Good afternoon. This is the Chorus Call conference operator. Welcome, thank you for joining the Saras Q1 2023 Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star 0 on their telephone. At this time, I would like to turn the conference over to Ms. Ilaria Candotti, Head of Investor Relations. Please go ahead, madam. Good afternoon, everybody. Thank you for joining us today for this conference call on Saras first quarter results. As usual, you should have received the related press release a few hours ago, and you can find the analyst presentation on our website and home page under the Investor Relations section. Our agenda today will start with Franco Balsamo, Deputy CEO and General Manager, that will introduce the headlines for the Q1. Afterwards, Marco Schiavetti, Chief Commercial Officer, will present the highlights of the refining market in Q1 and the related outlook for the rest of the year. At this point, Fabio Peretti, CFO, will follow presenting the financials of Q1 and a review of results of each of our segments. At the end of Franco, we will display the new strategic guidelines for the medium and long term that have been approved by the board this morning. You should have received the related press release as well. We will be glad to start with the Q&A session. At this time, I would like to hand over to Franco. Thank you, Ilaria, and thank you all for joining our Q1 results conference call today. Today is a great opportunity for me to present a very solid set of economic and financial results. Also, the opportunity to introduce our management team, Marco Schiavetti and Fabio Peretti. I will start the presentation providing the main highlights of the quarter, and later on, Marco and Fabio will complete my presentations. I will conclude with trying to clarify where we stand today, our strategic vision, and our effort to transition this company from a pure refiner, as it is today, to a sustainable, profitable, and growing energy player. Let me start with the results of this quarter. EBITDA comparable at € 285 million, reflecting a very positive scenario and strong operating performance. Net income comparable at € 162 million. CapEx at € 41 million and a very positive cash positions that reached € 355 million of liquidity at the end of the quarter. The outlook is confirmed as positive, albeit from a lower base for middle distillate, with the demand increase from the reopening of China and recovery of international travel. Marco will explain you better our our outlook. The market scenario in Q1 has been favorable, and our industrial marketing margin reached $16 per barrel, securing a premium to EMC of $6, slightly above our our guidance, proving again the high quality of our refining asset. In particular, diesel and gasoline cracks remain solid, while the moderation of power prices reduced our refining energy cost. Despite inflation, our fixed cost remained broadly in line with the first quarter of last year, confirming that our effort to contain cost and reduce our operating leverage is delivering a good result. Our comparable EBITDA reached € 285 million in the quarter. We are very comfortable with our guidance of a $5-$6 premium above EMC for the full year. I take the opportunity now to stress that these operating results are not only strong, but are also a reflection of a resilient business model. Essentially, it's reducing our exposure to market dynamics and the progress we are making in the development of renewable will provide a solid edge against the volatility of power prices and CO2. The combination... In the quarter, the combination of our strong operating performance and the normalization of tax rate without any extraordinary new taxes led to € 162 million of comparable net profit. CapEx in Q1 were entirely dedicated to the maintenance plant on our refinery. We have a small but accelerating investment in order to advance the construction of our 80 MW of solar plant Elianto that will be fully in operation early next year. Finally, our cash position, as said before, positive, reached € 355 million. Fabio will explain you better that during the first quarter that we have generated € 250 million of cash from the operations. Part of it has been utilized to our working capital. Fabio will explain you better. Now, I leave the floor to Marco to discuss the market environment. Thank you, Franco, for the introduction. Good afternoon, everyone. As Franco mentioned before, Q1 has been a very strong quarter, in line with previous one, driven mainly by very strong middle and light distillate cracks. We have had the usual high volatility of crude oil pricing, of oil prices, floating between $70 and $90 per barrel with an average around $80. As you can notice, a very wide range, generating a very high volatility. From an economic standpoint, to be highlighted that the ongoing concerns of an economic slowdown in Europe and the U.S., with high inflation and interest rate hikes by the central banks, the collapse of some U.S. banks first, followed by Credit Suisse. Finally, on oil markets on February 5th, as everybody knows, the start of the embargo on oil products out of Russia, with a strong preventive gas oil stock build, anticipating a potential supply shock that in reality never materialized. The recent market managed to rebalance quite quickly, with diesel cracks starting to reduce from mid of the quarter since the market was well supplied. I will come back later on this subject. Diesel flows from Russia have been strongly supported by some countries acting like a load automaton in a completely legal manner like mainly Turkey and a few others. On the other side, a group of refineries, mainly in India, have been able to produce large quantities of diesels to export to fuel to Europe at very favorable prices, thanks to a large supply of Urals at discounted prices. Finally, on the crude side, light heavy differential widened during the quarter, reflecting high demand for light and resilient rich crudes and lower demand from Asian buyers for Middle East heavy sour crudes, displaced by, as I mentioned before, discounted Urals. Moving to cracks, as you can see from the graphs, from the two charts, gasoline continued to be very strong, well above historical averages, thanks to healthy demand driven mainly by the reopening of China after COVID, with very strong passenger and flight indicators, and also from a persistent octane shortage due to some missing components flows from Russia. Gasoline was also supported by a resilient demand of the private sector in Europe and the U.S, and also by an intense maintenance season. As I already explained, also diesel cracks report values above historical averages in the quarter, but with a strong decline starting from mid of February, just after the embargo. The fear the supply shortfall in Europe after the Russian embargo has not materialized. The risk premium induced by this geopolitical shock has disappeared almost immediately after the start of the embargo. This coupled with some capacity additions coming on stream during the quarter. In particular, I would like to highlight that the Al-Zour refinery in Kuwait able to consistently increase the supply of middle distillate in Europe and Iberia. Another important point during the quarter affecting distillate crack, distillate cracks mainly is the additional refining capacity that increased by almost 2 million barrels per day between the end of the last year and this quarter, after a couple of years of closures and underinvestment in the sector. On the demand side, a slowdown was reported in Europe as well as in other OECD countries with lower manufacturing output, which has typically a direct impact on heavy road traffic and thus on middle distillates. I will go again on this point during the outlook. Moving to energy costs, we had in term of electricity prices, we are coming back to more normal level, always above historical averages. Obviously, the normalization of natural gas prices as well as gas storages that have been filled ahead of the winter, are definitely impacting also on electricity prices leading to lower values. In terms of CO2 prices, we continue to float between $80-$90 per barrel, substantially in line with the previous quarters. Moving now to our margins, Frank already explained what happened during Q1. We have been able to deliver again a strong performance with a premium over the benchmark of $6, in line with the guidance and also showing obviously a very strong performance both in terms of operations and commercial. Moving to the outlook. I strongly believe that current level of middle distillate cracks are totally unjustified given actual economic cycle, we are expecting a strong rebound that is already materializing during these days. Today, distillate cracks are going up by almost $2 per barrel. We are quite positive on this. We are actually below pre-COVID levels, which makes absolutely no sense given supply disruptions and demand patterns during 2023. Demand prospects are very good. All reporting agencies are pointing to an increase of around 2 million barrels per day during 2023, notwithstanding all the fears of economic downturn due to inflation, mainly in the OECD countries. China will continue to drive the demand growth during the year. Passengers and flight indicator will continue to remain strong for the rest of the year, leading to additional demand, in particular for jet and gasoline. In addition, as usual, we are approaching the summer driving season that in particular in U.S. is very supportive for demand and gasoline cracks. On the supply side, also the situation is quickly improving. These are stocks in West Europe and Med are finally coming down after the strong stock build, as I mentioned before, ahead of the Russian products embargo. We are quickly returning to normal level, and this will give upward pressure to middle distillate cracks that is already happening in these days. Some support will also come from run cuts, mainly in Asia, that will fight supply in the area as well as from the persistent of same shortage that I explained before, which will have an impact, a positive impact on light distillate cracks. The pace of capacity additions also will slow down during the remaining part of the year. There are also some delays expected. It is worldwide to a large year that the lacking of the investments in the E&P sector is also materializing in the refining sector. We are in the middle of the last wave of capacity additions, mainly in Middle East and China. After 2025-2026, for several years, nothing else will materialize. There are really no other projects, this will be very supportive for refining margins with all demand that will continue to grow in the decade. Last thing, also this one very important, is that some pressure is mounting in Europe between oil operators. Starting to complain because, at the end, huge flows of diesel are still coming into Europe and directly despite of the embargo, as I explained before. This in my opinion will lead to some pressure on the authority of the various states in order to take action and to reconsider some embargo mechanisms that, in my opinion, are not really working. At this point, let me hand over to Fabio for the financial review. Thank you, Marco. If we look at the group financial highlights, the reported EBITDA in Q1 2023 amounted to € 246 million, up by almost € 90 million from the same quarter of last year. The positive change is primarily attributable to a completely changed scenario into other performances. Post a comparable level, the EBITDA stood at € 285 million, up from € 156 million in Q1 2022. We remind that the comparable EBITDA does not include the negative effect of the scenario in changing inventories between the start and the end of the period, while increased impact of current derivatives. As already mentioned by Franco, Q1 saw a reduction in our company exposure to commodity. Exposure to CO2 has declined to 156,000 tons in the quarter, down from 188,000 tons in the same quarter of last year. This year, we have benefited from higher CO2 allocation compared to last year. In 2023, our free allocation will increase to 2.1 million tons, up from 1.8 million tons of last year, which saw a reduction due to the lower refinery throughput during the COVID period. As a consequence, our yearly net exposure will be of 0.5 million tons, down from 0.5 million tons of last year. In Q1, our exposure to power price was limited by the 45% tax credit on the energy cost introduced by the Decreto Aiuti- Ter that reduced our cost of power of € 25 million. It was partially offset by the cap on renewable production price that reduced our renewable power sales, € 40 million. This mechanism will remain in place in Q2, although with a reduction in the tax rate benefit from 45% to 20%. In the second half of 2023, both the cap on renewable and the subsidy should be lifted. This will temporarily increase our exposure to power price that will decline again in 2024, when the expected increase in our renewable production will lower our group net consumption. The group reported net income was € 200 million compared to € 110 million achieved in Q1 last year. In addition to the effects already seen at the EBITDA level, this variance is mainly attributable to higher taxes in line with the realized profit. The group comparable net income was almost € 240 million compared to € 60 million in Q1 2022. As anticipated, the net financial position has improved to € 365 million from € 269 of last year end. It is key to explain the dynamic, and I will take you through in a minute. If we go into the various segments, into the industrial and marketing, in Q1, the comparable EBITDA was € 279 million versus € 45 million in the same period of last year. Within this result, the remuneration of the power plant under the essenzializzato regime accounted for € 27 million, € 11 million higher compared to last year, mainly due to the increase of the rate of return on invested capital. This will lead the yearly power plant remuneration at € 108 million, up from € 63 million in 2022. The marketing channel accounted for almost € 50 million, up from € 6 million achieved last year. As mentioned, this result is mainly due to the higher crack, both on diesel and gasoline, and to the lower cost of vent, partially offset by the higher premiums on light sweet crudes. Also our performance was stronger compared to last year. Our trading activities were able to continue to achieve very strong performances, benefiting from both favorable market conditions and the positive effect of term contracts that were negotiated last year, and will continue to support our performance also for the rest of the year. From an industrial point of view, despite the maintenance activities carried out in the quarter, we were able to achieve higher production rate compared to the same period of last year and to our guidance. As mentioned, the first quarter 2023 saw a significant reduction in variable costs, benefiting a lower energy and CO2 cost that were partially compensated by inflationary effects on the cost of chemical, catalyst, and movers. System cost reduced as well, the reduction was in line with expectation and mainly due to lower maintenance cost. Our CapEx stood at almost € 40 million, in line with expectation and increasing from € 19 million in 2022, mainly to the additional turnaround activities carried out in the quarter and the substitution of the catalyst on one of the two mild hydrocracker. Moving to the renewable segment, 2023, EBITDA was € 6 million, down € 9 million from last year result. The EBITDA reduction was largely driven by the reduction in power tariff that was € 97 per MWh, compared to € 174 last year. The tariff reduction is related on one side, on the aggregate share of production under the $60 price cap. That is 53% in Q1 2023 versus 42% in Q1 2022, when it started in February. Secondly, to the lower market price that was € 137 per MWh in Q1 2023 versus € 234 in the same period of last year. Q1 production was lower of about 13 gigawatt hour compared to the one of last year, with a reduction attributable to lower wind speed for 5 gigawatt hour, grid limitation 3 gigawatt hour, and mechanical availability 5 gigawatt hour. For what concerns our development activities, we are continuing the realization of Elianto, for which expect a commercial operation date in June 2024. We expect the further development CapEx to be € 59 million, of which remaining 48 in 2023 and 13 in 2024. In 2023, we also expect to receive the full authorization for 2 additional greenfield wind projects, Aquila and Boreas, located in Sardinia, from overall potential capacity of 100 megawatt. We expect these two new wind field to be developed in 2024 and to reach their commercial operation date in 2025. As anticipated by Franco, renewables are a key part of our strategy, both because they are providing long-term growth prospect, but also hedging and risk reduction. It's obvious that all of this would not make any sense if we cannot deliver returns and create value. We are currently investing in projects that are entirely developed internally with a relatively quick time to market. We are carefully assessing our capital allocation, considering the CapEx per megawatt and the current price, power price outlook. We're extremely comfortable on our return and payback of this project, and absolutely clear on the fact that returns are a prerequisite for our investment. For what concerns our net financial position, we ended Q1 with a net cash position of € 365 million, up from € 269 million in December 2022. During Q1, we generated some € 251 million of operating cash flow, of which € 41 million were absorbed by CapEx and € 114 million were temporarily allocated in our working capital. In Q1, our working capital increased due to the increase in inventories, mainly related to the need of stockpile for maintenance activities and crude purchased from longer distances, and because of a reduction of trade payables. Indeed, in this quarter, we have decided to temporarily leverage our excess cash to reduce the cost of financing our working capital, which is currently minimal. Without investment in our working capital, our net financial position would have exceeded € 500 million, but we would have missed the opportunity to capture solid spreads, and our performance would have been lower. In this regard, it's worth to mention that in Q2, we will have material cash out for the dividend payment, the windfall tax, and the income tax payment. The overall amount will be in the range of € 500 million. Our working capital will evolve during the year with dependent price, margin and performance, but it's important that you look at our balance sheet, taking also this into consideration. We reiterate our target to maintain a positive cash position by year-end, but it is clear that this number alone has little meaning. Turning to the 2023 result guidance for our Industrial and Marketing segment, we started the year with a very solid first quarter. Margin has been high and so has our performance. As anticipated by Marco in the second quarter, the quarter in which most of our maintenance is concentrated, margin are shrinking. Market expectation are that this may increase again in the second half of the year when our refinery runs will be back at the average level. We keep our expectation of a premium versus EMC reference margin unchanged in the range between $5-$6 per barrel, granted on a first quarter which achieved a $6.1 premium that was higher than expected. Thanks to the Q1 results, we upgraded our guidance on crude runs by 4 million barrels to an annual total throughput between 93-98 million barrels. Fixed cost guidance remain unchanged. We are trimming out the CapEx guidance of € 10 million, while activities to review and optimize our investment scope of work are still ongoing. For what concerns Renewable, our first quarter production was lower than expected, and as a consequence, we expect our yearly production to be in the range of 280 gigawatt hours. CapEx guidance remain unchanged in the range of € 60 million-€ 70 million, largely driven by Elianto development, that as said, is expected to reach its commercial operation date in June 2024. Lastly, based on the current market expectation on refining margin and the above mentioned guidance on our performance, we confirm our target to maintain a positive CapEx cash position by year-end. I will be happy to take any questions during the Q&A, but now let me leave the floor to Franco. We would like to underline that there is a mistake in the chart, number 11. Sorry, Emanuele. Ilaria will tell you. Yes, if you look at the chart at page 11 in the financial highlights, there is a mistake. If you look at the reported net results, which is inside of € 200 million, is 139. If you look at the comparable net results for Q1 2023, inside of € 239 is 172. I will ask your attention if you look at the comment on the comparable Q, the comparable net result for Q1 2023, does not leave out any effect of the one-off items which I referred to before. Okay. Thank you very much. Your part will not be happening. I would like to take additional time of our time to introduce our strategic guidelines and visions. Today the board approved the medium and long-term strategic guidance of the group, object of a multi-year plan that we presented in the coming month. The purpose of which is to evolve and develop the group business from a pure refiner to a sustainable energy player. As our chairman affirmed today, the new strategic guidance with goals that are in keeping with the global acceleration in the energy transitions and the path already started in recent years, are the foundations for a new business model that will combine the world of refining with the sector of renewables. It is important because it allow us to position the group in the best possible way to hive the growing long-term opportunity offered by new technologies aimed at decarbonizations. Indeed, over the past few years, our business, as you will discuss over many quarters, faced a dramatic volatility. We came out of this with a strong balance sheet, we return to a solid dividend that will be paid in the coming days. Now, the decarbonization of the energy sector will keep bringing its challenges, but also great opportunity to our company. Conventional and renewable business are set in the medium term to converge with renewable power productions, becoming increasingly more relevant to achieve higher efficiency in decarbonization of business like our hard to abate. This will lead to a greater electrification of industrial process and will also provide a solid platform for the potential, I repeat, potential evolution of green hydrogen and e-fuels. Market conditions and regulation might change, Saras has a strong positioning to exploit at the best of this expected convergence. Indeed, I repeat, firstly, we have a best in class refining asset, which is delivering well above average margins. Secondly, we have a solid financial structures. Thirdly, we have well developed a robust renewable expansion plan. Therefore, I would like to take the opportunity of this meeting to explain a little better our strategy and our visions. In particular, today, I will provide the highlight, the vision, our strategy, and in the coming meeting in July, I will provide you more details and financial results. In a few words, we see four clear strategic guidelines. Decarbonization is first, optimization, risk reduction and growth. Decarbonization, as previously mentioned, carbon-free technology, sooner or later, in relation to the evolution of new regulation, will integrate our conventional business and redefine the role of refiners in a decarbonized world. There is a long way to go. The regulation is not well defined and might change in the coming years. We are building now a platform that can exploit the synergies of this convergence. Today, we can count on a very solid pipeline of renewable projects that exceed 600 megawatts. Equally, this company has been exploring biofuel. On green hydrogen, we are working together with Enel Green Power, we are assessing carbon sequestration potentially in joint venture with I-REC. Many initiatives are on course. They are going on. Value optimizations. Over the past few years, we improved our resilience and flexibility, we will keep working to further enhance our operational excellence to retain our competitive levels. With the same focus, we will keep optimizing our balance sheet in order to reduce the cost of capital. Third, risk reductions. A key pillar of our risk reduction is the regime of essenzialità for our power plant. This is hedging both our CO2 and our electricity exposure. Although this is guaranteed on an annual basis because the regulation works in this way, we do not expect this to change in foreseeable futures before the completion of the electric interconnection between Sardinia and the peninsula, that Terna announced by 2028, 2023. Finally, is the value creative growth, because this transitions implies that we allocate our capital to increasingly more sustainable and long-dated activities. Growth is important, but it is not enough. We are an energy group with a solid presence in the country, expertise in the with authorities, we can tap into different and numerous opportunities. The key challenge for us is not only the growth, but the combination between growth and the capital allocations. We are very aware that our investment will have to deliver returns to allow to maintain our current financial strength needed to keep investing in innovation and sustainable technologies for the years to come. We therefore need to carefully select our investment, considering the return and the risk profile, not at any cost. There are 3 actions that we have taken in place and we are still in place. The first one is the efficiency we have in place. We have already identified additional actions to further enhance the productivity through a progressive and continuous optimizations of operating and commercial activities and investment. This is an ongoing process aimed to increase the flexibility and resilience to the volatility of the market. This will keep gradually more sustainable our margin premium. The growth on the renewable and the acceleration on growth. Following the material improvement of our balance sheet, we now have the financial power to expand our renewable activity. We want to target 1 gigawatt of installed capacity by next 4 or 5 years, so by 2028. We're not telling the financial resources, but over the years, we have developed through our company. Good afternoon. Thank you for taking my questions. First of all, thank you for the presentation. I think investors will appreciate the efforts in making a long-term strategic view, especially given the question marks around the future of refining in the next decade. This transition, of course, it doesn't come for free, and it comes with a cost, which is the CapEx that you need to deploy, especially in the renewables. I'm trying to get a sense of what is the level of CapEx that this transition requires, let's say up to 2028. Is it fair to assume that potentially, the traditional business requires something around maybe € 150 million of CapEx, and maybe there could be another € 100 million of CapEx every year financed through equity, so not project finance, that we will see repeating for the next few years, that is probably gonna go up going forward. That's the first question on CapEx. Mr. Pozzi. Excuse me, sir. Could you please speak closer to the microphone? We don't hear you very well. Okay. That's fine. Is it better now? Yes. The first question was on CapEx and the level of CapEx required over the next few years to support the transition. The level of basically CapEx in renewables and the CapEx in the traditional business. That could be potentially around maybe € 150 million in traditional business and maybe another € 100 million in the renewables aside. I was wondering if you can sense-check those numbers? Okay. The second question on net, is on net cash. If you can give us maybe a bit more color on how the net cash is going to evolve. I believe there's going to be € 500 million of cash outflows, including dividend, and including the tax, the windfall tax, as well. I think your guidance is for a small surplus by year-end. If you can give us maybe a bit more color on what you mean by that? Thank you very much. That with you, Alessandro ? Okay. For what concern the cash out, we expecting Q2 to have the following payout. € 180 million will be for the dividend payment. We will have € 170 million that will be for the windfall, from the remaining part of the windfall tax. We will have additional € 160 million for the income tax payment that will be due to both the 2022 and the account for 2022. What about working capital? Because I've seen that you've changed the definition as well on the working capital compared to year-end. Yes. Commercial stock have gone up. How should we think about the overall the commercial stock working capital over the next few quarters? For what concerns the working capital, our objective and strategy is unchanged, and is to have it balanced. Of course, in Q1, having a situation in which we had some excess liquidity that we will have to return in term of tax and in term, as I said, dividend and so on. We have used part of this cash to reduce the cost of our working capital, reducing a little bit our trade debts. This will normalize along the rest of the year. It's going to reduce from 800 plus to a more normal level? Yes, correct. Okay. Okay. Okay. Good afternoon, Alessandro. Coming back to your question related to CapEx. Just to make a global recap. For now we have 170 megawatts of installed capacity, and we are completing the 80 megawatt of solar plants. Let me say that we have 120 megawatts of installed capacity. Our strategy is to reach 1,000 megawatt or 1 gigawatt. Taking considerations, a proxy of 1 million for single megawatt, the solar costs less, the wind costs more, needs to invest roughly € 750 million in order to reach additional 750 megawatt. Starting from the assumption that 60% will be supported by project finance without recourse to the shareholders, the equity needed in order to support this business is in the region of € 250 million-€ 300 million, that will be invested in the course on the next 4 years. Having said that, we are developing our pipeline, so we have financial flexibility in order to set our investment in line with our capability to support the new investment process. On the other side, we have, thanks to our internal development, we have the opportunity to invest a reasonable good to the return. The CapEx is will be managed in order to mix timing and financial flexibility. Okay. just a follow-up on the pipeline. Do you still expect to have 100% spot exposure or do you expect to have more PPA or to have PPA signed at some point in the future? The PPA, as you well know, is one of the topics of this development. We are internally setting an organization in order to negotiate the PPA with our counterparties. As we know, the PPA market is not very liquid, but there are opportunities to create these infrastructures in order to reduce also our credit risk on the project financing and to increase potentially the financial leverage. Okay. We'll see more PPA going forward, basically? Okay. Sounds good. Thank you. I'll turn it back. The next question is from Niccolo Storer of Kepler. Good afternoon. Thanks for taking my question, and sorry if this topic has already been addressed. I was able to join the conference just a few minutes ago. The question is about power generation business. I see that the EBITDA from the business is much higher compared to last year, € 27 million. For the full year, should we expect € 27 million times Q4, over € 100 million compared to the € 55-60 of previous year? If this is right, is reasonable assuming that your premium over EMC of around $6 per barrel, $5-$6 per barrel is $2 power generation, half a dollar marketing, and the remaining part coming from refining activities? Thank you. For what concern the remuneration of the power plant, your assumption is right. It's € 27 million the first quarter, and we expect it, and it will be € 108 million for the whole year. In terms of premium, I think you are right. It's just a matter of calculation with the runs that we have, but sounds good, your number. Thank you. Can you also confirm that the tax advantage you have been having for being an energy-intensive company is also part of that premium? Yes, it is. We will have it also in Q2, and, the percentage will reduce from 45% to 20%. Thank you. I just would like to in addition to your question related to the remuneration of the essentiality. As we know, our plant is by far the largest source of baseload generation of electricity in Sardinia. In the future, the interconnection within, with Italy, should it is expected by the end of this decade. The essentiality is something that is reducing our risk profile, but is in the essential point of view, very stable until the connections between the peninsula and Sardinia. Let's say in the period between 2028 and 2030. Will be a source of adding liquidity for the next 5 or 7 years. Thank you. Maybe a follow-up on this. Can you explain what drove such a sizable year-on-year improvement in the remuneration for the capital invested? It was a matter of rate, it was a matter of higher capital in the plant? in reality, both the reason, but the main part was the rate of return. Indeed, this year the authority has aligned the rate of return for the essential power plant that are as our under the cost reimbursement scheme to the one utilized for the infrastructural works, the so-called WACC, and this has given a little bit of a change compared to last year. Of course, our return is a nominal pre-tax level and is also impacted by the inflation that we are having these years. Thank you. The next question is from Massimo Bonisoli of Equita SIM. Good afternoon. A couple of questions. One regards the process volumes of the refining. You were guiding for Q1 volumes or runs from 20 million-22 million barrel. Whereas you provided 25 million barrel production in Q1, beating the expectation. Q2 are seen, let's say, well below the Q1 volumes. What are the likelihood that you will beat again those volume into Q2, or let's say, you will have a much stronger production? This is the first question. The second is the visibility of the pipeline in renewable from 2025-2028. So you're adding 500 megawatt in capacity, if you can provide some color on the visibility of the pipeline. All the authorization in place and, let's say, all the issues needed to have a clearer picture on that, on that pipeline. Also, another small question regarding the increasing provision on the allowance of CO2 in Q1 increased by more than € 110 million. Just to understand why the increase is of such a magnitude. Thank you. Okay. For what concerns the crude runs, our expectation for Q2 are in line with the guidance that we have just given. We have to consider that Q2 will be a quarter full of maintenance and therefore there will be also some risk related to the execution of the maintenance activities. In Q1, it was higher because we have moved the shutdown of one topping that was expected in Q1, we have moved it in Q2 during the shutdown of the gasification, so without impact in term of crude run. That's why we have a higher crude run in Q1. For the CO2, as I mentioned, the reality is that we had lower free allowances last year, that they were cut because the refinery had low runs during the 2 years of COVID. This gave us a reduction on, in terms of free allowances of about 0.3 million tons. We are now back to usual level at 2.1 million tons per year. As far as your question on the visibility of our pipeline, as I said before, our pipeline in Sardinia is very solid. It's been developed internally. Nowadays we have 600 megawatt of pipeline, of which 80 megawatt are authorized. They are under constructions. Roughly 400 megawatt, we have all the land lease, we have all the grid connections, we have all the agreement with the local municipalities because we are not developing our pipeline through recourse to individuals or private investors. All our agreement are within the local authorities. We have already requested the VIA. Some of these are the attention of the council, the ministry. The additional 260 MW, we have already received the approval from the, for the grid connection. I will be more precise in the next meeting. Our pipeline is solid. It's not a PowerPoint presentation. Are a different project with a very solid and with many milestone of authorizations already received. Very clear. Thank you. The next question is from Marco Cristofori, Intesa Sanpaolo. Good afternoon, everyone, everybody. Again, 1 question on your pipeline in the renewables. It seems to me that you are always starting from greenfield, and my question is if you would consider any acquisition in renewables? Would you also consider investment in portable tie apart from Elianto, as it seems to me that you are concentrating on wind. Finally, I didn't understand well an answer before. You mostly increase your forecast of crude runs for 2023. If your team can give more color on this increase. Thank you. Okay. For what concerns the increase in crude runs, we actually complete the first quarter having a higher crude runs of about 4 million barrel compared to the guidance. This was due the move or the shift of the maintenance activities on 1 topping that will not affect the production on the remaining part of the year. The new guidance is based on the Q1 result plus the same guidance for the remaining quarter. Okay. On your question on the in our M&A activity in renewables. At the time being, we are not considering M&A as a source of developing. I explain my be better. Our target is to reach one gigawatt of capacity, as I said before, in the next four or five years, mainly by through the realization of our internally developed pipeline. Nevertheless, we could consider some opportunity to join some new partnerships through local developer, but we are ready and we are considering the opportunity to buy some permits if they are deeply in the money at a reasonable price. As I said before, for us it's important to reach the quantity of installed capacity, bearing in mind and accordingly to the return, in our capital structures and our financial flexibility. Okay. Thank you. As a reminder, if you wish to register for a question, please press star and 1 on your touchtone telephone. For any further questions, please press star and 1 on your telephone. Ms. Candotti, gentlemen, there are no more questions registered at this time. Okay. Thank you, everybody. We remain available for any other question you might have with the investor relations department. Thank you very much, and, see you at the end of July. Bye-bye.