to support the next growth phase of Cenergy. Despite that CapEx, the leverage remains very manageable at 1.1 times EBITDA for the six months. Clearly, there is an increase of almost EUR 180 million from working capital, which translates to a EUR 230 million difference in net debt. We expect these figures to normalize by the end of the year and the leverage to hover around 1, the level of 1 times EBITDA, by the end of the year.

Speaker #1: I would say that prices are slightly lower, from the last semester of 2025. The profitability stays around 51 to 52 million as was last year, but the margins are lower.

Speaker #1: And it also—it's also a door to a very interesting market, which is the U.K. for us. So the capex is spent, next growth phase of CENERGY.

Speaker #1: Don't forget that 2025 was really the anus mirabilis of coins pipe works, with extraordinary operational profits of 108 million. This year, we are keeping close, I think, to those levels, but we are not supposed to actually reach those 108 million, but it's still a very strong year for CPW, despite the fact that the market does not really enjoy the positive tailwinds that you have in the cables segment.

Speaker #1: Despite that capex, the leverage remains very manageable at $1.1 times EBITDA for the 6 months, clearly there is an increase of almost $180 million from working to a $230 million difference in net debt, of which we expect this figures to normalize by the end of the year.

Speaker #1: And the leverage to hover around $1, the level of $1 times EBITDA by the end of the year. And we believe that we have really offered some good returns to our shareholders: the returns remain attractive.

[Company Representative] (Cenergy Holdings): We believe that we have really offered some good returns to our shareholders. The returns remain attractive. We have a 45% increase in earnings per share since the corresponding H2 2025, and more than 15% upside in the share price since December 2025, despite some hiccups that we've seen in the share price in June and July. The return of capital employed remains very strong at 28%, as it was also in 2025. Turning at the segments. Clearly, as I said until now, the important contributor of Cenergy profitability and growth up to now is the cable segment. We have a turnover of EUR 842 million of sales, most of it in projects, so more than 50% in projects and the rest in products. That turnover is converted actually to EUR 164 million of operational profitability, with margins reaching 19.5%.

Alexandros Benos: We believe that we have really offered some good returns to our shareholders. The returns remain attractive. We have a 45% increase in earnings per share since the corresponding H2 2025, and more than 15% upside in the share price since December 2025, despite some hiccups that we've seen in the share price in June and July. The return of capital employed remains very strong at 28%, as it was also in 2025. Turning at the segments. Clearly, as I said until now, the important contributor of Cenergy profitability and growth up to now is the cable segment. We have a turnover of EUR 842 million of sales, most of it in projects, so more than 50% in projects and the rest in products. That turnover is converted actually to EUR 164 million of operational profitability, with margins reaching 19.5%.

Speaker #1: Let's turn now to, I think, the most important part of this outlook for the rest of the year and for 2027. I would say that starting from cables, that the most interesting growth themes for cables are as follows.

Speaker #1: We have a 45% increase in earnings per share since the corresponding semester of '25, and more than 15% upside in the share price since December 2025, despite some hiccups that we've seen in the share price in June and July.

Speaker #1: First of all, the transmission projects. HVDC, subsea transmissions, these are the most attractive profit pool for cables, not only for Hellenic cables, but also for the other cable operators.

Speaker #1: The return of capital employed remains very strong at $28%, as it was also in 2025. Turning at the segments. Clearly, as I said until now, the important contributor of CENERGY profitability and growth up to now is the cable segment.

Speaker #1: The growth is driven mainly by the European interconnectors, the export cables of offshore wind farms, some island interconnections like in our case, and grid security.

Speaker #1: And margins remain structurally superior to other cable businesses. We're talking about margins which are close or higher than 20% for all of the competitors and ourselves, and the importance of that growth point is that it will remain, it is driven not by a fading choice in energy sourcing, but from a much more stable choice of energy stability and energy resilience.

Speaker #1: We have a turnover of $842 million of sales, most of it in projects, so more than 50% in projects. And the rest in products.

Speaker #1: That turnover is converted, actually, to $164 million of operational profitability, with margins reaching 19.5%. This average margin includes both the margins from projects, which, as I stated quite often in the past, are above the $20% mark, and the margins from products, which are lower.

[Company Representative] (Cenergy Holdings): This average margin includes both the margins from projects which, as I stated quite often in the past, are above the 20% mark, and the margins from products which are lower, so we have an average of 19.5%. The increase of 36% in EBITDA is, as is clear, due to the disciplined and successful execution of important projects for the segment, as well as trying to give the best and the most profitable solution, the most efficient solution for cables to our clients. Working capital has increased, of course, by almost EUR 170 million since December. That also boosted net debt by EUR 155 million. Still, the profitability of the segment is strong enough to keep the leverage profile at very sound levels. For steel pipes, the story is a little bit different. There is an increase in turnover at EUR 312 million.

Alexandros Benos: This average margin includes both the margins from projects which, as I stated quite often in the past, are above the 20% mark, and the margins from products which are lower, so we have an average of 19.5%. The increase of 36% in EBITDA is, as is clear, due to the disciplined and successful execution of important projects for the segment, as well as trying to give the best and the most profitable solution, the most efficient solution for cables to our clients. Working capital has increased, of course, by almost EUR 170 million since December. That also boosted net debt by EUR 155 million. Still, the profitability of the segment is strong enough to keep the leverage profile at very sound levels. For steel pipes, the story is a little bit different. There is an increase in turnover at EUR 312 million.

Speaker #1: The second growth theme, which evolves, the second major growth engine for cables, is AI and data centers. And they emerge as that growth engine, not only as an electricity story, but also as demand for fiber optic cables, for connections of the data centers to the grid, of upgrades to the transmission mechanisms, and that is an important step because it gives at least for us an very good argument for our North American foothold, because the data center story is much hotter in the North American continent, and that's where a large part of the demand is expected to come.

Speaker #1: So, we have an average of 19.5%. The increase of 36% in EBITDA is, as is clear, due to the disciplined and successful execution of important projects for the segment, as well as trying to give the best and most profitable solution, the most efficient solution for cables, to our clients.

Speaker #1: Working capital has increased, of course, by almost $170 million since December. That also boosted net debt by $155 million. But still, the profitability of the segment is strong enough to keep the leverage profile a very sound at very sound levels.

Speaker #1: For steel pipes, the story is a little bit different. There is an increase in turnover, at $312 million. That increase in turnover by 11% is actually volume-driven, so it is not a result of higher prices.

Speaker #1: Third point is the modernization of the grid. The international energy association actually has identified that grid congestion and delays in connections are one of the biggest bottlenecks to the energy transition.

[Company Representative] (Cenergy Holdings): That increase in turnover by 11% is actually volume driven, so it is not a result of higher prices. I would say that prices are slightly lower from the last semester of 2025. The profitability stays around EUR 51 to 52 million, as was last year, but the margins are lower. Don't forget that 2025 was really the annus mirabilis of Corinth Pipeworks, with extraordinary operational profits of EUR 108 million. This year, we are keeping close, I think, to those levels, but we are not supposed to actually reach those EUR 108 million, but it is still a very strong year for CPW, despite the fact that the market does not really enjoy the positive tailwinds that you have in the cables segment. Let's turn now to, I think, the most important part of this presentation, which is the outlook for the rest of the year and for 2027.

Alexandros Benos: That increase in turnover by 11% is actually volume driven, so it is not a result of higher prices. I would say that prices are slightly lower from the last semester of 2025. The profitability stays around EUR 51 to 52 million, as was last year, but the margins are lower. Don't forget that 2025 was really the annus mirabilis of Corinth Pipeworks, with extraordinary operational profits of EUR 108 million. This year, we are keeping close, I think, to those levels, but we are not supposed to actually reach those EUR 108 million, but it is still a very strong year for CPW, despite the fact that the market does not really enjoy the positive tailwinds that you have in the cables segment. Let's turn now to, I think, the most important part of this presentation, which is the outlook for the rest of the year and for 2027.

Speaker #1: I would say that prices are slightly lower, from the last semester of 2025. The profitability stays around $51 to $52 million as was last year, but the margins are lower.

Speaker #1: And that's why utilities in Europe and in North America they accelerate investments in transmission networks, underground cables, especially for areas which are struck by tornadoes or by large physical phenomena.

Speaker #1: Don't forget that 2025 was really the annus mirabilis of Corinth Pipe Works, with extraordinary operational profits of $108 million. This year, we are keeping close, I think, to those levels, but we are not supposed to actually reach those $108 million.

Speaker #1: Distribution upgrades we all know the stories about lack of charging stations in urban areas in Europe, but also in the US, and the resilience of the grid.

Speaker #1: So all of these growth themes are important, for the cables, the geographic winners I would say are in Europe the offshore wind in the North Sea, the interconnections in the Mediterranean, and the grid reinforcement programs, whereas in the North America it would be data center, upgrades in the grid, and medium and high voltage land cables, since submarine is much rarer in the US, as you all know.

Speaker #1: But it's still a very strong year for CPW, despite the fact that the market does not really enjoy the positive tailwinds that you have in the cables segment.

Speaker #1: Let's turn now to, I think, the most important part of this presentation, which is the outlook for the rest of the year and for 2027.

Speaker #1: So what is the key takeaway of our outlook for the next year and a half? We have a very strong demand from the grid, and high-quality earnings from transmission projects.

Speaker #1: I would say that, starting from cables, that the most interesting growth themes for cables are as follows. First of all, the transmission projects. HVDC, subsea transmissions, these are the most attractive profit pool for cables.

[Company Representative] (Cenergy Holdings): I would say that starting from cables, that the most interesting growth themes for cables are as follows. First of all, the transmission projects, HVDC, sub-sea transmissions, these are the most attractive profit pool for cables, not only for Hellenic Cables, but also for the other cable operators. The growth is driven mainly by the European interconnectors, the export cables of offshore wind farms, some island interconnections, like in our case, and grid security. Margins remain structurally superior to other cable businesses. We are talking about margins which are close to higher than 20% for all of our competitors and ourselves. The importance of that growth point is that it will remain. It is driven not by a fading choice in energy sourcing, but from a much more stable choice of energy stability and energy resilience.

Alexandros Benos: I would say that starting from cables, that the most interesting growth themes for cables are as follows. First of all, the transmission projects, HVDC, sub-sea transmissions, these are the most attractive profit pool for cables, not only for Hellenic Cables, but also for the other cable operators. The growth is driven mainly by the European interconnectors, the export cables of offshore wind farms, some island interconnections, like in our case, and grid security. Margins remain structurally superior to other cable businesses. We are talking about margins which are close to higher than 20% for all of our competitors and ourselves. The importance of that growth point is that it will remain. It is driven not by a fading choice in energy sourcing, but from a much more stable choice of energy stability and energy resilience.

Speaker #1: So the growth thesis is now broadening. It's not anymore renewables and electrification. It's becoming AI, data, and electrification. And this is important because it gives us a much more stable and a wider range of possible projects for Hellenic cables in the future.

Speaker #1: Not only for Hellenic cables, but also for the other cable operators. The growth is driven mainly by the European interconnectors, the export cables of offshore wind farms, some island interconnections, like in our case, and grid security.

Speaker #1: Steel pipes is a slightly different story, as I said. Steel pipes, first of all, it's clear that coins pipe works is playing a role as a top tier one player.

Speaker #1: And margins remain structurally superior to other cable businesses. We're talking about margins which are close or higher than 20% for all of the competitors and ourselves, and the importance of that growth point is that it will remain—it is driven not by fading choice in energy sourcing, but from a much more stable choice of energy stability and energy resilience.

Speaker #1: It's not there to target every new pipeline that will come up in the Middle East or elsewhere. So to be very clear, coins pipe work is not really targeting the pipelines that you might have read about in the news and which are planned in Saudi Arabia or the Gulf.

Speaker #1: For many reasons, one of which being that these countries have their own local producers, there are already seven or eight different steel pipe factories in the Middle East, in the Gulf, and we're also talking about onshore pipelines which are clearly lower margin bringing than the offshore pipelines.

Speaker #1: The second growth theme, which evolves, the second major growth engine for cables, is AI and data centers. And they emerge as that growth engine, not only as an electricity story, but also as demand for fiber optic cables, for connections of the data centers to the grid, of upgrades to the transmission mechanisms, and that is an important step because it gives—at least for us, and very good argument for our North American foothold.

[Company Representative] (Cenergy Holdings): The second growth theme, which evolves, the second major growth engine for cables is AI and data centers. They emerge as that growth engine, not only as an electricity story, but also as demand for fiber optic cables, for connections of the data centers to the grid, of upgrades to the transmission mechanisms. That is an important step because it gives, at least for us, a very good argument for our North American foothold, because the data center story is much hotter in the North American continent, and that is where a large part of the demand is expected to come. Third point is the modernization of the grid. The International Energy Agency actually has identified that grid congestion and delays in connections are one of the biggest bottlenecks to the energy transition.

Alexandros Benos: The second growth theme, which evolves, the second major growth engine for cables is AI and data centers. They emerge as that growth engine, not only as an electricity story, but also as demand for fiber optic cables, for connections of the data centers to the grid, of upgrades to the transmission mechanisms. That is an important step because it gives, at least for us, a very good argument for our North American foothold, because the data center story is much hotter in the North American continent, and that is where a large part of the demand is expected to come. Third point is the modernization of the grid. The International Energy Agency actually has identified that grid congestion and delays in connections are one of the biggest bottlenecks to the energy transition.

Speaker #1: Secondly, with our acquisition of the UK facility, we are putting a lot of interest in the El Sao market. Now, the El Sao market, the market for pipelines which are welded across the pipeline, so it's not a spiral welding, it's a longitudinal welding, is the most profitable and growth promising segment of the oil and gas pipelines.

Speaker #1: Because the data center story is much hotter in the North American continent, and that's where a large part of the demand is expected to come.

Speaker #1: Geographically, we would say that they are the projects are concentrated in the US Gulf Coast and in the US in general, and also, of course, in Asia.

Speaker #1: Third point is the modernization of the grid. The international energy association actually has identified that grid congestion and delays in connections are one of the biggest bottlenecks to the energy transition.

Speaker #1: Now, in the former we have a very good positioning, whereas in the latter, in Asia and in Saudi Arabia, as I told you, we are not that much interested for projects there.

Speaker #1: And that's why utilities in Europe and in North America accelerate investments in transmission networks and underground cables, especially for areas that are struck by tornadoes or by large physical phenomena.

[Company Representative] (Cenergy Holdings): That's why utilities in Europe and in North America, they accelerate investments in transmission networks, underground cables, especially for areas which are struck by tornadoes or by large physical phenomena, distribution upgrades. We all know the stories about lack of charging stations in urban areas in Europe, but also in the US, and the resilience of the grid. All of these growth themes are important for the cables. The geographic winners, I would say, are in Europe, the offshore wind in the North Sea, the interconnections in the Mediterranean, and the grid reinforcement programs. Whereas in North America, it would be data center, upgrades in the grid, and medium and high voltage land cables, since submarine is much rarer in the US, as you all know. What is the key takeaway of our outlook for the next year and a half?

Alexandros Benos: That's why utilities in Europe and in North America, they accelerate investments in transmission networks, underground cables, especially for areas which are struck by tornadoes or by large physical phenomena, distribution upgrades. We all know the stories about lack of charging stations in urban areas in Europe, but also in the US, and the resilience of the grid. All of these growth themes are important for the cables. The geographic winners, I would say, are in Europe, the offshore wind in the North Sea, the interconnections in the Mediterranean, and the grid reinforcement programs. Whereas in North America, it would be data center, upgrades in the grid, and medium and high voltage land cables, since submarine is much rarer in the US, as you all know. What is the key takeaway of our outlook for the next year and a half?

Speaker #1: But the market volume is so large actually global energy monitors talks something about more than 200,000 kilometers of gas pipelines in development globally. So half of them are in areas where we are present and in areas where we are leaders.

Speaker #1: Distribution upgrades—we all know the stories about the lack of charging stations in urban areas in Europe, but also in the U.S.—and the resilience of the grid.

Speaker #1: So that just that part of the story is enough to keep us growing for the next medium term. Secondly, El Sao drives a lot of projects that are related to LNG and energy security.

Speaker #1: So all of these growth themes are important, for the cables, the geographic winners, I would say, are in Europe the offshore wind in the North Sea, the interconnections in the Mediterranean, and the grid reinforcement programs.

Speaker #1: Clearly, it also has it is related to the local changes that happen in the transportation of oil in the Middle East, but we are, as I said, we will not be present there.

Speaker #1: Whereas in the North America, it would be data center, upgrades in the grid, and medium and high voltage land cables, since submarine is much rarer in the U.S., as you all know.

Speaker #1: The margins are very attractive for El Sao, and they are attractive for booked and for high-spec players. We are not trying to underwrite the margins in order to get some business.

Speaker #1: So what is the key takeaway of our outlook for the next year and a half? We have a very strong demand from the grid, and high-quality earnings from transmission projects.

[Company Representative] (Cenergy Holdings): We have a very strong demand from the grid and high-quality earnings from transmission projects. The growth thesis is now broadening. It's not anymore renewables and electrification. It's becoming AI data and electrification. This is important because it gives us a much more stable and a wider range of possible projects for Hellenic Cables in the future. Steel pipes is a slightly different story, as I said. Steel pipes, first of all, it's clear that Corinth Pipeworks is playing a role as a top tier 1 player. It's not there to target every new pipeline that will come up in the Middle East or elsewhere. To be very clear, Corinth Pipeworks is not really targeting the pipelines that you might have read about in the news and which are planned in Saudi Arabia or the Gulf.

Alexandros Benos: We have a very strong demand from the grid and high-quality earnings from transmission projects. The growth thesis is now broadening. It's not anymore renewables and electrification. It's becoming AI data and electrification. This is important because it gives us a much more stable and a wider range of possible projects for Hellenic Cables in the future. Steel pipes is a slightly different story, as I said. Steel pipes, first of all, it's clear that Corinth Pipeworks is playing a role as a top tier 1 player. It's not there to target every new pipeline that will come up in the Middle East or elsewhere. To be very clear, Corinth Pipeworks is not really targeting the pipelines that you might have read about in the news and which are planned in Saudi Arabia or the Gulf.

Speaker #1: The level of quality and the level of delivery that coins pipe works is offering to its clients which are all the major oil and gas companies around the world means that we can keep margins to the a good sound to digit double digit levels, even though we will not be, of course, able to reach the 19% and the 18.7% that we had in the past.

Speaker #1: So the growth thesis is now broadening. It's not anymore renewables and electrification. It's becoming AI, data, and electrification. And this is important because it gives us a much more stable and a wider range of possible projects for Hellenic cables in the future.

Speaker #1: Steel pipes is a slightly different story, as I said. Steel pipes, first of all, it's clear that Corinth Pipe Works is playing a role as a top tier one player.

Speaker #1: In a nutshell, the El Sao market is not a broad commodity. Market. It is a selectively a selective market, a market that is working on tier one oil and gas approvals, on strong backlog, on high utilization, on the ability to excuse me, to actually pass through a part of the steel cost to the final client.

Speaker #1: It's not there to target every new pipeline that will come up in the Middle East or elsewhere. So to be very clear, Corinth Pipe Work is not really targeting the pipelines that you might have read about in the news and which are planned in Saudi Arabia or the Gulf.

[Company Representative] (Cenergy Holdings): For many reasons, one of which being that these countries have their own local producers. There are already seven or eight different steel pipe factories in the Middle East, in the Gulf, and we're also talking about onshore pipelines, which are clearly lower margin bringing than the offshore pipelines. Secondly, with our acquisition of the UK facility, we are putting a lot of interest in the LSAW market. The LSAW market, the market for pipelines, which are welded across the pipeline, so it's not a spiral welding, it's a longitudinal welding, is the most profitable and growth-promising segment of the oil and gas pipelines. Geographically, we would say that the projects are concentrated in the US Gulf Coast and in the US in general, and also, of course, in Asia.

Alexandros Benos: For many reasons, one of which being that these countries have their own local producers. There are already seven or eight different steel pipe factories in the Middle East, in the Gulf, and we're also talking about onshore pipelines, which are clearly lower margin bringing than the offshore pipelines. Secondly, with our acquisition of the UK facility, we are putting a lot of interest in the LSAW market. The LSAW market, the market for pipelines, which are welded across the pipeline, so it's not a spiral welding, it's a longitudinal welding, is the most profitable and growth-promising segment of the oil and gas pipelines. Geographically, we would say that the projects are concentrated in the US Gulf Coast and in the US in general, and also, of course, in Asia.

Speaker #1: For many reasons, one of which being that these countries have their own local producers, there are already seven or eight different steel pipe factories in the Middle East, in the Gulf, and we're also talking about onshore pipelines, which are clearly lower margin-bringing than the offshore pipelines.

Speaker #1: And CPW is very well positioned to take advantage of that market. Third point in steel pipes, is the UK market. Actually, the UK market is a very interesting situation because the our acquisition in Hartlepool has actually allowed us to enter a market which is closed quote unquote to everyone else.

Speaker #1: Secondly, with our acquisition of the U.K. facility, we are putting a lot of interest in the El Sao market. Now, the El Sao market, the market for pipelines which are welded across the pipeline, so it's not a spiral welding, it's a longitudinal welding, is the most profitable and growth promising segment of the oil and gas pipelines.

Speaker #1: What do I mean by that? I mean that all the competitors of coins pipe works, whether they are German or Indian or South American, they are shut out of that market because of local content clauses.

Speaker #1: Which means that the acquisition of Hartlepool offers an almost captive market which, of course, is not booming in terms of oil and gas development given.

Speaker #1: Geographically, we would say that the projects are concentrated in the U.S. Gulf Coast, in the U.S. in general, and also, of course, in Asia.

Speaker #1: The UK government's decision on renewables, but it is a very promising market to other projects such as hydrogen and CCS, carbon capture. And also, it is a very good opening for the transatlantic market due to the proximity to the US.

Speaker #1: Now, in the former, we have a very good positioning, whereas in the latter, in Asia and in Saudi Arabia, as I told you, we are not that much interested for projects there.

[Company Representative] (Cenergy Holdings): In the former, we have a very good positioning, whereas in the latter, in Asia and in Saudi Arabia, as I told you, we are not that much interested for projects there. The market volume is so large. Actually, Global Energy Monitor's talk something about more than 200,000 km of gas pipelines in development globally. Half of them are in areas where we are present and in areas where we are leaders. Just that part of the story is enough to keep us growing for the next medium term. Secondly, LSAW drives a lot of projects that are related to LNG and energy security. Clearly, it also is related to the local changes that happen in the transportation of oil in the Middle East, but as I said, we will not be present there.

Alexandros Benos: In the former, we have a very good positioning, whereas in the latter, in Asia and in Saudi Arabia, as I told you, we are not that much interested for projects there. The market volume is so large. Actually, Global Energy Monitor's talk something about more than 200,000 km of gas pipelines in development globally. Half of them are in areas where we are present and in areas where we are leaders. Just that part of the story is enough to keep us growing for the next medium term. Secondly, LSAW drives a lot of projects that are related to LNG and energy security. Clearly, it also is related to the local changes that happen in the transportation of oil in the Middle East, but as I said, we will not be present there.

Speaker #1: So coins pipe works will continue to select projects in a disciplined way some important awards are on the way and are hopefully I will be able to say more during our next meeting in November.

Speaker #1: But the market volume is so large—actually, global energy monitors talk something about more than 200,000 kilometers of gas pipelines in development globally. So half of them are in areas where we are present and in areas where we are leaders.

Speaker #1: But it's always the focus of coins pipe works is disciplined execution, niche projects, and really exploiting our top quality producer of steel pipes. The combination of very good H1 results, and a growing backlog, has led the company to upgrade our guidance for the end of 2026 by 20 million in both ends of the interval.

Speaker #1: So that just that part of the story is enough to keep us growing for the next medium term. Secondly, El Sao drives a lot of projects that are related to LNG and energy security.

Speaker #1: Clearly, it also has—it is related to the local changes that happen in the transportation of oil in the Middle East, but we are, as I said, we will not be present there.

Speaker #1: So we are now forecasting that our operational profitability will be between 390 to 420 million for the year, with the usual assumptions, of course, a smooth execution, no material deterioration in the availability or the cost of key inputs that the demand remains healthy for products and that we are we have a limited impact from major geopolitical risks.

Speaker #1: The margins are very attractive for El Sao, and they are attractive for booked and for high-spec players. We are not trying to underwrite the margins in order to get some business.

[Company Representative] (Cenergy Holdings): The margins are very attractive for LSAW, and they're attractive for booked and for high spec players. We are not trying to underwrite the margins in order to get some business. The level of quality and the level of delivery that Corinth Pipeworks is offering to its clients, which are all the major oil and gas companies around the world, means that we can keep margins to the good sound two-digit, double-digit levels, even though we will not be, of course, able to reach the 19% and the 18.7% that we had in the past. In a nutshell, the LSAW market is not a broad commodity market.

Alexandros Benos: The margins are very attractive for LSAW, and they're attractive for booked and for high spec players. We are not trying to underwrite the margins in order to get some business. The level of quality and the level of delivery that Corinth Pipeworks is offering to its clients, which are all the major oil and gas companies around the world, means that we can keep margins to the good sound two-digit, double-digit levels, even though we will not be, of course, able to reach the 19% and the 18.7% that we had in the past. In a nutshell, the LSAW market is not a broad commodity market.

Speaker #1: The level of quality and the level of delivery that Corinth Pipe Works is offering to its clients—which are all the major oil and gas companies around the world—means that we can keep margins to the good, sound, two-digit, double-digit levels, even though we will not be, of course, able to reach the 19% or the 18.7% that we had in the past.

Speaker #1: I will finish the presentation with our financial calendar. Our next appointment is for mid-November in 16th of September, of course, we will publish our interim report for the six month period of 26, but mid-November we will have our appointment for the Q3 trading update.

Speaker #1: And then early March 27 come the full year financial results with the general meeting following at the end of May. I now turn back to our operator to start the Q&A.

Speaker #1: In a nutshell, the El Sao market is not a broad commodity. Market. It is a selectively—a selective market, a market that is working on tier one oil and gas approvals, on strong backlog, on high utilization, on the ability to—excuse me—to actually pass through a part of the steel cost to the final client.

[Company Representative] (Cenergy Holdings): It is a selective market, a market that is working on tier 1 oil and gas approvals, on strong backlog, on high utilization, on the ability to excuse me, to actually pass through a part of the steel cost to the final client. CPW is very well-positioned to take advantage of that market. Third point in steel pipes is the UK market. Actually, the UK market is a very interesting situation because our acquisition in Hartlepool has actually allowed us to enter a market which is closed, quote unquote, to everyone else. What do I mean by that? I mean that all the competitors of Corinth Pipeworks, whether they are German or Indian or South American, they are shut out of that market because of local content clauses.

Alexandros Benos: It is a selective market, a market that is working on tier 1 oil and gas approvals, on strong backlog, on high utilization, on the ability to excuse me, to actually pass through a part of the steel cost to the final client. CPW is very well-positioned to take advantage of that market. Third point in steel pipes is the UK market. Actually, the UK market is a very interesting situation because our acquisition in Hartlepool has actually allowed us to enter a market which is closed, quote unquote, to everyone else. What do I mean by that? I mean that all the competitors of Corinth Pipeworks, whether they are German or Indian or South American, they are shut out of that market because of local content clauses.

Speaker #1: And CPW is very well positioned to take advantage of that market. Third point in steel pipes is the U.K. market. Actually, the U.K. market is a very interesting situation because our acquisition in Hartlepool has actually allowed us to enter a market which is closed "to everyone else," what do I mean by that?

Speaker #1: I mean that all the competitors of Corinth Pipe Works, whether they are German or Indian or South American, they are shut out of that market because of local content clauses.

Speaker #1: Which means that the acquisition of Hartlepool offers an almost captive market, which, of course, is not booming in terms of oil and gas development, given the U.K.

[Company Representative] (Cenergy Holdings): Which means that the acquisition of Hartlepool offers an almost captive market, which of course is not booming in terms of oil and gas development, given the UK government's decision on renewables, but it is a very promising market to other projects such as hydrogen and CCS, carbon capture. Also, it is a very good opening for the transatlantic market due to the proximity to the US. Corinth Pipeworks will continue to select projects in a disciplined way. Some important awards are on the way, and hopefully, I will be able to say more during our next meeting in November. It's always the focus of Corinth Pipeworks is disciplined execution, niche projects, and really exploiting our top quality producer of steel pipes.

Alexandros Benos: Which means that the acquisition of Hartlepool offers an almost captive market, which of course is not booming in terms of oil and gas development, given the UK government's decision on renewables, but it is a very promising market to other projects such as hydrogen and CCS, carbon capture. Also, it is a very good opening for the transatlantic market due to the proximity to the US. Corinth Pipeworks will continue to select projects in a disciplined way. Some important awards are on the way, and hopefully, I will be able to say more during our next meeting in November. It's always the focus of Corinth Pipeworks is disciplined execution, niche projects, and really exploiting our top quality producer of steel pipes.

Speaker #1: government's decision on renewables, but it is a very promising market to other projects, such as hydrogen and CCS, carbon capture. And also, it is a very good opening for the transatlantic market due to the proximity to the U.S.

Speaker #1: So Corinth Pipe Works will continue to select projects in a disciplined way, some important awards are on the way, and I hopefully I will be able to say more during our next meeting in November, but it's always the focus of Corinth Pipe Works is disciplined execution, niche projects, and really exploiting our top quality producer of steel pipes.

Speaker #1: The combination of very good H1 results, and a growing backlog, has led the company to upgrade our guidance for the end of 2026 by 20 million in both ends of the interval, so we are now forecasting that our operational profitability will be between 390 to 420 million for the year, with the usual assumptions, of course, of smooth execution, no material deterioration in the availability or the cost of key inputs, that the demand remains healthy for products and that we are—we have a limited impact from major geopolitical risks.

[Company Representative] (Cenergy Holdings): The combination of very good H1 results and a growing backlog has led the company to upgrade our guidance for the end of 2026 by EUR 20 million in both ends of the interval. We are now forecasting that our operational profitability will be between EUR 390 to 420 million for the year with the usual assumptions, of course, of smooth execution, no material deterioration in the availability or the cost of key inputs, that the demand remains healthy for products, and that we have a limited impact from major geopolitical risks. I will finish the presentation with our financial calendar. Our next appointment is for mid-November. In 16 September, of course, we will publish our interim report for the six-month period of 2026.

Alexandros Benos: The combination of very good H1 results and a growing backlog has led the company to upgrade our guidance for the end of 2026 by EUR 20 million in both ends of the interval. We are now forecasting that our operational profitability will be between EUR 390 to 420 million for the year with the usual assumptions, of course, of smooth execution, no material deterioration in the availability or the cost of key inputs, that the demand remains healthy for products, and that we have a limited impact from major geopolitical risks. I will finish the presentation with our financial calendar. Our next appointment is for mid-November. In 16 September, of course, we will publish our interim report for the six-month period of 2026.

Speaker #1: I will finish the presentation with our financial calendar. Our next appointment is for mid-November in 16th of September, of course, we will publish our interim report for the six-month period of '26, but mid-November we will have our appointment for the Q3 trading update, and then early March 27 come the full-year financial results, with the general meeting following at the end of May.

[Company Representative] (Cenergy Holdings): Mid-November, we will have our appointment for the Q3 trading update, then early March 2027 come the full-year financial results with the general meeting following at the end of May. I now turn back to our operator to start the Q&A section. Thank you very much.

Alexandros Benos: Mid-November, we will have our appointment for the Q3 trading update, then early March 2027 come the full-year financial results with the general meeting following at the end of May. I now turn back to our operator to start the Q&A section. Thank you very much.

Speaker #1: I now turn back to our operator to start the Q&A section. Thank you very much. Ladies and gentlemen, before we begin the Q&A session, we would like to briefly explain how questions will be managed.

Operator: Ladies and gentlemen, before we begin the Q&A session, we would like to briefly explain how questions will be managed. If you wish to ask a question live, please use the raise hand button. Alternatively, you may submit your question in writing through the Q&A panel. You can find both options at the bottom of your screen. Thank you for your participation.

Operator: Ladies and gentlemen, before we begin the Q&A session, we would like to briefly explain how questions will be managed. If you wish to ask a question live, please use the raise hand button. Alternatively, you may submit your question in writing through the Q&A panel. You can find both options at the bottom of your screen. Thank you for your participation.

Speaker #1: If you wish to ask a question live, please use the raise hand button. Alternatively, you may submit your question in writing through the Q&A panel.

Speaker #1: You can find both options at the bottom of your screen. Thank you for your participation.

[Company Representative] (Cenergy Holdings): I see we have some raised hands here. I start with Mr. Marios Bourazanis in alphabetical order. I'm sorry, I start with Mr. Marios Bourazanis. Marios, you have the floor.

Speaker #2: We do have, I see we have some raised hands here. I start with Mr. Marios Bourazanis. He is an alphabetical order. I'm sorry, so I start with Mr. Marios Bourazanis.

Alexandros Benos: I see we have some raised hands here. I start with Mr. Marios Bourazanis in alphabetical order. I'm sorry, I start with Mr. Marios Bourazanis. Marios, you have the floor.

Speaker #2: Mario, you have the floor.

Speaker #3: Thank you, thank you. I hope you can hear me, and thank you for your presentation. Just a couple of questions from my side. The first one is on the order intake.

Marios Bourazanis: Thank you. I hope you can hear me, and thank you for your presentation. Just a couple of questions from my side. The first one is on the order intake. Following the strong H1 intake, I'm wondering how we should think about the backlog development through the year-end of 2026, and how tendering activity has gone so far in H2 and if there is scope for meaningful awards for the rest of the year. That's my first question. My second question is, as the group moves past the peak of the current CapEx cycle, I was wondering how you're thinking about the next phase of growth. Are you assessing any opportunities to expand the cable footprint more ambitiously, either in Europe or in the US?

Marios Bourazanis: Thank you. I hope you can hear me, and thank you for your presentation. Just a couple of questions from my side. The first one is on the order intake. Following the strong H1 intake, I'm wondering how we should think about the backlog development through the year-end of 2026, and how tendering activity has gone so far in H2 and if there is scope for meaningful awards for the rest of the year. That's my first question. My second question is, as the group moves past the peak of the current CapEx cycle, I was wondering how you're thinking about the next phase of growth. Are you assessing any opportunities to expand the cable footprint more ambitiously, either in Europe or in the US?

Speaker #3: You know, following the strong H1 intake, I'm wondering how we should think about the backlog development through the year-end of 2026, and, you know, how tendering activity has gone so far in H2, and if there is scope for meaningful awards for the rest of the year.

Speaker #3: That's my first question. And my second question is, you know, as the group moves past the peak of the current CapEx x cycle, I was wondering how you're thinking about the next phase of growth.

Speaker #3: Are you assessing any opportunities to expand the cable footprint more ambitiously, either in Europe or in the U.S.? And, you know, if any attractive opportunities arise, how do you think we should think about funding capacity across, you know, your cash flows, your debt headroom, and potentially any other sources of capital?

Marios Bourazanis: If any attractive opportunities arise, how do you think we should think about funding capacity across your cash flows, your debt headroom, and potentially any other sources of capital? Thank you.

Marios Bourazanis: If any attractive opportunities arise, how do you think we should think about funding capacity across your cash flows, your debt headroom, and potentially any other sources of capital? Thank you.

Speaker #3: Thank you.

Speaker #2: Sure, Mario. Thank you. So first, as, yeah, the order intake was really good for the first H1, and I am—I really not believe I'm very, very confident that it will be even better in the second semester.

[Company Representative] (Cenergy Holdings): Sure, Marios. Thank you. First, the order intake was really good for the first H1, and I'm very confident that it will be even better in the second semester, not only for cables but also for steel pipes. We expect our backlog to grow significantly in the second semester. Also, I forgot to say, and this is maybe related to the new awards, that Hellenic Cables, I think it has already disclosed that it was officially certified for the 525 kV cable solutions. That's a very important result, and it will, of course, affect the awards that we will get in the second semester. As for the CapEx cycle, it is true that we do still have some strategic CapEx to do in the US. Until the end of the year, we expect construction works to finish.

Alexandros Benos: Sure, Marios. Thank you. First, the order intake was really good for the first H1, and I'm very confident that it will be even better in the second semester, not only for cables but also for steel pipes. We expect our backlog to grow significantly in the second semester. Also, I forgot to say, and this is maybe related to the new awards, that Hellenic Cables, I think it has already disclosed that it was officially certified for the 525 kV cable solutions. That's a very important result, and it will, of course, affect the awards that we will get in the second semester. As for the CapEx cycle, it is true that we do still have some strategic CapEx to do in the US. Until the end of the year, we expect construction works to finish.

Speaker #2: Not only for cables, but also for steel pipes. So we expect our backlog to grow significantly in the second semester. We also forgot to say, and this is maybe related to the new awards, that Hellenic Cables, I think it has already disclosed that it has officially—it was certified for the 525 kV cable solutions, so that's a very important result, and it will, of course, affect the awards that we will get in the second semester.

Speaker #2: As for the CapEx cycle, it is true that we do still have some strategic CapEx to do in the U.S., so until the end of the year, we expect construction works to finish.

Speaker #2: A couple of equipment is already on their way or they have already arrived in the U.S., and will be installed by the end of the year, by December, so that our—the objective is that by February 27 we will start producing samples first, medium voltage samples, and later on high voltage samples.

[Company Representative] (Cenergy Holdings): A couple of equipment is already on their way, or they have already arrived in the US and will be installed by the end of the year, by December, so that the objective is that by 27 February 2027, we will start producing samples. First medium-voltage samples and later on high-voltage samples, because as you know, we need some certification for that. The CapEx cycle is expected to go back to a much lower level of CapEx in 2027. Since there will be some good cash flow generation in 2027 and 2028, of course, the opportunities are open. We may examine some further investment in the US to actually grow the business there, or some expansion of our facilities in Greece with further optimization. That will be done following important awards in our backlog so that as we always follow that same path.

Alexandros Benos: A couple of equipment is already on their way, or they have already arrived in the US and will be installed by the end of the year, by December, so that the objective is that by 27 February 2027, we will start producing samples. First medium-voltage samples and later on high-voltage samples, because as you know, we need some certification for that. The CapEx cycle is expected to go back to a much lower level of CapEx in 2027. Since there will be some good cash flow generation in 2027 and 2028, of course, the opportunities are open. We may examine some further investment in the US to actually grow the business there, or some expansion of our facilities in Greece with further optimization. That will be done following important awards in our backlog so that as we always follow that same path.

Speaker #2: Because, as you know, we need some certification for that. So the CapEx cycle is expected to go back to a much lower level of CapEx in '27, but since there will be some—excuse me—some good cash flow generation in '27 and '28, of course, the opportunities are open.

Speaker #2: We may examine some investment in further investment in the U.S., to actually grow the business there, or some expansion of our facilities in Greece, with further optimization.

Speaker #2: But that will be done following important—important awards in our backlog, so that, as always, we follow that same path. So we first have the awards, and then we plan our expansion of capacity accordingly.

[Company Representative] (Cenergy Holdings): We first have the awards, and then we plan our expansion of capacity accordingly. I then ask Mr. Thijs Berkelder to take the floor, please.

Alexandros Benos: We first have the awards, and then we plan our expansion of capacity accordingly. I then ask Mr. Thijs Berkelder to take the floor, please.

Speaker #2: I then ask Mr. Thijs Berkelda to take the floor, please.

Speaker #4: Can you hear me?

Thijs Berkelder: Can you hear me?

Thijs Berkelder (ABN AMRO: Can you hear me?

Speaker #2: Yes, yes, we can hear you, Thijs.

[Company Representative] (Cenergy Holdings): Yes, we can hear you, Thijs.

Alexandros Benos: Yes, we can hear you, Thijs.

Thijs Berkelder: Okay. Thijs Berkelder, ABN AMRO, Oddo BHF. Can you maybe give CapEx guidance for H2, and maybe also explicitly for the Maryland factory for H2? In the press release, you just stated you expect end of construction before year-end. Does it mean so much lower CapEx than in principle for the US next year? Second question, just the data facts, assets under construction in terms of value end of H1. How large was the amount? For now, the third question is on the margins within kabel. Is it real that product margins have improved to 10% or so?

Thijs Berkelder (ABN AMRO: Okay. Thijs Berkelder, ABN AMRO, Oddo BHF. Can you maybe give CapEx guidance for H2, and maybe also explicitly for the Maryland factory for H2? In the press release, you just stated you expect end of construction before year-end. Does it mean so much lower CapEx than in principle for the US next year? Second question, just the data facts, assets under construction in terms of value end of H1. How large was the amount? For now, the third question is on the margins within kabel. Is it real that product margins have improved to 10% or so?

Speaker #4: Okay. Thijs Berkelda, ABN AMRO Auto BHF. Can you maybe give CapEx guidance for the second half of the year? And maybe also explicitly for the Maryland factory for the second half of the year.

Speaker #4: And the press release, and you just stated you expect sort of end-of-construction before year-end. Does it mean so much lower CapEx than in principle for the U.S.

Speaker #4: next year? Second question, just the data facts assets under construction, in terms of value, end of the first half. How large was the amount?

Speaker #4: And for now, the third question is on the margins within cables. Is it real that product margins have improved to 10 percent or so?

Speaker #2: Mm-hmm. Okay, so I start with the CapEx. You're right, in the second half, of course, we will have—we still have an important part of CapEx to be spent.

[Company Representative] (Cenergy Holdings): Okay, I start with the CapEx. You're right. In H2, of course, we still have an important part of CapEx to be spent. Let me clarify that this slight delay in spending the CapEx is due to invoice delays. It is not due to work delays. Whereas in theory, one could say that if you want to spend almost $170 million for the US plant in 2026, that would be split in equal parts between each semester. It wasn't. It's a little lower in H1. It's $50 million in H1, the rest, the other $120 million, will be spent in H2. The works will be finished by December, which means that what is left for 2027 is much lower.

Alexandros Benos: Okay, I start with the CapEx. You're right. In H2, of course, we still have an important part of CapEx to be spent. Let me clarify that this slight delay in spending the CapEx is due to invoice delays. It is not due to work delays. Whereas in theory, one could say that if you want to spend almost $170 million for the US plant in 2026, that would be split in equal parts between each semester. It wasn't. It's a little lower in H1. It's $50 million in H1, the rest, the other $120 million, will be spent in H2. The works will be finished by December, which means that what is left for 2027 is much lower.

Speaker #2: Let me clarify that this slight delay in spending the CapEx is due to invoice delays. It is not due to work delays. So whereas in, you know, in theory, one could say that if you want to spend 170, almost 170 million for the U.S.

Speaker #2: plants in 2026, that would be split in equal parts between the every—each semester. But it wasn't. It's a little lower in H1. It's 50 million in H1, so the rest—the other 120—will be spent in the second semester.

Speaker #2: And the works will be finished by December, which means that what is left for '27 is much lower. In '27, we are only expecting certain—certain expenditures for peripheral units or, you know, commissioning of the equipment, but not something important in the U.S.

[Company Representative] (Cenergy Holdings): 2027, we are only expecting certain expenditure for peripheral units or commissioning of the equipment, but not something important in the US. As for the margins, it is true, Thijs, that products have shown quite a strong level of around 10% in the first quarter. The margin expansion is due, as I said before, to the mix shift, to what is the mix between projects and products, and how that mix shifts. The importance for us is that our backlog is composed right now of interconnection projects, mostly. This is important because it gives us the security of a higher margin. Wind, as you know, might lead to some repricing of the projects and so on, and that might be a little bit changing the forecast of the margin. Grid projects, transmission projects give us a higher stability.

Alexandros Benos: 2027, we are only expecting certain expenditure for peripheral units or commissioning of the equipment, but not something important in the US. As for the margins, it is true, Thijs, that products have shown quite a strong level of around 10% in the first quarter. The margin expansion is due, as I said before, to the mix shift, to what is the mix between projects and products, and how that mix shifts. The importance for us is that our backlog is composed right now of interconnection projects, mostly. This is important because it gives us the security of a higher margin. Wind, as you know, might lead to some repricing of the projects and so on, and that might be a little bit changing the forecast of the margin. Grid projects, transmission projects give us a higher stability.

Speaker #2: As for the margins, it is true Thijs that products have shown quite a strong level of around 10 percent in the first quarter. However, the margin expansion is due, as I said before, it's due to the mix shift, to what is the mix between projects and products, and what is—and how that mix shifts the importance for us is that our backlog is composed right now of interconnection.

Speaker #2: Projects, mostly. And this is important because it gives us the security of a higher margin. Also, wind, as you know, might lead to some repricing of the—of the projects, and so on, and that might be a little bit kind of changing the forecasts of the margin.

Speaker #2: Whereas grid projects, transmission projects, give us a higher stability. Now, the fact that we have expanded the facilities in Greece in the land facilities in Greece as well, does not mean that we will focus on products, but at the same time, it doesn't mean that we will not focus on products.

[Company Representative] (Cenergy Holdings): The fact that we have expanded the facilities in Greece, and the land facilities in Greece as well, does not mean that we will focus on products, but at the same time, it doesn't mean that we will not focus on products. The approach of Hellenic Cables is a balanced approach. We do not want to become a project-only company. We don't want to go back to a cable commodity company. It is important for us to keep growing more in the areas where the margins are better, CF, offshore, so submarine interconnections and so on, but without leaving behind the foundation of our company, which are cable products, land cables, and so on. I believe right now the market in project is supply constrained. The market in products is related to a business cycle. It has some good results in H1.

Alexandros Benos: The fact that we have expanded the facilities in Greece, and the land facilities in Greece as well, does not mean that we will focus on products, but at the same time, it doesn't mean that we will not focus on products. The approach of Hellenic Cables is a balanced approach. We do not want to become a project-only company. We don't want to go back to a cable commodity company. It is important for us to keep growing more in the areas where the margins are better, CF, offshore, so submarine interconnections and so on, but without leaving behind the foundation of our company, which are cable products, land cables, and so on. I believe right now the market in project is supply constrained. The market in products is related to a business cycle. It has some good results in H1.

Speaker #2: The approach of Hellenic Cables is a balanced approach. We do not want to become a project-only company. We don't want to go back to a commodity cable, commodity company.

Speaker #2: It is important for us to keep growing more in the areas where the margins are better. CF, offshore, so submarine, interconnections, and so on, but without leaving behind the foundation of our company, which are cable products, land cables, and so on.

Speaker #2: So it's all I've—I believe right now the marketing project is supply constrained. The marketing product is related to a business cycle. It has some good results in H1.

Speaker #2: We expect it to have good results in H2 as well. And we do have the capacity to serve a higher demand for products, for land, medium voltage, and low voltage in the second semester.

[Company Representative] (Cenergy Holdings): We expect it to have good results in H2 as well, and we do have the capacity to serve a higher demand for products for land medium voltage and low voltage in the second semester. We expect these margins to stay where they are for the rest of the year and the beginning of 2027. There was a written question by Mr. Katsios of Optima Bank. He would like an update on Maryland and Hartlepool. I believe, Mr. Katsios, I've answered the question on Maryland. About the Hartlepool plant in the UK. The Hartlepool plant was a plant that was non-operational for nine months. We've acquired it, we've cleaned it up. We brought back all the labor back to the factory. There are some important commissioning works that have to be done, maintenance of the machines, putting back some raw material so that it can start working.

Alexandros Benos: We expect it to have good results in H2 as well, and we do have the capacity to serve a higher demand for products for land medium voltage and low voltage in the second semester. We expect these margins to stay where they are for the rest of the year and the beginning of 2027. There was a written question by Mr. Katsios of Optima Bank. He would like an update on Maryland and Hartlepool. I believe, Mr. Katsios, I've answered the question on Maryland. About the Hartlepool plant in the UK. The Hartlepool plant was a plant that was non-operational for nine months. We've acquired it, we've cleaned it up. We brought back all the labor back to the factory. There are some important commissioning works that have to be done, maintenance of the machines, putting back some raw material so that it can start working.

Speaker #2: So we expect these margins to stay where they are for the rest of the year and the beginning of '27. There is then a question—there was a question, a written question by Mr. Katsios of Optima Bank.

Speaker #2: He would like an update on Maryland and Hartlebrook. I believe Mr. Katsios, I've answered the question on Maryland. About the Hartlebrook plant in the U.K., the Hartlebrook plant is—was a plant that was non-operational for nine months.

Speaker #2: We've acquired it. We've cleaned it up. We brought back all the labor into the factory. There are some important commissioning works that have to be done.

Speaker #2: Maintenance of the machines, the, you know, putting back some raw material so that it can start working. The expect—we expect, sorry, to commence operations there even by September this year.

[Company Representative] (Cenergy Holdings): We expect to commence operations there even by September this year. We are not expecting to have high utilization rates for Hartlepool. Hartlepool was an investment decision made on the basis of a very low cost, and on the basis of the opportunity that such acquisition was opening up for the segment. We did not have an order book already built for the UK facility, as I told you, it is an opening to an almost reserved market locally and a very good facility in terms of proximity for the US market. Since we are very active in the US and we expect more awards to come from there, including the famous Alaska Pipeline, we are more than confident that some of that demand will be serviced by the UK facility. Mr. Testa, Peter Testa is asking some questions on the capacity added in Corinth and Eleonas.

Alexandros Benos: We expect to commence operations there even by September this year. We are not expecting to have high utilization rates for Hartlepool. Hartlepool was an investment decision made on the basis of a very low cost, and on the basis of the opportunity that such acquisition was opening up for the segment. We did not have an order book already built for the UK facility, as I told you, it is an opening to an almost reserved market locally and a very good facility in terms of proximity for the US market. Since we are very active in the US and we expect more awards to come from there, including the famous Alaska Pipeline, we are more than confident that some of that demand will be serviced by the UK facility. Mr. Testa, Peter Testa is asking some questions on the capacity added in Corinth and Eleonas.

Speaker #2: The—of course, we are not expecting to have high utilization rates for Hartlebrook. Hartlebrook was an investment decision made in terms on the basis of a very low cost and on the basis of the opportunity that such acquisition was opening up for the segment.

Speaker #2: We did not have an order book already built for the U.K. facility, but as I told you, it is an opening to an almost reserved market locally and a very good facility in terms of proximity for the U.S.

Speaker #2: market. Since we are very active in the U.S. and we expect more awards to come from there, including the famous Alaska pipeline, we are—we are more than confident that some of that demand will be serviced by the U.K.

Speaker #2: facility. Mr. Pesta—Peter Pesta—is adding—is asking some questions on the capacity added in coins and Eleonas. In current—the current facility in 20—when we started in 2024 and finished in 2025 in two years, we can actually say that we doubled the capacity for submarine cables.

[Company Representative] (Cenergy Holdings): In Corinth, the Corinth facility, when we started in 2024 and finished in 2025, in 2 years, we can actually say that we doubled the capacity for submarine cables. We are now working at a capacity which could be measured in terms of kilometers, but that might not be a very good expectational forecast because it supposes, actually, that we will be producing only one kind of cables in the Corinth facility. If you assume that we produce 1 type of cables, we could say that the offshore capacity of Corinth is now close to 2,000 kilometers of inter-array cables and another 800 kilometers of DC export, high-voltage AC and DC cables. For Eleonas and Thiva, things are different. In Thiva, we have actually doubled again.

Alexandros Benos: In Corinth, the Corinth facility, when we started in 2024 and finished in 2025, in 2 years, we can actually say that we doubled the capacity for submarine cables. We are now working at a capacity which could be measured in terms of kilometers, but that might not be a very good expectational forecast because it supposes, actually, that we will be producing only one kind of cables in the Corinth facility. If you assume that we produce 1 type of cables, we could say that the offshore capacity of Corinth is now close to 2,000 kilometers of inter-array cables and another 800 kilometers of DC export, high-voltage AC and DC cables. For Eleonas and Thiva, things are different. In Thiva, we have actually doubled again.

Speaker #2: And we are now working at a capacity which could be measured in terms of kilometers, but that might not be a very, very good—very good expectation of forecast, because it—it supposes—actually, that we will be producing only one kind of cables in the current facility.

Speaker #2: But if you assume that you—we produce one type of cables, we could say that the offshore capacity, of course, is now close to 2,000 kilometers of inter-array cables, and another 800 kilometers of DC export, high-voltage AC and DC cables.

Speaker #2: For Eleonas and Thiva, things are different. In Thiva, we have actually doubled again. We passed from 3 to 5 insulation machines, and now to 6 insulation machines, which means, again, that we have doubled capacity.

[Company Representative] (Cenergy Holdings): We passed from three to five insulation machines, and now to six insulation machines, which means again, that we have doubled capacity. We're talking about Thiva having a capacity of more than 60,000 tons in land cables, and Eleonas, a similar amount. Now, will there be some progress in the high voltage market? Well, the high voltage market, we're already there for the European market. In the US, this is our next phase II. The US, we will first wait to see how the medium voltage land cables market evolves. We will go to a later phase. We will go to some development of the high voltage there in 2028, 2029, some investments there. There is another question. Oh, there is a question by Mr. Kaparis, Stathis Kaparis. Stathis, you can have the floor. Then I will go on with the other written questions.

Alexandros Benos: We passed from three to five insulation machines, and now to six insulation machines, which means again, that we have doubled capacity. We're talking about Thiva having a capacity of more than 60,000 tons in land cables, and Eleonas, a similar amount. Now, will there be some progress in the high voltage market? Well, the high voltage market, we're already there for the European market. In the US, this is our next phase II. The US, we will first wait to see how the medium voltage land cables market evolves. We will go to a later phase. We will go to some development of the high voltage there in 2028, 2029, some investments there. There is another question. Oh, there is a question by Mr. Kaparis, Stathis Kaparis. Stathis, you can have the floor. Then I will go on with the other written questions.

Speaker #2: We're talking about Thiva having a capacity of more than 60,000 tons, in land cables, and Eleonas a similar—a similar amount. Now, will there be some progress in the high-voltage market?

Speaker #2: Well, the high-voltage market, we are already there. In—for the European market, in the U.S., this is our next phase two. So the U.S.—we will first wait to see how the medium voltage land cables market evolves.

Speaker #2: And we will go to a later—to a later phase. We'll go to some development of the high-voltage there in 2028, 2029, some investments there.

Speaker #2: There is another question—oh, there is a question by Mr. Kaparis, Stats Kaparis, so Static, you can have the floor, and then I will go on with the other written questions.

Stathis Kaparis: Hi, thank you. Thanks a lot for taking the question. I've got two, if I may. The first one is on the margin, the cable margin. I don't know what you could say. I'm trying to isolate the one-off timing impact. Can you hear me?

Stathis Kaparis: Hi, thank you. Thanks a lot for taking the question. I've got two, if I may. The first one is on the margin, the cable margin. I don't know what you could say. I'm trying to isolate the one-off timing impact. Can you hear me?

Speaker #1: And I thank you—thanks a lot for taking the question. I've got two, if I may. The first one is on the margin, the cable margin.

Speaker #1: I don't know what you could say. I'm trying to isolate the one of, you know, timing impact. Can you hear me?

Speaker #2: Yeah, we lost you a little bit, Static, so you please could you—could you, yeah.

[Company Representative] (Cenergy Holdings): Yeah, we lost you a little bit, Stathis. Please could you.

Alexandros Benos: Yeah, we lost you a little bit, Stathis. Please could you.

Speaker #1: Yeah. I was—I was actually asking about the cable in H1. It's significantly stronger. You have explained the reasons, but I was—I wanted to isolate the one-off effect of mix and potential timing, project timing, just to understand what the underlying cable margin is expected, what was it in Q2 potentially versus Q1, what was the difference.

Stathis Kaparis: I was actually asking about the cable in H1. It's significantly stronger. You have explained the reasons, but I wanted to isolate the one-off effects of mix and potential timing, project timing, just to understand what the underlying cable margin is expected. What was it in Q2 potentially versus Q1? What was the difference? That's number one. Number two, on the cash flow. I'm trying to reconcile the pretty much stable net debt between H1 and H2. I suspect the 1.121 leverage is justified by the increased LTM EBITDA. That leaves us with net cash flow of zero. If my calculation is correct, you should generate 150 operating cash flow.

Stathis Kaparis: I was actually asking about the cable in H1. It's significantly stronger. You have explained the reasons, but I wanted to isolate the one-off effects of mix and potential timing, project timing, just to understand what the underlying cable margin is expected. What was it in Q2 potentially versus Q1? What was the difference? That's number one. Number two, on the cash flow. I'm trying to reconcile the pretty much stable net debt between H1 and H2. I suspect the 1.121 leverage is justified by the increased LTM EBITDA. That leaves us with net cash flow of zero. If my calculation is correct, you should generate 150 operating cash flow.

Speaker #1: That's number one. And number—number two on the cash flow, I'm trying to reconcile the pretty much stable net debt between H1 and H2. I suspect the 1.1 to 1 leverage is justified by the increased LTM EBITDA.

Speaker #1: So that leaves us with net cash flow of zero if—if my calculation is correct, you should generate 150 operating cash flow, working capital is a reversal of probably more than 100, and then you have 20 of dividend, and then the capex, you mentioned is probably 120 Maryland, because if I remember well, the Hartlebrook, you—you guided for 143 to 20 million, you've already paid that.

Stathis Kaparis: Working capital is a reversal of probably more than 100. You have 20 of dividends. The CapEx you mentioned is probably 120 Maryland, because if I remember well, the half of all you guided for 146 to 20 million, you've already paid that.

Stathis Kaparis: Working capital is a reversal of probably more than 100. You have 20 of dividends. The CapEx you mentioned is probably 120 Maryland, because if I remember well, the half of all you guided for 146 to 20 million, you've already paid that.

Speaker #1: So that leaves potentially—that leaves 100, 150 million?

Stathis Kaparis: Potentially that leaves EUR 100 million, EUR 150 million.

Stathis Kaparis: Potentially that leaves EUR 100 million, EUR 150 million.

Speaker #2: Well, let's start with—you—you understand, Static, that I cannot really give numbers, here, that— Forecast.

[Company Representative] (Cenergy Holdings): Well, let's start with, you understand, Stathis, that I cannot really give numbers here.

Alexandros Benos: Well, let's start with, you understand, Stathis, that I cannot really give numbers here.

Speaker #1: No, no, just directly. Thank you.

Stathis Kaparis: No, just direction.

Stathis Kaparis: No, just direction.

[Company Representative] (Cenergy Holdings): focus.

Alexandros Benos: focus.

Stathis Kaparis: Thank you. Yes.

Stathis Kaparis: Thank you. Yes.

[Company Representative] (Cenergy Holdings): Just directions. Okay. That cable margin, it was right now above 19%. That cable margin is a combination of the projects and the products. It is true, as Thijs mentioned before, that the products have given us almost a 10% margin, which is good, and that combines with the 20-plus margins from projects to give a level of 19%. What we expect the levels to be at the end of the year is around that level, around the 18% to 19%. It all depends on the product mix and on which projects will be executed until year-end. These are the ranges, the trends that we expect. The cables are expected to turn in around 18% margins for the year, 18.5% margins for the year. The free cash flow, you're right, we have another EUR 120 million to spend on the US.

Alexandros Benos: Just directions. Okay. That cable margin, it was right now above 19%. That cable margin is a combination of the projects and the products. It is true, as Thijs mentioned before, that the products have given us almost a 10% margin, which is good, and that combines with the 20-plus margins from projects to give a level of 19%. What we expect the levels to be at the end of the year is around that level, around the 18% to 19%. It all depends on the product mix and on which projects will be executed until year-end. These are the ranges, the trends that we expect. The cables are expected to turn in around 18% margins for the year, 18.5% margins for the year. The free cash flow, you're right, we have another EUR 120 million to spend on the US.

Speaker #2: Just directions. Okay. The cable margin was right now at above 19 percent. Now, that cable margin is a combination of the projects and the products.

Speaker #2: It is true, as Thais mentioned before, that the products have given us almost a 10 percent margin, which is good. And that combines with the 20-plus margins from projects to give a level of 19 percent.

Speaker #2: What we expect the levels to be at the end of the year is around that level. Around the 19, 18 to 19 percent. It's all depends on the product mix and on which projects will be executed until year-end.

Speaker #2: But these are the—the ranges—the trends that we expect. The cables are expected to turn in around 18 percent margins for the year. 18, 18 and a half margins for the year.

Speaker #2: Now, the free cash flow, you're right, we have another 120 million to spend on the U.S., this is out of the share capital increase, so it doesn't really affect the—the cash flow generation.

[Company Representative] (Cenergy Holdings): This is out of the share capital increase. It doesn't really affect the cash flow generation. The overall story that you are describing is more or less correct. There will be less than almost, I say less than EUR 30 million in a sense, EUR 25 to 30 million left for CapEx non-US related in the second half, that will allow us, linked, of course, to the generation from profitability, that allow us some good cash flow production by the end of the year. In 2027, things will be better in that sense, since we do not expect to have the same CapEx levels as we had in the past, the EUR 235 million of 2025 or even more than EUR 235 million this year, including the US. This is the correct trend for the future.

Alexandros Benos: This is out of the share capital increase. It doesn't really affect the cash flow generation. The overall story that you are describing is more or less correct. There will be less than almost, I say less than EUR 30 million in a sense, EUR 25 to 30 million left for CapEx non-US related in the second half, that will allow us, linked, of course, to the generation from profitability, that allow us some good cash flow production by the end of the year. In 2027, things will be better in that sense, since we do not expect to have the same CapEx levels as we had in the past, the EUR 235 million of 2025 or even more than EUR 235 million this year, including the US. This is the correct trend for the future.

Speaker #2: But the overall story that you are describing is more or less correct. So there will be, you know, less than—almost, I’d say—less than €30 million, in a sense, €25–30 million left for capex, non-U.S.

Speaker #2: related, in the second half. And that will allow us, linked of course to the generation from profitability, that allow us some good cash flow production by the end of the year.

Speaker #2: And in 2027, things will be better in that sense, since we do not expect to have the same capex levels as we had in the past, you know, the 235 million of '25 or even more than 235 million this year, including the U.S.

Speaker #2: So this is—this is the correct trend for the future. I turn to some written questions, because there is, you know, time is a little bit, you know, limiting.

[Company Representative] (Cenergy Holdings): I turn to some written questions because time is a little bit limiting. There is a question by Mr. Bruno Raguer. How could I describe the current pipeline of opportunities in steel pipes? Is it bigger, more attractive than a year ago, or about stable? I believe it is more attractive than a year ago, not because the market has grown up a lot, but because we have been able to show to our prospective clients that we can be there in the very difficult projects that they are thinking about. In projects that are demanding and that either local producers or lower quality producers cannot deliver. It is an attractive market for 2027, and we are very close to some awards that can actually give us visibility further in 2028 for steel pipes. Now, cables. Correct. We announced that our HVDC capabilities have been certified.

Alexandros Benos: I turn to some written questions because time is a little bit limiting. There is a question by Mr. Bruno Raguer. How could I describe the current pipeline of opportunities in steel pipes? Is it bigger, more attractive than a year ago, or about stable? I believe it is more attractive than a year ago, not because the market has grown up a lot, but because we have been able to show to our prospective clients that we can be there in the very difficult projects that they are thinking about. In projects that are demanding and that either local producers or lower quality producers cannot deliver. It is an attractive market for 2027, and we are very close to some awards that can actually give us visibility further in 2028 for steel pipes. Now, cables. Correct. We announced that our HVDC capabilities have been certified.

Speaker #2: There is a question by Mr. Bruno Raguier. How could I describe the current pipeline of opportunities in steel pipes? Is it bigger, more attractive than a year ago, or about stable?

Speaker #2: I believe it is more attractive than a year ago, not because the market has grown up a lot, but because we have been able to show to our prospective clients that we can be there in the very difficult projects that they are thinking about.

Speaker #2: So in projects that are demanding, and that either local producers or lower quality producers cannot deliver. So it is an attractive market for '27, and we have—we are very close to some awards that can actually give us visibility further in '28 for steel pipes.

Speaker #2: Now, cables—correct—we announced that our HVDC capabilities have been certified. That opens up additional project opportunities. You are absolutely right, because it opens up the opportunity for more HVDC projects.

[Company Representative] (Cenergy Holdings): That opens up additional project opportunities, you are absolutely right, because it opens up the opportunity for more HVDC projects in Europe, not only in Greece, but also in Europe. Absolutely correct. There is a question by Mr. Tanush Shekhar on future acquisitions in the US in the next five years. Well, we could theoretically talk about that around a cup of tea, but the market and the US market is actually so fluid that there could be opportunities. You are right. Some other large manufacturers, our large competitors, have acquired companies in the US. The US market and US producers will have a lot of consolidation in the years to come. Once our facility there is stable and produces good revenues, we may, of course, examine acquisition opportunities over there.

Alexandros Benos: That opens up additional project opportunities, you are absolutely right, because it opens up the opportunity for more HVDC projects in Europe, not only in Greece, but also in Europe. Absolutely correct. There is a question by Mr. Tanush Shekhar on future acquisitions in the US in the next five years. Well, we could theoretically talk about that around a cup of tea, but the market and the US market is actually so fluid that there could be opportunities. You are right. Some other large manufacturers, our large competitors, have acquired companies in the US. The US market and US producers will have a lot of consolidation in the years to come. Once our facility there is stable and produces good revenues, we may, of course, examine acquisition opportunities over there.

Speaker #2: In—in Europe, not only in Greece, but also in Europe. Absolutely correct. There is a question by Mr. Tanush Shekhar on future acquisitions in the U.S., in the next five years.

Speaker #2: Well, it's—we know we could theoretically talk about that, you know, around a cup of tea, but it's the—the—the market and the U.S. market is actually so fluid that there could be opportunities, you're right, some other large manufacturers are, large competitors have acquired companies in the U.S., the U.S.

Speaker #2: There will be a lot of consolidation in the U.S. market and among U.S. producers in the years to come. So, once our facility there is stable and generating good revenues, we may, of course, examine acquisition opportunities over there.

[Company Representative] (Cenergy Holdings): Mr. Yannick Nass, does the somewhat higher oil price change the outlook for steel pipes a bit over the next few years compared to the beginning of the year? I would say yes, because you have, excuse me, new oil routes being designed, but not very much for our side since we are more axed around demanding projects, offshore projects, and so on. I do not. It is good to have a high oil price for us, for this segment. A low oil price means that exploiting, developing new fields is not interesting, and therefore, if it is not interesting, you do not need pipelines to actually transport the oil or the natural gas. Clearly, higher oil prices are important.

Alexandros Benos: Mr. Yannick Nass, does the somewhat higher oil price change the outlook for steel pipes a bit over the next few years compared to the beginning of the year? I would say yes, because you have, excuse me, new oil routes being designed, but not very much for our side since we are more axed around demanding projects, offshore projects, and so on. I do not. It is good to have a high oil price for us, for this segment. A low oil price means that exploiting, developing new fields is not interesting, and therefore, if it is not interesting, you do not need pipelines to actually transport the oil or the natural gas. Clearly, higher oil prices are important.

Speaker #2: Mr. Yannick Nath, does the somewhat higher oil price change the outlook for steel pipes a bit over the next few years compared to the beginning of the year?

Speaker #2: I would say yes, because you have—excuse me—new oil routes being designed, but the—not very much for our side, since we are more—you know, axed around demanding projects offshore projects and so on.

Speaker #2: So, I do not—yeah, it's good to have a high oil price for us, you know, for this—for this segment. A low oil price means that exploiting or developing new fields is not interesting, and therefore, if it's not interesting, you do not need pipelines to actually transport the oil or the natural gas.

Speaker #2: So clearly, higher oil prices are important. But it's the—the—the more general picture that we get in the international oil and gas market, and not specific news that may come in the Gulf or in Saudi Arabia or elsewhere.

[Company Representative] (Cenergy Holdings): It is the more general picture that we get in the international oil and gas market, and not specific news that may come in the Gulf or in Saudi Arabia or elsewhere. The more general picture is clearly positive. There is a question, actually a couple of questions by Mr. David DeLongo. He asked me to confirm EUR 120 million of CapEx for H2. The EUR 120 million is what I mentioned is the CapEx for the US plant, and I confirm that clearly for the US plant in the second semester. I cannot really confirm anything else for the second semester. Clearly for the US plant, that is the amount of money we will need to finish up construction by December. The working capital dynamics.

Alexandros Benos: It is the more general picture that we get in the international oil and gas market, and not specific news that may come in the Gulf or in Saudi Arabia or elsewhere. The more general picture is clearly positive. There is a question, actually a couple of questions by Mr. David DeLongo. He asked me to confirm EUR 120 million of CapEx for H2. The EUR 120 million is what I mentioned is the CapEx for the US plant, and I confirm that clearly for the US plant in the second semester. I cannot really confirm anything else for the second semester. Clearly for the US plant, that is the amount of money we will need to finish up construction by December. The working capital dynamics.

Speaker #2: The more general picture is clearly positive. There is then a question—actually a couple of questions—on by Mr. David Elongo, I—he asked me to confirm 120 million of capex for H2, the 120 million is what I mentioned is the capex for the U.S.

Speaker #2: plant, and I confirm that, clearly, for the U.S. plant in the second semester. But I cannot really confirm anything else for the—the—the second semester.

Speaker #2: But clearly, for the U.S. plant, that's the amount of money we will need to finish up construction by December. The working capital dynamics, now, the working capital dynamics are quite seasonal, because we do have milestone payments and advance payments throughout the year, especially in the last two months of the year.

[Company Representative] (Cenergy Holdings): Now, the working capital dynamics are quite seasonal, because we do have milestone payments and advance payments throughout the year, especially in the last two months of the year. It is, yeah, we are expecting to get back to a lower level of net debt to EBITDA, around one, by the end of the year, even lower than one. It will depend on the scheduling of milestone payments that will also affect working capital by the end of the year. Finally, again, yeah, the CapEx for 2027, since the US will not be there and most of the large capacity expansions in Greece have been completed, the CapEx in 2027 will be much lower. We're talking about around EUR 60 to 70 million maintenance CapEx for both segments, plus a small number for optimization projects here and there.

Alexandros Benos: Now, the working capital dynamics are quite seasonal, because we do have milestone payments and advance payments throughout the year, especially in the last two months of the year. It is, yeah, we are expecting to get back to a lower level of net debt to EBITDA, around one, by the end of the year, even lower than one. It will depend on the scheduling of milestone payments that will also affect working capital by the end of the year. Finally, again, yeah, the CapEx for 2027, since the US will not be there and most of the large capacity expansions in Greece have been completed, the CapEx in 2027 will be much lower. We're talking about around EUR 60 to 70 million maintenance CapEx for both segments, plus a small number for optimization projects here and there.

Speaker #2: So it is, yeah, we—we are expecting to get back to a lower level of net debt to EBITDA around one, by the end of the year.

Speaker #2: Even lower than—than one. But it will depend on the scheduling of payments of milestone payments that will also affect working capital by the end of the year.

Speaker #2: And finally, again, yeah, the capex for 2027, since the U.S. will not be there and most of the—of the large capacity expansions in Greece have been completed, the capex in '27 will be much lower.

Speaker #2: We're talking about around 60 to 70 million maintenance capex for both segments, plus a small number for, you know, optimization projects here and there.

Speaker #2: I do not include in these numbers either the U.K. plant that may need maybe 10 to 15 million for full commissioning, or the small amounts that may be needed in the U.S.

[Company Representative] (Cenergy Holdings): I do not include in these numbers either the UK plant that may need maybe EUR 10 to 15 million for full commissioning or the small amounts that may be needed in the US in 2027. Unless, of course, the scope of our US presence changes, and this is still under discussion. No decision has been made. I will want, since we are kind of limited in time, I would like to give the floor to certain people that have not asked questions before. Mr. Testa and Mr. Berkelder, you will excuse me, but I have to give the floor to a couple of participants that have not asked questions in the past. Mr. Balwinder S. Thaker, you have the floor, please.

Alexandros Benos: I do not include in these numbers either the UK plant that may need maybe EUR 10 to 15 million for full commissioning or the small amounts that may be needed in the US in 2027. Unless, of course, the scope of our US presence changes, and this is still under discussion. No decision has been made. I will want, since we are kind of limited in time, I would like to give the floor to certain people that have not asked questions before. Mr. Testa and Mr. Berkelder, you will excuse me, but I have to give the floor to a couple of participants that have not asked questions in the past. Mr. Balwinder S. Thaker, you have the floor, please.

Speaker #2: in the 2027. Unless, of course, the scope of our U.S. presence changes, and this is still under discussion. No decision has been made. I will want, since we have—we are kind of limited in time, I would like to give the floor to certain people that have not asked questions before.

Speaker #2: So Mr. Testa and Mr. Beckilder, you will excuse me, but I have to give the floor to a couple of participants that have not asked questions in the past.

Speaker #2: So Mr. Bowen Tucker, you have the floor, please.

Balwinder S. Thaker: Thank you very much for taking my question. I have one on your outlook as to what you're assuming on the low end and the high end of your adjusted EBITDA outlook. If I recollect your commentary about cable margins remaining strong in H2, plus UK Hartlepool facility becoming operational from September onward, though at a lower utilization level.

[Analyst 1]: Thank you very much for taking my question. I have one on your outlook as to what you're assuming on the low end and the high end of your adjusted EBITDA outlook. If I recollect your commentary about cable margins remaining strong in H2, plus UK Hartlepool facility becoming operational from September onward, though at a lower utilization level.

Speaker #1: Thank you so much for taking my question. I have one on your Outlook as to what you're assuming on the low end and the high end of your adjusted EBITDA outlook.

Speaker #1: So if I recollect your commentary about cable margins remaining strong in 2H, plus U.K. Hartlepool facility becoming operational from September onward, though at a lower utilization level, can you please share, like, what—why we are—like, what you're assuming at the high end and the low end, like, what is keeping us away from the high end, to be honest?

Balwinder S. Thaker: Can you please share what you're assuming at the high end and the low end? What is keeping us away from the high end, to be honest?

[Analyst 1]: Can you please share what you're assuming at the high end and the low end? What is keeping us away from the high end, to be honest?

Speaker #2: Well, what is keeping us away from the high end is the uncertainty around the global market, to be very honest with you. If that uncertainty is not there, then we are closer to the high end, for sure.

[Company Representative] (Cenergy Holdings): Well, what is keeping us away from the high end is the uncertainty around the global market, to be very honest with you. If that uncertainty is not there, then we are closer to the high end, for sure. Because H1, the EUR 216 million has already given us a very good foundation on which to base the profitability for the year. There are a lot of factors which are unknown at the time, and one day we are reading about something in the Straits of Hormuz, next day we are reading about AI being a total bubble, and so on. The cautiousness that we want to keep is what makes us put down a lower end in our profitability interval. You are right. If these things do not exist, then we will be above the midpoints of our interval, for sure.

Alexandros Benos: Well, what is keeping us away from the high end is the uncertainty around the global market, to be very honest with you. If that uncertainty is not there, then we are closer to the high end, for sure. Because H1, the EUR 216 million has already given us a very good foundation on which to base the profitability for the year. There are a lot of factors which are unknown at the time, and one day we are reading about something in the Straits of Hormuz, next day we are reading about AI being a total bubble, and so on. The cautiousness that we want to keep is what makes us put down a lower end in our profitability interval. You are right. If these things do not exist, then we will be above the midpoints of our interval, for sure.

Speaker #2: Because, you know, the first semester, the 216 million has already given us a very, very good foundation on which to—to—to base the profitability for the year.

Speaker #2: But there are a lot of factors which are unknown at the time, and, you know, one day we're reading about something in the Straits of Ormuz, next day we're reading about, you know, AI being a total bubble, and so on.

Speaker #2: So the cautiousness that we want to keep is what makes us put down a lower end in our—in our profitability interval. So you're right.

Speaker #2: If these things do not exist, then we will be above the midpoints of our interval, for sure.

Speaker #1: Thank you so much. And one more subsea cable capacity utilization: like, could you share an approximate, like, where the current utilization may be—may have been, in 1H?

Balwinder S. Thaker: Thank you so much. One more from me on your subsea cable capacity utilization.

[Analyst 1]: Thank you so much. One more from me on your subsea cable capacity utilization.

Balwinder S. Thaker: Could you share an approximate, where the current utilization may have been in H1?

[Analyst 1]: Could you share an approximate, where the current utilization may have been in H1?

Speaker #2: Oh, the—the subsea cable utilization is very close to full utilization. You know, the Corinth plant is working seven days a week—well, six days a week; the seventh day is really for, you know, maintaining and tuning up the equipment.

[Company Representative] (Cenergy Holdings): The subsea cable utilization is very close to full utilization. The Corinth Pipeworks is working 7 days a week. Well, 6 days a week. The 7th day is really for maintaining and tuning up the equipment. Three shifts a day. It is at full utilization. There is no question on that. The land cables are a little bit lower because we are still ramping up the last insulation machine, which will be fully operational by early September, and that will also go towards 85%+ utilization. We are working at very good levels for cables. Steel pipes is different. LSAW is very well utilized, the capacity, at 3 shifts a day, 5 days a week. Spiral and ERW is a little bit lower, and we do have space for the larger projects to come, like the Alaska Pipeline.

Alexandros Benos: The subsea cable utilization is very close to full utilization. The Corinth Pipeworks is working 7 days a week. Well, 6 days a week. The 7th day is really for maintaining and tuning up the equipment. Three shifts a day. It is at full utilization. There is no question on that. The land cables are a little bit lower because we are still ramping up the last insulation machine, which will be fully operational by early September, and that will also go towards 85%+ utilization. We are working at very good levels for cables. Steel pipes is different. LSAW is very well utilized, the capacity, at 3 shifts a day, 5 days a week. Spiral and ERW is a little bit lower, and we do have space for the larger projects to come, like the Alaska Pipeline.

Speaker #2: And three shifts a day, so it’s at full utilization—there’s no question on that. The land cables are a little bit lower because we are still ramping up the last insulation machine, which will be fully operational by early September.

Speaker #2: And so that will also go towards 85-plus utilization. So yeah, we are working at—at very good levels. For cables, steel pipes is different. El Sao is very well utilized, the capacity.

Speaker #2: At three shifts a day, five days a week. Spiral and ERW are a little bit lower. And we do have space for the larger projects to come like the—the Alaska pipeline.

Speaker #1: Thank you so much.

Balwinder S. Thaker: Thank you so much.

[Analyst 1]: Thank you so much.

[Company Representative] (Cenergy Holdings): Finally, Mr. Athanasakis, I ask you to be quite brief because we are already at four o'clock. Thank you.

Speaker #2: And—and finally, Mr. Afanasakis, I ask you to be quite brief, because we are already at four o'clock. Thank you.

Alexandros Benos: Finally, Mr. Athanasakis, I ask you to be quite brief because we are already at four o'clock. Thank you.

Speaker #3: Thank you very much for giving me the opportunity to ask a question. I wanted to come back to the cable margins. The—the—the participation of projects in the mix executed this half was similar to last year.

[Analyst]: Thank you very much for giving me the opportunity to ask a question. I wanted to come back to the cable margins. The participation of projects in the mix executed this half was similar to last year.

[Analyst 2]: Thank you very much for giving me the opportunity to ask a question. I wanted to come back to the cable margins. The participation of projects in the mix executed this half was similar to last year.

[Company Representative] (Cenergy Holdings): The sound is not very good, George. Could you please repeat, because the sound is a little bit muffled?

Alexandros Benos: The sound is not very good, George. Could you please repeat, because the sound is a little bit muffled?

Speaker #2: The sound is not very good, George. Could you please repeat? Because the sound is a little bit muffled.

Speaker #3: Yes, I—I said that I wanted to come back to the cable margin. The participation of projects in the first half this year was similar—actually a bit lower than last year.

[Analyst]: I said that I wanted to come back to the cable margin.

[Analyst 2]: I said that I wanted to come back to the cable margin.

[Analyst]: The participation of projects in the H1 this year was similar, actually, a bit lower than last year. The margin was a lot higher. Even if one assumes that the projects have a margin of close to 10%, which is higher than in the past, the resulting margin for the projects is a lot higher. I was wondering, is this due to the execution of specific projects, or is this a permanently higher pricing level that we should expect to continue going forward? Whether this sort of margin is embedded in your backlog.

[Analyst 2]: The participation of projects in the H1 this year was similar, actually, a bit lower than last year. The margin was a lot higher. Even if one assumes that the projects have a margin of close to 10%, which is higher than in the past, the resulting margin for the projects is a lot higher. I was wondering, is this due to the execution of specific projects, or is this a permanently higher pricing level that we should expect to continue going forward? Whether this sort of margin is embedded in your backlog.

Speaker #3: But the margin was a lot higher. Even if one assumes that the projects have a margin of close to 10 percent, which is higher than in the past, the resulting margin for the projects is a lot higher.

Speaker #3: And I was wondering: is this due to the execution of specific projects, or is this a permanently higher pricing level that we should expect to continue going forward?

Speaker #3: And whether this—this—this sort of margin is embedded in your backlog?

Speaker #2: Right. Okay, no, it is not—

[Company Representative] (Cenergy Holdings): Right. Okay. No, it is not.

Alexandros Benos: Right. Okay. No, it is not.

[Analyst]: It looks more like 30 minus than 20% plus in the projects.

[Analyst 2]: It looks more like 30 minus than 20% plus in the projects.

Speaker #3: It looks more like 30 minus than 20 percent plus in the projects.

[Company Representative] (Cenergy Holdings): Yeah. I get the question. Okay.

Alexandros Benos: Yeah. I get the question. Okay.

Speaker #2: Yeah. I—I get the question. Okay. It is not an increase. It is not due to a permanent price increase in projects. No. It is due to the mix of projects we have executed and, let's not forget, that executing a project means that in certain cases we have a larger share of the installation part, which means that without a significant cost, you do have a part of the profitability.

[Analyst]: Thank you.

[Analyst 2]: Thank you.

[Company Representative] (Cenergy Holdings): It is not an increase. It is not due to a permanent price increase in projects. No. It is due to the mix of projects we have executed, and let's not forget that executing a project means that in certain cases, we have a larger share of the installation part. Which means that without a significant cost, you do have a part of the profitability. What may happen is that being in the installation part, even without your vessel, if the subcontractor has the vessel, the Hellenic Cables, that is the project manager, can actually make a good profit on a part where it is not spending money because it is not actually using a vessel, since we don't have a vessel. It is not spending money for raw material or other production, and it is getting a part of the profit after paying the installer as a subcontractor.

Alexandros Benos: It is not an increase. It is not due to a permanent price increase in projects. No. It is due to the mix of projects we have executed, and let's not forget that executing a project means that in certain cases, we have a larger share of the installation part. Which means that without a significant cost, you do have a part of the profitability. What may happen is that being in the installation part, even without your vessel, if the subcontractor has the vessel, the Hellenic Cables, that is the project manager, can actually make a good profit on a part where it is not spending money because it is not actually using a vessel, since we don't have a vessel. It is not spending money for raw material or other production, and it is getting a part of the profit after paying the installer as a subcontractor.

Speaker #2: So, what may happen is that, being in the installation part, even without your vessel—if the subcontractor has the vessel—Hellenic Cables, that is, the project manager, can actually make a good profit on a part where it is not spending money, because it is not actually using a vessel. Since we don't have a vessel, it is not spending money for raw material or other production.

Speaker #2: And it is getting a part of the profit after paying the installer as a subcontractor. And there have been a couple of projects like that, where the non-production—so there were—there were projects with a lower production part.

[Company Representative] (Cenergy Holdings): There have been a couple of projects like that. There were projects with a lower production part. The margins that you may think about, 19%, 20%, 25%. 25% is when I have a cable, I produce it, and then I install it, and I make a profit on the full amount. If I produce a little bit, but I take a higher part of profit on the installation, these margins can go much higher. I cannot say more than that, but you understand the small detail which comes out of that. It is not a permanent price increase, it is clearly a mix effect, not a permanent price increase. We were very happy to have very good projects this H1.

Alexandros Benos: There have been a couple of projects like that. There were projects with a lower production part. The margins that you may think about, 19%, 20%, 25%. 25% is when I have a cable, I produce it, and then I install it, and I make a profit on the full amount. If I produce a little bit, but I take a higher part of profit on the installation, these margins can go much higher. I cannot say more than that, but you understand the small detail which comes out of that. It is not a permanent price increase, it is clearly a mix effect, not a permanent price increase. We were very happy to have very good projects this H1.

Speaker #2: So the margins that you may think about, you know, 19, 20, 25 percent, 25 percent is when I have a cable, I produce it, and then I install it, and I make a profit on the—on the full amount.

Speaker #2: If I produce a little bit but I take a higher part of profit on the installation, these margins can go much higher. I cannot say more than that, but you understand the small, you know, detail which comes out of that.

Speaker #2: So it's not a permanent price increase. It is clearly a product—a mix—a mix effect, not a permanent price increase. And we were very happy to have very good projects this first semester.

Speaker #2: That's why I said that overall in the year we expect the margins to stay between the 18 and 19 percent level. For cables.

[Company Representative] (Cenergy Holdings): That's why I said that overall in the year, we expect the margins to stay between the 18% and 19% level for cables.

Alexandros Benos: That's why I said that overall in the year, we expect the margins to stay between the 18% and 19% level for cables.

Speaker #3: Thank you so much. Thank you.

[Analyst]: Thank you so much. Thank you.

[Analyst 2]: Thank you so much. Thank you.

[Company Representative] (Cenergy Holdings): Ladies and gentlemen, thank you. Sorry for being over the time. Thank you so much for being with us on this August afternoon. I wish everyone a very happy and relaxing vacation, and I reiterate our next appointment for mid-November. Thank you very much, and have a nice afternoon.

Alexandros Benos: Ladies and gentlemen, thank you. Sorry for being over the time. Thank you so much for being with us on this August afternoon. I wish everyone a very happy and relaxing vacation, and I reiterate our next appointment for mid-November. Thank you very much, and have a nice afternoon.

Speaker #2: Ladies and gentlemen, thank you. Sorry for being—you know—over the time. Thank you so much for being with us on this August afternoon. I wish everyone a very happy and relaxing vacation.

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