Good afternoon, ladies and gents, and welcome to our conference call for discussing the preliminary results recorded by Romgaz Group in 2022. After introducing the speakers, Mr. Răzvan Popescu, Chief Executive Officer, will make an opening speech. Therefore, the Q&A session will take place. We would like to apologize for our some technical problems. Hi. Good afternoon, ladies and gentlemen, and thank you for joining our conference call to discuss the preliminary results recorded by the Romgaz Group in 2022. Yesterday, we published the preliminary annual consolidated report, which includes a brief presentation of our performance recorded last year. An overall presentation of our group is available on our website in the investor section. I would like to take this opportunity to address certain aspects regarding the market context of 2022, which impacted our group's performance. According to our estimates, total natural gas consumption in Romania decreased by 16% year-on-year, with gas imports reaching 27% weight in total consumption. In the last quarter, gas consumption declined by almost 22% year-on-year, while imports decreased their weight according to our estimates. It is worth noting that compared to other European countries, gas consumption in Romania is heavily covered by domestic output. Monthly average of wholesale gas prices on the Romanian Commodities Exchange spot, forward, and balancing market surged over 3.2 times in 2022 compared to 2021. In the last quarter of 2022, gas prices on this exchange reversed their upward trend and adjusted downwards by around 35% compared to the third quarter. On the Central European Gas Hub, the average monthly reference price also advanced over 3 times year-on-year, according to data provided by the National Agency for Mineral Resources. Also, on this market, in the last quarter, prices adjusted on a downward slope compared to the previous quarter. Regarding the fiscal environment of 2022, Romgaz activities were impacted mainly by Government's Emergency Ordinance No. 27, issued on March 22, amended several times during the year. The main provision applicable to gas producers include regular gas selling prices of RON 150 per MWh for the gas sold to households starting April 1st, 2022, and up until March 31st, 2025. Regulated gas selling prices of RON 250 per MWh for the gas sold to thermal plants to produce thermal energy for households during April, August 2022, and RON 150 per MWh starting September 1st, 2022 to ensure gas consumption of household during the cold months until end of March 2025. Exemption of windfall profit tax for revenues from the gas sold at regular prices and computation of gas royalties based on the regulated prices instead of tag prices. The above-mentioned ordinance also states that gas suppliers have capped selling prices for some categories and end consumers maximum RON 310 per megawatt hour for households and maximum RON 370 per megawatt hour for thermal plants and industrial clients with a consumption below 50,000 megawatt hours in the previous year. For the energy market, the ordinance also imposed pricing levels and an 80% windfall profit tax for energy producers during first of April to end of August 2022 for prices exceeding RON 450 per megawatt hour. Just to make an exercise, certain deductions do apply. Starting first of September 2022, energy producers which started operations before this date, energy traders and gas traders are required to contribute to the Energy Transition Fund to full amount exceeding 450 LEI per megawatt hour. Here also, certain deductions apply. Gas storage is also mandatory for gas suppliers and thermal plants to secure 30% of household consumption starting April 2022. In addition, the Emergency Ordinance No. 186/2022, issued in December 2022 in line with EU legislation, imposed for the 2022 and 2023 fiscal years a 60% solidarity contribution applied to the annual taxable profit that exceeds by 20% the average value of taxable profits recorded between 2018 and 2021 included. Regarding this operational and financial performance achieved by the Romgaz Group in 2022, we can mention the following aspects. We recorded a natural gas production of 4.94 billion metric cubes, 1.8% lower compared to 2021, but within the 2.5% limit of the average annual decline assumed through the development strategy by Romgaz. We continued our measures to support the development of our onshore production, namely the optimization of wells operation, extension of rehabilitation projects in the main matures reservoirs, workover and recompletion operations at inactive or low flow level wells, and completion of investments to extend production infrastructure and connect new wells to this infrastructure. In addition of this, we performed workover activities for 215 wells, finalized nine surface facilities and one production well, while other are in different execution stages. In the second quarter of the last year, we put into operation the gas dehydration plant in Coșereni, an investment of 31 million RON. At the end of June, DeGolyer and MacNaughton completed the external audit for our gas portfolio. The audit states that total gas reserves of 65.9 BCM and total gas resources of 55.9 BCM as of 31st of December, 2021. We continue to improve our significant position already held on the gas market, reaching 49% of total supplies in Romania and 68% of consumption cover from domestic gas. Total gas supplies, including those to the Iernut Power Station, declined by 1.7% year-on-year as a result of lower volume of gas acquired and resold. Total revenues from gas sold were at a record high, totaling RON 11.33 billion, over 2.2 times higher year-on-year. Due to the market environment, which led to a significant increase in our average realized gas selling price for the first nine months, especially. The electricity segment had a strong contribution with record high revenues of RON 1.33 billion, over four times higher year-on-year due to elevated prices and a higher production of 74% year-on-year. Revenues from storage services also soared by 81% year-on-year to RON 469 million due to higher capacity reservation and injection services. Overall, in 2022, we reported total revenues of RON 13.38 billion, almost 2.3 times higher year-on-year and at a historical record. Regarding expenses, we can underline the extremely high level of taxes and contribution for the last year. windfall profit tax increased almost four times to RON 4.9 billion. Total royalties were over 2.2 higher at RON 1.67 billion. windfall profit tax from electricity, respectively, the contribution to the Energy Transition Fund stood at RON 4.4 million. Also the solidarity contribution that amounts to almost RON 1 billion. Together, these four taxes reached a substantial amount of RON 8 billion at more than 4 times elevated compared to the previous year. Also, the expenses with these four taxes accounted for more than 60% of total revenues in 2022 compared to only 34% in the previous year. Bottom line, net profit was at a record high of RON 2.54 billion, 33% higher compared to 2021. Profitability rates continued to be robust, although impacted by high tax expenses. The EBITDA margin of 26.3, EBIT margin at 22.2 and NP margin at 9%. If we analyze strictly the fourth quarter of 2022, we can know the following main results. Gas production declined by 5.6% year-on-year. Recorded an increase of 6.5% compared to Q3. Total revenues were at a quarterly record high of RON 2.57 billion, up 9% year-on-year. Royalties and windfall tax diminished almost 4 times year-on-year due to the measure enforced to limit and even decrease the gas prices in the market. Net profit was reported at RON 307 million, impacted by the solidarity contribution of RON 1 billion that is due for the entire fiscal year, was recorded entirely in the last quarter as it was introduced in late December. Profitability rates remained at favorable levels. An EBITDA margin of 24.5% and an NP profit margin at 11.9%. On the CapEx side, in 2022, Romgaz Group invested a total amount of RON 5.6 billion, which also includes the acquisition of 50% of the Neptun Deep project. We want to remind the market that on 1st of August of 2022, Romgaz finalized the transaction with ExxonMobil for the acquisition of all shares issued by ExxonMobil Exploration and Production Romania Limited, which owns 50% of the rights and obligations related to the Neptun Deep project. We partially financed the acquisition through a credit facility of EUR 325 million that was signed on March 30th. This important achievement is aligned with the development strategy for 2021 through 2030 of Romgaz, which includes the development of our onshore and offshore hydrocarbon resources and resource portfolio, focusing on resilient hydrocarbons and mitigating the effects of climate change. As regards the perspectives for this year, the 2023 budget proposal was endorsed by our shareholders meeting held on the February 20th. For 2023, the consolidated guidelines include a profit before tax of RON 2.41 billion and total investments of over RON 2.2 billion. The 2023 CapEx program is mostly based on projects aiming to increase the reserves and resource portfolio and offset the natural decline of gas production, as well as on electricity generation. With this, I would like to close our presentation, thank you for your attention. Thank you for the presentation. The line is now open to take the questions. I would like to remind you that you have two options to address the questions. Either you raise your hand and turn on your microphone or write a question. We received the first question from Irina Răilean. Could you detail the reason for such a high income tax expense in the fourth quarter? Although the results for the fourth quarter of 2022 was only RON 300 million, we want to remind that the contribution tax is a non-deductible expense. That explains the high income tax. The next question from Irina Răilean. What is the financing mix you envisage for Neptun Deep? How much additional debt do you expect to take in to finance this project? We're looking at having a mix of debt. Debt that includes also a credit line with a banking consortium and also the issuance of bonds to cover the high CapEx peaks that we will have during 2025 and 2026. We are talking about, in our estimates, looking to 1, and almost EUR 1 billion-EUR 1.2 billion. Another question from Iuliana Ciopraga. Can you please disclose our production estimate for 2023? How much do you expect to sell on the regulated market in 2023? Thank you. We're looking to keep production in line with the strategy with no more than a 2.5% decrease. Also, we have not yet received from the OTS the regulated situation regarding the gas that Romgaz has to supply to the final end consumer and to the thermal plants for the next gas year. As regards the sales to the regulated market for the first quarter, 89% from the deliveries are according to the Government Emergency Ordinance 27. As from April 1st, we are expecting for the transmission system operator to distribute the quantities. Another written question from Mr. Tamás Flecher. What was the proportion of eligible customers, households, municipality heating companies from the total sales in the fourth quarter? In the last quarter, I think it had the higher proportion, around 90%, nine zero, having been shipped on the regulated, at regulated levels and on the regulated market. We would like to add that for households, about 74%, and for heat producers, 16%. Another written question from Mr. István Sárkány. Some companies started to contest in the courts of justice the solidarity tax. Is there any chance, in case they succeed, for Romgaz to take similar steps? No, it is not our business what other companies are doing because they have to look at their own mix of gas and their own percentages related to the wording of the ordinance. Romgaz has analyzed the ordinance in detail, also using our external advisors and how it is written at this point in time. As you can see in the budgeting, we have budgeted the solidarity tax as applicable to Romgaz. We have a raised hand from Iuliana Ciopraga. You can now address your question. Ms. Iuliana Ciopraga, please activate your microphone. Hi. Good afternoon. A question from me regarding the budget that you've made public some months ago, mostly about the operating costs and increase in operating costs that we're seeing there. Can you please clarify what is triggering these increases? Actually a bit more color on the budget would be highly appreciated. Thank you. Secondly, of course, if you can discuss a bit the dividend and what you expect to pay out of 2022 net profit and 2023 as well. Sure. Regarding the operational cost and the hike in operational cost, we have envisaged larger than, you know, than other years intervention for our mature wells. We have budgeted more operation, more workover operation. The drilling with our own internal services of a couple wells, and given also, taken into account the high inflation and rising costs, given that we see a lot of bottlenecks in the supply chain and in the, in the part of demand for this type of parts. We have seen very high prices. We are looking at higher prices. We are also looking at consumption at a higher consumption and higher volume due to the advanced workover and optimization operations that we are looking to implement. Given and taken into account the dividend policy, we are hoping and looking at having a minimum dividend of 50% that is required by the Government Ordinance No. 64 to be taken out of Romgaz coffers, given the fact that we are also paying the solidarity tax. We received another written question from Iulian Andrei. On the power market, can you please disclose what are your expected sales on the centralized power acquisition market at the regulated price of RON 450 per megawatt per hour? We expect that, the percentage of the production to be sold at RON 450 per megawatt hour to be 50% for 2023. Another written question from Cristian Tătar. Can you give more details on Iernut Power Station progress? Yes. We are in the final steps of the negotiation regarding restarting of the plant. We will inform the market shortly, taken into account, that we are looking to finalize the negotiations in a very short period of time. The market will be informed accordingly regarding to both the way that it's going to be restarted and the total amount. Question from Laura Simion. The profit from 2023 will be compared to 2018, 2021 average or 2019, 2022? The average will remain the same. It will be the average between 2018 and 2021. Following question from Iulian Andrei. Regarding dividends, do you maintain your expectations of a 50% payout in the light of today's discussions? Your proposal will be more likely to reach 90%. No, our proposition is 50% of a payout dividend, given the high degree of investments that Romgaz has to implement in the coming years. Next question from Irina Răilean. What is the standalone individual net profit for Romgaz? Is the RON 2.38 billion indicated in the budget for 2022 preliminary still a good indication? The 2022 net profit is estimated at LEI 2.5 billion. If there are any other questions or hands raised. Yeah, we noticed Ms. Daniela Mîndru. Miss Daniela Mîndru, if you have a question, please activate your microphone. I think you can hear now me. Yes. Okay. So I have several questions. The first one, please disclose the quantities sold the last year for households and thermal power producers. I'm referring to the total quantities not regulated. In order for us to make an estimation for this year. The second question regards, because I was not, I didn't understand very well, I think, what you estimate as investments for Neptun Deep until the exploration starting in 2027. If you have some investments planned for this year in Neptun Deep. The third question refers to Iernut Power Plant. What would be the estimated production for this year? Thank you. Related to total quantity sold annually, it would be according to the government emergency ordinance, 16 terawatt. For households, 14 terawatt. For thermal power plant producers, 2.6 terawatt. According to the GRP program, it would be 10.8 terawatt-hour. On the commodities exchange market, it would be 616.9. Bilateral contracts with thermal heat producers, it would be around 22 terawatt, out of which 11.7 terawatt is for thermal heat producers. Sorry, I didn't understand anything. Please repeat. My question was, last year, how much did you sell on for households and thermal power producers? Just to give you an idea, if you're trying to extrapolate what happened last year to this year, I don't think it's going to work because the GEO-27 was introduced starting to the 1st of April and started with an injection period. So when we are looking at the entire production for last year, it's around 33% sold at regulated prices over the whole year. But we have not yet received the allocation for 1st of April to 31st of March 2024 yet from the OTS, if that answers your question. That means, for example, because my extrapolation, okay, if you sold last year 35%, to household and thermal producer for non-households, probably the same quantity because these are your clients will be allocated to you. Not necessarily. Not necessarily. Not necessarily. Not necessarily, no. No. Okay. That's why I asked where you are trying to get with the question so we could, so we could clear it. It's not necessarily because first of all, you had, three months, almost four months in which you had a free market on which, to sell, then the allocations came. It should be higher if you ask me. Okay, good. Looking at the Neptun Deep investment, yes, we have budgeted for 2023 almost EUR 150 million in investments in Neptun Deep. We are waiting for the operator and partner to take FID. Romgaz, as I have stated, has taken FID the moment we decided to acquire Exxon's stake. For us, the FID is implicit. We're looking at total investments up to 2026, 2027 in this perimeter of around EUR 2 billion, up to EUR 2 billion on our end. Romgaz's investment in the project. Yeah. Sorry here for interruption. I just wanted to compare your estimates with Petrom estimates. You are at the same level. Yeah, exactly. We because the operator with the non-operator through the operation, through the operating committee, has this set up together. Of course, they have to be similar given just a few difference of estimations, but they should always be similar in terms of costs throughout the project. Here, sorry for interrupting you again. Do you have an estimate for net present value of the Neptun project? We cannot share this type of information. Okay, good. The same as Petrom. The next then, the last question was that regarding the power production of this year. Estimate. It will be almost in line with the production that we realized in 2022. We will have 2 months in which we will do the maintenance in April and October. Our estimate is that our production will reach the same levels as in 2022. We don't estimate that the finalizing the new power plant will affect the production in this year. Once we will have more information, we will communicate with you, with the investors. Okay, thank you. Thank you a lot. We have another written question from Adam Milewicz. Is it good assumption that you sell 75% of your production at regulated gas price of RON 150 per megawatt-hour in 2023? Another question, do you expect FID on Neptun Deep in mid-2023 or you expect any delays? Well, we cannot give the assumption because, we have made our own assumption regarding this, and we have budgeted it. We have not, as I stated before, we have not yet received the quantities that we have to supply, under the premises of the ordinance. Regarding the FID, we do not expect any delay, and we have budgeted in accordance with having FID mid-2023. We view no delays at this point in time. Mr. Tamás Flecher sent another written question for clarifications. Can you please repeat your production target for 2023, please? Thank you. Our production target is in line with our multi-annual strategy, but keeping it in check at a maximum 2.5 decline in production. Our aim is to keep production as close as to the 4.9 billion cubic meters per year. If there are any other questions, please. Miss Daniela Mîndru, open your microphone. Yeah, I have a question. I don't know if it's the same situation for you as for Petrom. When you are selling gas for power plant, you are selling it at RON 100 per megawatt or at the market price? it's regulated by the ordinance. Mm-hmm. It's at 100 RON per megawatt-hour. Okay. Okay, thank you. Starting with September, of course. Okay, thank you. Thank you. Any other questions, please? If there are no further questions, we will conclude this conference call. Thank you very much for your questions. If you need further information, please contact our investor relations team. The conference is now concluded. On behalf of Romgaz team, thank you for attending today's conference call. Bye.