Good morning, ladies and gentlemen. This is my pleasure to welcome you at the headquarters of PGNiG. The conference has been designed to present the financial results for the second quarter and the first half year of 2022. A very warm welcome to those who follow us online on our website and social media profiles. We are presenting financial results. This is our tradition to have Mr. Przemysław Wacławski presenting the results, who is responsible for finances. We've got Artur Cieślik, the strategy and regulation board member. He'll be joining us in the second part of the session, discussing the key activities in the recent months and weeks. Without any further ado, I'd like to request Mr. Wacławski to give us an insight into financial results. Good morning, ladies and gentlemen. We've been brought together here in order to discuss the PGNiG Capital Group's financial results for the first half of 2022. Before I delve into the discussion about the results, I believe that we should have a flashback of history and macroeconomy so that we understand what we have witnessed in the first part of the year, which has also shaped the financial results. Let us start with the second half year of 2021, which was a very important moment. It was the price volatility which resulted in gas market being also volatile in Poland and Europe. Why am I speaking about it? It was the second part of the last year which resulted in legislation change effective January 2022. The change in legislation impacted our financial results. These will be discussed in the later part of the presentation. Still, I want you to remember the background information related to the fact that the compensation system, the tariff increased by 84% for households and target clients, schools, kindergartens, and similar, resulted in the fact that we generated a loss, which was compensated in the second part of 2021 and the beginning of 2022. It was PLN 3 billion more or less. A very important transaction happened in the first half year of this year. We were forced to sell the mandatory 900 million cubic meters to the Agency of National Reserves. There is a number of solutions like these that will be discussed in the course of the presentation. Now, speaking about financial results of the group. 2% increase in sales volume. 18,622 million cubic meters of gas sold. If we exclude this mandatory sell that was mentioned a moment ago, there was a decline in volume by 3% compared to the second half of last year, so we sold less gas. Still, I need to make one more reservation. There was a general decline in sales of gas in Poland by 7%, owing to the warmer first part of this year compared to the same period of last year, and natural decline in demand for gas related with global price increases of hydrocarbons. Why do we have only 3% volume decline in gas sales? This is related to Norwegian shelf gas production increase, which will be related later on. What I'm doing now is the comparison. The first half of 2021, continental shelf, 0.4 billion cubic meters sold. This year, 1.5 billion cubic meters. The 2% is the decline in 3% of volume with 7% decline in Poland. Speaking about financial results, it comes as no surprise that there has been a huge increase in carbon prices in the world. There's 200%+ income, PLN 78 billion. What followed was the cost of gas production, so operational cost, PLN 66.5 billion, EBITDA PLN 50 billion. We're going to delve into details when split into particular segments of business activities. What you are going to see is that the EBITDA was generated in exploration and production, which comes as no surprise at all. Other segments had smaller contribution towards the result. EBIT less than PLN 12 billion. Net income, less than PLN 5 billion. Now, let's have a look at particular segments and impacts on group's EBITDA. The exploration and production segment in the first half of 2022, the segment's contribution 89%, as you can see graphical presentation, but this is the share in the +1. If we want to show it against the whole EBITDA, the segment generated much better result compared to the whole capital group, PLN 16 billion. We'll be speaking about it. Storage, this is negative PLN 3.6 billion. There is an impact on EBITDA at the level of 89%. Two other segments are pretty stable when it comes to EBITDA. This will be discussed in a moment. However, there is upstream segment, great result with smaller impact on group's EBITDA in total. As you can see, 7% in distribution, production 4%. When we speak about amounts, these are comparable with the first half of 2021. Now let's speak about particular segments. Exploration and Production segment. This generates the greatest result, being the biggest beneficiary of market changes. Unprecedented increase in the prices. Not only do we speak about natural gas, but also crude oil prices, which has had a great impact on upstream results of all companies. Year-on-year increase of 86% of Brent crude oil, $456 per barrel. The arithmetic average of the day-ahead markets, PLN 337,766 per kilowatt hour. Huge increases. The exploration production segment benefited the most from that. This very good result, what was it impacted by? The answer is the increase of volumes in the Norwegian Continental Shelf. Please remember that we finalized a big transaction last year. It was INEOS assets that were taken over, and as the result, Q4 last year resulted in production and sales included in the result. Last year, first half of 2021, we didn't have the exploration, production and sales. Therefore, 2021 increase up to $0.74 billion and 70% increase in natural gas production, 3.5 billion cubic meters in the first part of this year, compared to 2.3 billion cubic meters last year, which is 3x the increase of gas production in Norwegian Continental Shelf. Please remember, it was about 400 million cubic meters last year. First quarter this year, PLN 1.5 billion. Speaking about exploration and production, we have the impact of macroeconomic results, the increase in prices and huge volume increases, particularly attached to this continental shelf. Results, 17+ billion PLN on sales. EBITDA 16.7 billion PLN. Please remember about one thing before we go into trading and storage. Settlements between the segments indicates the exploration and production being the beneficiary. There is the gas that is transferred at the market price, not the production price. The increase in prices is indicated in exploration and production. 15.3 operational EBITDA. You can see that exploration and production produces higher result compared to the total capital group results. Where did we generate the loss? In the conditions that we have, the storage and trading segment is in arrears because they buy at market prices and buys internally at the same level of prices. What needs attracting attention is the increase in transactional prices and energy stock exchange, this being very important information. 244% on spot prices. TGE 290 PLN per megawatt-hour, first Q this year. Let me return to the trading prices increase in the stock exchange 472 PLN increase on average, which indicates that the stock exchange of energy uses spot and day-ahead prices. This is what we trade in. Therefore, the storage and trading segment is not able to transfer these onto the end client because some transactions in the market are long-term perspective transactions. I'm going to present results and their impacts on the end results. What is also important, import volumes will be discussed in a moment. We are going to speak about the structure of import. The import volume, - 3%, which comes as no surprise. As I said, 2% increase in sales is attached to a one-off transaction with the government strategic reserves agency. In general, we sold 7% less of gas compared to the same period of last year. Let's look at the volumes. Blue is the color that needs your attention. 39% increase in sales in foreign markets in PST, as I told you, and Norwegian Continental Shelf production that was sold. You need to remember that before we establish a connection with Poland, the gas is sold in the market. All other distribution channels, retail market and energy stock exchange wholesale market, there are substantial declines. 19% in retail, 8% in wholesale. The trading pretty stable in the stock exchange. Two reasons, high prices that generate a lower demand because natural gas is pretty expensive at the moment. What we are going to show you, the temperature impact. The first half of this year was much warmer compared to previous years, and last year's winter was pretty cold. It was a record-breaking year. PSG distribution company, I believe you remember, ran on record-breaking results because they sold a lot at that time. There is huge sales and distribution. Speaking about financial results, revenues, PLN 78.8 million in this segment, including rising sales with macroeconomic elements being the most decisive ones, high prices. EBITDA - 827 billion PLN, despite the compensation system that is to equal the differences between the cost of gas purchase and gas sales to household and clients that are susceptible to economic changes. Despite this mandatory storage that was sold into the agency, this segment faced very difficult macroeconomic situation, which was pretty difficult for trading and storage company. We generated a loss - 3.8 billion PLN. Now, speaking about the distribution segment, the regulated segment, the average temperature 1.3 degrees centigrade increase, which is pretty much, and volumes 11%, 6.5 billion cubic meters that was distributed in the first part of 2022. There are two factors, lower demand plus higher temperature, and they influence the reduction of volumes. The revenues from distribution is at relatively stable level. There was the increase of tariff at 53.3% from January 1. Moving on to the results. Sales PLN 2.9 billion, EBITDA PLN 1.4 million. It is lower than the previous year, the first half of the previous year. It is not surprising because PSG last year, due to high temperatures, had record high results. The operational EBIT result at the level of PLN 770 million almost. That is a regulated segment, stable EBITDA. PSG company makes a significant well contribution in the first semester between PLN 1 billion and PLN 3 billion to the EBITDA group. The final segment of production. Here we know that in this segment we produce and sell heat, and we produce and sell electrical energy. We have significant increase of revenues, and let me tell you due to what. As far as the revenues from the heat sales, it went up by 27%, and the volumes did not really go very high as compared to the previous year. It's just 2%, but it is connected with the increased heat tariffs. The revenue from the sales of heat at the level of PLN 2 billion. Now talking about the sales of electrical energy, it is a significant growth, almost threefold, PLN 1.9 billion. There are two factors that overlap significantly higher production of electrical energy in the first half of 2022 as compared with the first half of 2021. 50% increase of volumes, and we know that in the wholesale market of electrical energy, these prices are also higher. The revenues from sales at the level of almost PLN 3.7 billion. EBITDA goes up PLN 690 million. We can't miss a fact that the operational result is negative. Here, unfortunately, there is significant impact exerted by the CO2 rights prices. Those rights and their impact, and it's depreciated in the result of this segment lead to the fact that although EBITDA is good, the operational result of Termika and this segment is negative. It's quite natural. With these gas prices that we have here, the net result in this segment of production is negative. EBITDA is still stable, however, at the net level, unfortunately, this segment is generating loss. This is the presentation of the first four segments. To sum it up, very good upstream results. Upstream has higher result than the whole capital group at the level of EBITDA. However, we also understand that it results slightly from the fact that in our own settlements, the exploration and production segment transfers to the trade and storage segment the produced gas at the market price and not production price. The upstream segment is beneficiary. However, the trade and storage segment is trying to catch up with the growing price of gas in the market. In this presentation, I would like to also refer to another very important factor. Which we did not talk about frequently during previous conferences outlining the results, because it was not that important. However, since autumn last year, this factor has been growing significance, and that's why we decided to focus on this in the separate slide. We must notice that the indebtedness of PGNiG Capital Group is growing, and the pace of that growth is relatively high. We were quite lucky that when the crisis started. You know what? For me, crisis did not start at the time of the beginning of the war in Ukraine or at the moment of cutting of gas supply by Gazprom on the 27th of April this year. For me, the crisis started at the time of a very rapid gas prices rise already in the second half of 2021. That is why in this slide you can see two elements. We wanted to show to you how rapidly gas price was changing. We are showing both the rise of price of gas, but also volatility. You can see that these peaks were unbelievable, that gas price on one day could go up by 30% and go down by 50% or the other way around. Went up by 50% and then go down by 30%. There are these two factors. On the one hand, it's the growth of prices, and on the other hand, it's also high volatility leading to uncertainty. The second factor I wanted to draw your attention to is that the forward contracts, the curves that are representative for the next three years are at much higher levels. What happened last autumn was very rapid peaks of price rises in subsequent months, and then forward contracts were going down. Now the market is forecasting that gas prices in the coming months and years will be also high. Our indebtedness as of the end of the first half of 2022 amounts to almost PLN 16 billion. When we compare it with the indebtedness a few quarters ago, at that time it was, like, 3-4 billion PLN, and our net debt was negative and buffer was really good. The cash flow was very, very good. The liquidity situation, well, it led to the consortium loan for PLN 10 billion available to us. What we were able to do, what we informed the market about, is the acquisition of financing in the commercial financing in the group for PLN 2.7 billion, and then in January, in February, then in June 2022. Recently we also announced the signature of two large credit agreements, and these are the first credit agreements concluded with PKO SA and BGK that are covered by the guarantees of the state treasury. That is why it is an important factor to know that these guarantees of the state treasury were introduced by the act of law this January. In order to secure the liquidity of the capital group and in order to secure energy situation of the country, to safeguard the energy security, the possibility of providing supplies and pay for them, we came to a decision to use these tools. Those two banks signed credit agreements with us, and it provides security for us in the coming periods if gas prices maintain at very high levels or if they even go higher. We don't know about that, and this is how we want to secure our financial liquidity as well as the possibility of acquisition and then paying for gas delivery. Now, after the two additional loans, the signature of the credit agreements happened. Well, now in the third quarter, we have PLN 25 billion, and these are the sources for financing. This is the available credit line for us. You can see our EBITDA. On the one hand, PLN 25 billion is a lot, but when we look at our EBITDA, you see that there is no risk that we will not be able to service this loan. Especially, we have to keep in mind that financial market is able to provide the liquidity for such a company or for such a capital group as ours. What I wanted to tell you is that we are really watching this very attentively, and we are working on the liquidity and financial stability to be maintained. Now the last thing that I wanted to tell you about, to recapitulate the results, because it really had a very important impact on what was happening this year. In that special law on gas, you can find very many important solutions for us. The solutions that we have been really using are the guarantees provided by the state treasury, are the most important ones, because we are using very many of the different solutions. These are the guarantees of the state treasury, and we use them at the level of PLN 10 billion. There is also the expanded catalog of the entities that are covered by the tariff protection. We know that by the end of last year, households were protected, and the catalog was expanded by schools, kindergartens, and other sensitive recipients. From that moment on, they have also been on that tariff, well, it goes up by 84%. At the same time, the price for them is also frozen until the end of the current year. There is the system of compensations also available. We sell gas at the price resulting from that frozen tariff, and we buy gas at market prices. The compensation goes to our bank accounts, but this is the compensation, as a matter of fact, for the end consumer. The impact on the result of the first half was PLN 2.9 billion, but to date, up to yesterday, I think about PLN 5.3 billion of compensations have already impacted the financial results of PGNiG and the Capital Group. This amount, the price of gas for the end user should be higher by PLN 5.3 billion. Since it was frozen at the level that I was referring to in the past, now we sold the gas at a lower price, cheaper, and then we were compensated for it. Well, there were many more solutions, of course. For example, the reduction of the deposits in the clearing chamber in the energy exchange. It is also a very important modification from our perspective. Many other solutions are here. I think that President Cieślik will be also talking about it, but I believe that these are the main factors that have been influencing the results of the first half of the year. If I may, I would like to add just one thing to what was presented in this slide. To the left, you can see that the guarantees of the State Treasury were increased from the amount of PLN 30 billion, and then the amendment is entering into force on the first of September, and this amount goes up to PLN 55 billion. As Mr. Wacławski said, those prices in gas markets are characterized by high volatility, and 30%-40% rises and then drops within one day. No one in the market knows what the maximum amount can be. That is why, thanks to the guarantees of the State Treasury to the amount of PLN 55 billion, we have the secured current capital in order to be able to overcome the crisis. Now moving on to key actions that have been undertaken under the conditions of the European economic crisis. In this slide, you can see the first date, which is the 27th of April, 2022. It is the day when Gazprom stopped supplying gas. As Mr. Wacławski said, the crisis did not start even at the time of the outbreak of the war in Ukraine. It started much, much earlier. As a matter of fact, it started in summer 2021 when the storage facilities of gas in Western Europe were not filled and Gazprom started to decrease the amount of volumes available, and then the prices started to go up very rapidly. This is when the crisis started. Very significant price rises were lasting until the end of the year, until December. In the first period of the year, at the beginning of the year, there was some relative stability, and quite a significant decline. The outbreak of the war in Ukraine again led to rapid growth. The next stage of the European economic crisis was the decree that was issued by the president of the Russian Federation, who ordered the introduction of payments made in Russian rubles. We observed the guidelines of the European Commission, and we made the decision that we would not be accepting the unilateral ultimatum. We did not sign the annex that was submitted by the Russian Federation, and the result of that, the gas supplies were stopped to Poland on the twenty-seventh of April, and then we were followed by Bulgaria. Then we can see the timetable of events. You can see along the time axis in May. May 2022, Gazprom also stops supplies to Finland and the Netherlands. In June 2022, Gazprom stops supplies to Denmark and France, and significantly reduces supplies of gas to Germany and Italy. In July, the maintenance work on the Nord Stream 1 begins, and the gas supply to Latvia is also cut off. It is explained by the supplier by sanctions and technical difficulties connected with the servicing of individual technical elements of that pipeline. What is our answer to all these events just mentioned? First of all, we are intensifying the LNG supplies, and the details will be presented by Mr. When the next slide is shown, but it's the main pillar thanks to which we can also provide for the energy security. Another element is the intensification of the production, especially on the Norwegian Continental Shelf. Since last year, after the acquisition of the assets of INEOS, we have had much greater options, possibilities. The deposits are greater. We have production resources and those which are already being operational, and we can see that the amount of volume which is produced is significantly higher. We also are filling in the underground storage facilities for gas, and we started to do this much earlier this year than earlier. We started to pump in gas already in the spring in order to be prepared for different scenarios, because it was very difficult for us to estimate what the future actions of Gazprom would be and what the situation in the European gas market was going to be, and we are also going to refer to the details later on. As far as LNG is concerned, we can also add another element to that. We started to pick up first methane ships in the LNG terminal in Klaipėda, where we had slots reserved, and we had a possibility of receiving LNG deliveries. Now I would like to give the floor to the president talking about the import structure. Thank you very much. As far as import is concerned, we noted the drop of imports by 3%. We said that gas consumption is lower. Speaking about eastern direction import, there was a decline of 41%. This is less than 2 billion cubic meters. As you can see, the pie chart, there's a comparison of import structure for the first part of 2021 juxtaposed with import structure of the first part of 2022. We know that until the twenty-seventh of April this year, import from Gazprom, from eastern direction continued. We acquired gas until the twenty-seventh of April. According to Yamal plan, it was supposed to be the end of the year, but as Mr. Cieślik said, the Putin's decree, the Russian ruble settlement and us not accepting the conditions, we were cut off from Russian gas supplies. Last year, 4.8 billion cubic meters for the period, 2.9 billion or so in the first part of 2022. Therefore, there was an increase of LNG import, 0.7 billion cubic meters by this is 3%, and we bought more gas from Europe. The increase from western and southern parts, 0.75 billion cubic meters, that was an increase by 50%. We need to remember that starting May, we have had GIPL pipeline available. This is the connection to Lithuania. We've got Klaipėda terminal, and we started supplies to Poland from Klaipėda terminal. These are LNG supplies. We had slots. There were the tankers that were brought in, and we provided Klaipėda terminal and the GIPL pipeline to Poland. Speaking about LNG, the key for equalizing the amounts, depleted from the eastern direction, in addition to European suppliers, that is the acquisition of gas in the European market, are also LNG suppliers. These suppliers have been intensified a lot. What needs to be said is the fact that Gaz-System is working hard on tightening the collaboration when it comes to these slots for tankers to enter ports. It's the eighteenth of August today. Until now, we have had 38 suppliers of LNG brought in, ordered by PGNiG Group. Four to Klaipėda, 34 suppliers in total to Świnoujście terminal. In the previous years, it was 23 in total. There is a substantial increase of LNG to the Klaipėda reloading station. As you can see, there is the difference of unit, million and billions. This is what we are discussing here because we have systems to transport it to the eastern side of Poland, which is very important. When we look at the whole picture, when we look at whole import volumes, not only do we speak about LNG, but also import of gas into Poland, this plays a less significant role. The 34% increase in volumes, 2.8 billion cubic meters last year at the same time, intensification starting from the onset of war in Ukraine. Let me focus on this intensification of LNG supplies, and Mr. President will be speaking about it in a moment, I believe. He'll be speaking about pumping in order to store in the storage facilities. We were not waiting for Russia to cut off the gas. The moment that the war started, we made the resolution to intensify gas pumping and storage, although it was a strange period of time to do so. By no means was it an easy decision for the corporation. When we have hindsight now, well, it would have been easier to make this decision, but we did make the decision much earlier. We use all regasification possibilities offered by Gaz-System, and Gaz-System tries to provide us with capacities that are used at most. We deliver energy through Klaipėda. We have chartered our own vessels, which is also very important because we may have gas available, but owing to the market situation, not only might we be short of the infrastructure in Poland and in Europe, but we also might be facing a problem related to gas transport. Therefore, we have chartered five vessels for the purpose. We need to remember that we keep developing our own fleet. The first tanker will become operational pretty soon this year. It was built in Korean shipyard. At the end of the day, we will have had eight vessels, and it happened well before the conflict onset. Therefore, we have reserved the slot in Korean shipyard. Some of the vessels are being built at the moment. Many of them will be built soon, but we have already booked their capacities. See, there is FSRU procedure, open season for Gdańsk. This is the procedure. We have started the process, and you have already been informed, and the market has already been informed. It was May this year, the beginning of May and the end of April. We signed an MoU with Sempra Infrastructure for long-term development of infrastructure, that is with a capacity of 4 billion cubic meters of natural gas starting 2027. Our activities were pretty intense in the LNG sector, believing that LNG might provide safety and security for our country in the months to come. Infrastructure, LNG infrastructure availability is a differentiating factor just for PGNiG with others in the region. These are our capacities that we have at hand. Now, ladies and gentlemen, yet another element that was shown two slides before, the production increase. As you can see it in this slide, look at the right-hand side of the slide. When we compare production of natural gas, this is billions of cubic meters, domestic and international, year-on-year comparison. There has been almost 50% increase. In the first part of 2022, we produced 2.34 billion cubic meters in total. In the first part of this year, it was 3.5 billion cubic meters. As it was highlighted on numerous occasions before, what is also very important is the fact that we intensified our activities when it comes to mergers and takeovers in Norwegian Continental Shelf. The forecast for 2022 as of today indicates annual production increased by 0.5 billion cubic meters, so that we can reach 3 billion cubic meters. Please remember, I want to supplement this information, 2017, 2020, the total production in the Norwegian Continental Shelf amounted to 0.5 billion, 1.5. This year, it was the result of INEOS purchase. This year, we are going to double last year's production and land in 3 billion cubic meters. We have the new deposits and the deposits that we buy and explore. This is the latest slide, as you can see on the screen, on the beamer. We also bought one Ørn deposit this year. As far as I remember, it's the word eagle in Norwegian. This is additional 1.5 billion cubic meters with the production starting in 2026. We do not forget that we want to intensify domestic production as much as it is possible. What you can see here is the expansion of crude oil and natural gas, Lubiatów Mine. Over 15 years, we are going to produce additional 3.5 billion cubic meters. There is the preparation process for Dębno crude oil and natural gas mine with an increase of 10% in this very deposit. What was communicated a week ago or two weeks ago, it related to discovery of a new deposit in Wielkopolska region of Poland. Yet another element that provides the response to the gas crisis, we have been consequent when it comes to storage policies. 2010-2021 period, PGNiG doubled the capacity of operational storage facilities from 1.7 - 3.2 billion cubic meters in total, which is a substantial element when it comes to energy safety and security. As you know, annual consumption is something like 20 billion cubic meters, remembering what Mr. Wacławski said. It provides the balance for the system and provides for safety and security of the country. What kind of projects were realized in the first part of the year? We started the expansion of the underground storage facility in Wierzchowice to increase it by 0.8 billion, 1.3 - 2.1. When we add 0.8 - 2.1 mentioned before, when this expansion finishes in 2025, we will have had 4 billion cubic meters of storage facility. Survey and design works are underway. Among the surveys, we can mention here the storage facility in Subcarpathia, which is the underground cavern in Strachocina, as well as the design works for the development of cavern storages and that is Mogilno and Kosakowo. As far as caverns are concerned, the design works are now conducted towards the possibility of storing there not only natural gas, but also other gases, biomethane and hydrogen. That is incredibly important, especially when we take into account the regulations of the European Union pertaining to energy transformation and renewable fuels. These are factors that in the future will allow us to carry out the transformation from natural gas to renewable gases. To the right, you can see the levels of filling of storage facilities in different periods of time. As Mr. Wacławski said before, usually those facilities are filled in later on during the year. However, the level of filling in February at the time of the aggression against Ukraine amounted to 57%. At the time of the disturbance of the Russian supplies of gas to Poland, at the time when we thought that it was very possible then that we were filling in the storage facilities and already on the 27th of April, which means before the period of standard filling in the storage facilities before summer, the storage facilities were filled in at the level of 57%, sorry, 77%. Today, they are filled in at the level of 99%. Concluding on this presentation, I wish to say a few words on the process of the merger with PKN Orlen, as well as the establishment of the multi-energy concern corporation. As you can see here from this slide, these are the main opportunities resulting from the merger, and they are mainly connected with security, independence, the possibilities for development, as well as diversification. As far as security is concerned, it's the stable position in crisis times and a safe energy transformation and the guarantee of energy security. The opportunities that are created by the merger is a stronger financial position, the growth of the investment potential, lower costs of functioning and operations, as well as higher competitiveness. At the same time, diversification allows for the diversified assets portfolio, starting with production, which is upstream, down to downstream, leads to the stable position to such an entity. We know that in oil and gas sector, size does matter. The size, well, the majority of the corporations working in that sector operate in oil and gas, and they have both exploration, production, assets, as well as the whole value chain up to the retail sale. The independence after the merger, the total capitalization is going to be at the level of about PLN 80 billion. This entity is already noticeable among the largest corporations in Europe, and now, it is giving it the sixteenth position on the list. Thanks to this, we are going to have a stronger negotiating position as well as a well-established position in the energy sector. The scope of the operation of the company will be refining, petrochemistry, energy production, heat generation, gas production, and, you know, the upstream production, and the PGNiG as a leader in this sector. Here it is just the repetition of the earlier headlines, which is synergy, complementarity as well, complete knowledge, experience, skills, as well as the continuation of cooperation. You must know that, among the three entities, which is Grupa Lotos, PKN Orlen, and PGNiG, there is a number of different initiatives of cooperation pertaining to upstream, and it started already back in 2004. For a number of years we have been conducting joint initiatives. Now, a few words about the schedule. As you know, the plan of a merger was assigned between the boards of the two companies on the 29th of July this year. Immediately after that event, the application to the National Court Register was submitted for the appointment of the chartered accountant. On August 12, the chartered accountant issued their opinion, and it is available on our Internet sites. According to the timetable, according to our plans, the process has been going on smoothly, and we plan the general assemblies of PKN Orlen should take place in September this year, and PGNiG in October this year. The estimated date of the merger would be the turn of October and November. Thank you. Thank you very much for the presentation. We can move on to Q&A. Can you please ask your question? Karol Bystra, Energetyka24 Portal. Karol Bystra. What about the Baltic Pipe? We have been recently hearing quite much about it. Do we know already how much of gas, what volume of gas will go through the pipeline, from October until December this year? Let me answer this question. Thank you very much. This question. Well, Baltic Pipe is a very important subject today because we know that the investment is going to be completed in the coming days. You know, this investment, this direction, is to provide for us energy security in the coming months. As far as the period you are talking about is concerned, which is Q4 2022, there are all signs indicating that first of all the pipeline is going to be operational. Secondly, the information we have is that the pipeline will not be operational at 100% of its capacity, but it is done in line with what was planned since the very beginning. It's going to be operational at the level of 38%, and we are going to fill it in fully. It's going to be about. Well, we estimate, depending on how much can technically go through the pipeline, it's going to be about 800 million cubic meters in Q4 2022. It's going to be our own gas produced by us, plus additional contracts, because we are still in the process of talking with the suppliers of gas from the Norwegian shelf. What we can say is that in Q4 this year, the capacity then in that pipeline, it's going to be 38%, and it's going to be fully filled in with gas. I have many questions. Andrzej Kublik, Gazeta Wyborcza. I do not know, I should ask all of them immediately or one by one? Okay, do it one by one. Going back to the Baltic Pipe, can you please inform everyone how much of gas have you contracted for the potential transportation via Baltic Pipe next year? Something you already have contracted, signed or foreseen when you take into account also own production, which is going to be at a level of about 3 billion this year. If I remember, next year it was going to go down to 2.5 billion. It was going to shrink a little bit. Let's say we can skip PLN 0.5 billion. From the outside, how much have you already contracted when you take also into account the delay of the agreement with Ørsted? This is the first question, immediately followed by the second question, how much of gas have you already contracted for the current year for the transportation with the link from Slovakia? Good. Thank you for your questions. Thank you for the first question, or first questions. As far as the amount of gas contracted for the next year, ladies and gentlemen, we will not give you that information now. We are now advanced in our talks with well, at least a few entities and on the shelf, and this is not the right moment to share that information publicly. What we can say is to calm down the public in Poland that we have gas supplies secured for the coming winter season, so there will be no shortage of gas for sure also in winter. Now we don't want, and we cannot reveal information pertaining to the contracted volumes for Baltic Pipe because we are now in the process of the negotiations. When we have any significant piece of news to inform, we will do that because we know that the whole market is awaiting this information and this is not the right moment. I can only add that the communication now would weaken our negotiating position, and we would be simply losing some of the arguments that we can use. They are up our sleeve. We are not going to comment on it. As the president said, we are going to inform you on the ongoing basis. As far as the second question is concerned, I would like to tell you that link up with Slovakia is concerned, now there is no official information yet as to when it is going to be initiated. The interconnector, when it is going to be initiated first, there will be options, and they will be followed by contracts, so this is the schedule of events. Well, it can't be. Thank you. More questions, Mr. Kublik? Oh, maybe anyone else would like to share the mic. Well, I certainly can ask questions also sitting, but I don't think it is very polite if I sit. Thank you very much, Director, for that. I would like to find out if the company reserved any storage facilities in Latvia. Do you intend to do this in connection with the operation of GIPL? There's just one storage facility in the Baltic States. Two other questions which I think will be interesting for all of us. Well, those who are clients of PGNiG, retail clients or customers. Are you talking with the government, encouraging the government about the extension of the compensations or the offsets for the next year? Because that ceiling was foreseen for the current year only. Do you want to apply for the extension of that also for the future years and at least for 2023? Finally, well, talking about those, you know, subsidies or the compensations, those amounts, are they taxed? Do you pay taxes on those amounts, or as the compensation it is tax-free? Let me start with the first question that you have asked. We have not earmarked any storage capacities in Latvia. What is our priority is to have domestic storage and increase of storage capacities internally. Because I was speaking about stability of supplies, this is what my question refers to. It's not a pipe, it's a vessel. Anything can happen in Danish Straits. If northern and eastern Poland, including Ostrołęka, are to be supplied, provided with any stability of gas supplies, this can be done through Latvia one. If you don't do that, when it comes to strategy, it comes as a surprise kind of for me. Speaking about tariffs that you were speaking about, yes, you're right in saying this has a huge impact on the situation today. We need to return to the question of compensation. It replenishes the difference between the purchase price and sell price for the end user. There are two options. First option, we talk to the president of the regulatory body about this. Looking at the prices increase, it should be substantial. The second, the lawmaker decides to prolong this act being in force for yet another year. Be it variation number one or variation number two chosen, this question should be neutral for us. It goes to the government whether they want to use this solution next year in order to protect the end user. Have you talked to the government? Last year we had this situation. We had the special act on gas. Separation and payoff for a number of years. You are the only company that used it. Now, we have the tariff solution. It was insufficient. The second gas act was created. With the reserve, mandatory reserve being taken over. We'd like to avoid the situation that there is an overnight transfer. Do you talk to the decision maker, including president of PL. I wouldn't go that far. Ladies and gentlemen, in our opinion, and I'm frank and sincere, this compensation system has stood the test of time. I know that 84% increase in tariff was not a small one. If we didn't have this compensation system, if we were to follow the market prices, the increase would have been bigger. The system is safe enough for us. We don't have any problems with payments. Clients are able to pay their dues. It is a very important factor. It's not a problem to increase gas prices by a few 100%. They need to pay for that. This is a safe system, in our opinion. We are not the decision makers in this question. From the point of view of the finances of PGNiG Group, the compensation system has been okay. Has stood the test of time. The support system in the gas crisis is not anything specific in Poland. Such activities have been taken up in other European Union member states, and this kind of assistance was provided also in Germany, France and Czechia. Different configurations, but still. This was not a regular situation in the market, so this kind of assistance to gas companies is important. Have you talked about it? Do you have any scenarios? If there was a compensation, PLN 10 billion limitation, would you be able to avoid these increases? You know, the forwards. Forward ones are pretty high. I cannot answer whether PLN 10 billion compensation is enough because we have in the background analysis. For certain, the prerequisite to keep the compensation systems are still there. There is the right direction. It comes as no surprise. We communicate it externally too, but we are not the decision makers, let me repeat it. Don't you believe that prices of gas should increase? Because if you've shown that the decline in the consumption the first part of the year, this is mainly industry year-on-year basis, so individual clients did not think about saving up. Nobody does anything like in Germany. I mean, the clients. I see your question. There is a tradition in Germany, but if somebody is silly, you can speak through the pockets. The compensation system is demobilizing. Everybody is wise enough. Everybody has got financial resources. 84% increase, which is quite a substantial increase. You might think that additional 40% would help. I don't know that. Math-wise, everything depends on forwards, curves and compensation. 84% increase was substantial. You settle it later on. You've got different shields, tax allowances. Let me finish it. CIT compensation, you were asking about. It's settled as the income is settled, because compensation is to accommodate for the change, the difference between selling and buying. So this is the income that compensates it, but it is for income tax. So there is a high price. It's a regular calculation. Two little things. We've got other people, so let's change. Rachela Zając, WysokieNapiecie.pl. I try to be brief. Continuation of colleague's question. I understand that there is this sequence of activities. You are analyzing the PLN 10 billion is enough, and how much you really need for to be compensated next year. This is what you're going to contact the government with, and after short negotiations, the government will produce a bill. Or do you have these analysis? We know that forward curves changed substantially over the last weeks. Yes, we carry out analysis, but I imagine, I'm sure that the government does the same. Really? Or don't? I think they do not do that. I'm not commenting it. We are people of greater faith. There should be, I believe. We'll be sharing this information with the government. Is there the sequence? We can tell it. When do you have analysis ready? It's not that they are created on a particular day. We carry on analysis for different scenarios of price paths. We have been in crisis situations starting autumn last year. At some point, you need to tell the government. There'll be the bill in September, and in October, you say, "You need to change it because we need to have more." You know it well. Looking at forwards, even a few days, we change the amount. I'm not trying to escape from the answer. I'm carrying out the analysis. There is an ongoing dialogue. I cannot tell you whether PLN 10 billion compensation would be enough or should be PLN 15 billion, because volatility is big enough that nobody knows it. In autumn this year, decisions will be made, and we'll be sharing our analysis. Energy safety is included in our bylaws. This is one of our duties. If there are questions from the government side, we'll be answering these questions. We can relate it. Increasing compensations, the evaluated ones. What is the valuation that should be in the act. We have the act as it is. We are not the legislative body, so it's hard to comment it. From your point of view, is it better to have fixed index or valuation, index, so that it wouldn't have to be changed every month? It doesn't change every month, as Mr. Wacławski shown. With these gas prices, we have safety. There is a substantial change, but I cannot see the necessity to introduce the changes that you are speaking about. Thank you very much for explanation. One more question. I'd like to ask about Żerań gas plants. It's not used owing to gas and coal parity in prices. The second, Żerań coal-fired one. What is CHP Żerań contract? Where is the coal brought from, if you could be precise? How much of domestic, how much of import, and if import, then from where? Thank you very much for this question. It's a pretty technical question. We may not be able to answer fully here. We may return to you via email after the conference. PGNiG Termika, we are in constant contact when it comes to coal monitoring. We do it on daily basis or weekly basis. We get the reports. Detailed information will be presented at a later date. As of today, I can say that stock of coal is above what is stipulated in the regulations. According to my best knowledge, the report status indicates that most of the coal is domestic production coal. We don't have any reports speaking about any problems. Temperature, the need, the demands from the grid, the company does not file any problems. Żerań, I don't know whether I understand your question. It keeps working. We'll return to it. Are there any questions? Bartłomiej Sawicki, Wysokie Napięcie. I'd like to ask about tariffs and compensations. As I understand, the differences that are compensated are compared to months forward prices. Or is it a year forward compensation? The second question, in the same context, do we have gas contracting for this receivable for tariffs for next years? Should we calculate them by forward, as it happens in electricity? Or will we have to do it on monthly spot prices? Thank you very much. For households. Households There's the tariffication. Whether there are tariffs? The compensation is the difference. Compensation is the difference between the actual purchase price and sell price. Um. We are speaking about households. The actual price, I'm not a specialist, but my understanding is that it's a mix. PGNiG has got on time spots to extra purchase. It's a mix. PGNiG contracts gas ahead. It's not spot bought. The price, that is the result in of contracting. There is the gas purchase price. Details are included in this act. There is the mechanism that regulates it. This is PGNiG OD. Email us, we'll explain the details. Mr. Marszalkowski. Uh. Marszalkowski. Oh, I couldn't see you. It's not compensation. Very important when it comes to PGNiG collaboration with Ukraine. At the beginning of February, you said that the first drill would be made in order to start exploration for gas in Lviv region. What is the collaboration when it comes to this gas exploration, to this context during war, have you suspended it? Does the work continue? I can answer it, editor. This is Carpathian Gas Exploration. There is Bliche-Volytsko-Uherske, near Przemyśl, just behind the border. A day before the war outbreak, the lot was ready for drills. There were environmental questions. We planned to start the drills this year, but the war situation has made the situation even more complex. The department analyzes the situation. I don't have clear answer when we're going to return to that, but this is not a project that we have given up on. We are open to this direction. Everything is ready to start the drill. We are analyzing the situation to see how safe it is, whether we can start drilling. Wojciech Jakóbik, Polish Press Agency. I hope it will be short. When, and what is the price, when you want to get rid of, Gas Storage Poland? The second thing, asset contract from Qatar. The supplies were supposed to be brought in next year. We won't have gas from Qatar next year. Can you explain us what is the settlement of an asset for this contract? Will they supply gas on time or later? Or will it be a financial one? Let me start by answering to first. Gas Storage Poland, the sell-off, this is regulated by UOKiK. This is the only measure for this conditional decision for merger. According to the decision, the sale is going to happen within 12 months after merger, so the decision will be made by PKN Orlen. Additionally, UOKiK president's decision. There is a number of conditions for the buyer of Gas Storage Poland. So for example, knowledge, competencies, safety guarantees when it comes to national energy, safety and security. There is a number of safety triggers, first and foremost, who the PKN Orlen management talks to, and the decision to select and conditional contract that needs to be accepted by UOKiK president. There is 12 months after merger. Speaking about Ørsted, it is a trade secret, so I cannot reveal this information. We are nearing the end, so be brief. Karol Bystra, Energetyka24. Let me return to Baltic Pipe question, the first question that we had. I'd like to learn about the difference in narratives of government and the narrative of the company. A month ago, Prime Minister Mateusz Morawiecki announced that we have contracted 5 billion cubic meters of gas by the end of the year through Baltic Pipe. Now, president says there'll be 800 million. Where does this difference direct to? By principle, we do not comment Prime Minister's utterances and representatives of the government. Right. The Prime Minister said that with his knowledge acquired through PGNiG specialists. Did the Prime Minister make up the data? I can repeat, we do not comment government's representatives' opinions or statements, especially press publications we don't know the details of. It was a press conference. It was not a publication. We received it through the media. We were not in the press conference. Can we be sure of PLN 10 billion contracted for next year as announced? Yeah, that was the answer in this question. Nothing has changed over the 10 minutes time. Thank you. Andrzej Kublik, to finish off, three things. Let's stick to compensations. Be brief. Because we have what we have in the market in Europe. There is even a higher increase of natural gas. Many things are unclear. In your opinion, PLN 10 billion this year is enough this year. We were speaking about shifts, but the limitation that was set for this year, is it enough? The company might have ongoing assessments. This is one thing. The second thing, who will apply, who will submit a motion when it comes to next year tariffs? Who will announce them if PGNiG is liquidated and there's a fusion with Orlen. PGNiG or Orlen. PGNiG liquidation next year. How about contract of PGNiG and Orlen? This is the biggest client. Orlen is the biggest client for PGNiG. How about this contract? How will you set up prices? Will Orlen set up prices for Anwil and ORLEN Petrochemia? Mr. Cieślik is a specialist associated with Orlen. He'll know these things. I would explain the difference between liquidation and merger. A merger between PKN Orlen and PGNiG is a merger by takeover. Article 492 §1 of the Commercial Companies Code. This is a merger by takeover. This is not a liquidation. The first thing. The second, this is universal succession. All duties and responsibilities of present body is taken over by the company that is responsible for the merger. For clear recording, does that mean that Orlen will be paying itself for gas as much they have paid as PGNiG? This is universal succession. Don't use legal terms and names. I'm speaking about concrete things. This is the concrete answer. All duties and rights of the company that is taken over is assumed by the company that takes the other one over. You also asked about tariff application. PGNiG OD will be Orlen company, so we'll submit this. It has been the case until now. The retail of PGNiG has been dealing with this. Speaking of compensation, I understand your question. We carry out ongoing analysis, but there are two factors. Price one, forward curves, and volume one. If the decision is made, the DR stipulating protection for sensitive clients and individual clients will be prolonged by one year. The lawmaker will have to set up the limit with a safety trigger, a safety day, according to ongoing price. I understand it. Will it be PLN 10 billion, PLN 15 billion, or PLN 20 billion? I cannot quote the price. I'm sorry. Questions are not audible in the interpreter's booth. The limitation bearing in mind higher increase, will it be sufficient? We've got exchange volatility, which is highly impacted by the temperature in November and December. That I don't know. It might be sufficient. Okay, prices will go 500 EUR megawatt hour, a cold winter. I cannot give you this information. It seems December will be the key when it comes to temperatures. Question not audible in the booth. Orlen PGNiG contract. From the economic point of view rather than legal. This is the universal succession merger. The company that takes over takes in the responsibilities, so the contract vanishes because you cannot have a contract with your own company. Anti-monopoly. It's strange. We'll be thinking what the European Commission does. It was contacted by the EU, but it will be long and intense. I do not want to invite you for discussion, but not in a conference. Open discussions. Thank you very much for being here. Presidents are at your disposal, just like our experts. They are here to guide you, provide information. Thank you very much. Join us at consecutive meetings. Thank you very much. Thank you. Thank you.