Good afternoon, ladies and gentlemen, and welcome to our conference call for discussing the results recorded by Romgaz Group in the first nine months of 2024. After introducing the speakers, Mr. Răzvan Popescu, Chief Executive Officer, will make an opening speech. Thereafter, the Q&A session will take place. Please be advised that this conference is being recorded for internal purposes. On behalf of the company, the following speakers attend this conference: Mr. Răzvan Popescu, Chief Executive Officer; Ms. Gabriela Trânbiţaş, Chief Financial Officer; Mr. Adrian Noaghiu, from Production Department; Ms. Cordelia Sardan, Head of Prices; and our Investor Relations Department. Now, I would like to give the floor over to Mr. Răzvan Popescu, who will open the conference call with an opening speech. Good afternoon, ladies and gentlemen, and thank you for joining our conference call to discuss the results recorded by the Romgaz Group in the first nine months of 2024. Today, we publish the quarterly report and the consolidated, condensed interim financial statements for the first nine months and the third quarter of 2024, which present our economic and financial achievements in the period. Also, an updated presentation of the group is available on our website in the Investors section. I would like to start with some aspects of the gas market context in the first nine months compared to the same period of last year. According to our assessment, natural gas consumption in Romania increased marginally by around 2%, with imported gas volumes higher by almost 31% year-on-year, reaching a 20% weight in the domestic consumption in this period. On the Central European Gas Hub, the average reference price declined by 35%, according to the data provided by the National Agency for Mineral Resources. The Romanian Commodities Exchange continues to be impacted by the current regulations in force. The wholesale average price has also reached a significant drop. Regarding the fiscal framework in the energy sector in Romania, Romgaz activities continue to be influenced mainly by the Government Emergency Ordinance No. 27, effective starting 1 April 2022, subject to subsequent amendments. We remind below the main legal provisions applicable to gas and energy producers. Starting 1 April 2024 and up until the end of 2024, the regulated gas selling price is 120 RON per MWh for the gas sold to households, suppliers of household heat producers, and their suppliers for the production of thermal energy for households, according to this decree. For comparison reasons, please recall that during 2023 until up to 31 March 2024, the regulated gas prices stood at RON 150 per MWh. Gas producers are exempt from the Windfall Profit Tax for the gas sold at these regulated prices up until the end of March 2025. Also, gas royalties are computed based on these regulated prices instead of the CEGH reference prices until the end of 2024. Energy producers, which started operations before September 2022, are required to contribute to the Energy Transition Fund for the energy sold at prices over RON 400 per MWh. During 1 April 2024 up to 31 March 2025, the reference price was RON 450 per MWh until 31 March 2024. Also, the Order No. 91, published October 2023, increased gas royalties with approximately 1.5 percentage points and the gas storage royalties with 0.5 percentage points. Law No. 228, issued in July 2024 to approve this OUG, finally brought more clarifications regarding the applicability of the new royalty rates. As such, the new higher royalty rates do not apply to existing concession agreements that Romgaz has in place. In addition, for comparison reasons, we remind that the solidarity contribution introduced by OUG No. 186 in 2022 was due only for the fiscal years 2022 and 2023. We continue this presentation by highlighting the operational and financial performance recorded by the Romgaz Group in the first nine months of 2024. Natural gas production reached 3.67 BCM, higher by 4.5% compared to the same period of last year. The significant performance recorded in the first nine months resulted from the completion of investments for the development of production infrastructure and connection of new wells. This allowed us to stream into production seven new wells with an initial daily flow of over 400,000 CBM. Reactivation of an important number of wells through specific investment works with a total daily flow of over 1.5 million CBM. Optimization of exploitation of high potential wells and the continuous rehabilitation projects of many mature gas fields aiming to maximize production and the recovery factor. Also, we finalized seven surface facilities and performed the recomposition, reactivation, and repairs for a number of 158 wells. I would like to point out that Caragele Commercial Field had an important contribution to this nine-month performance by drilling and streaming into production one development well and reactivating two other wells, and also optimizing production at the well that is operating in the deep area. Regarding our gas portfolio, we announced in August that the independent auditor of our onshore reserves and contingent resources was completed, revealing a strong portfolio of gas reserves and resources. Compared to the full year of 2023, we improved even more our position held on the Romanian gas market. Our market share climbed to almost 52% of total consumption in Romania and 64% of the consumption covered from domestically produced gas. Regarding the gas sale to third parties, volumes declined by 4.5% year-on-year, mainly due to higher-owned volumes injected into underground storages and lower-owned volumes withdrawn from storages. Total revenues from gas sold amounted to RON 4.65 billion, 21% lower year-on-year, mainly as a result of the downward average gas selling price in 2024 compared to last year. Revenues from storage services adjusted by 7% year-on-year to RON 396 million, mainly due to lower revenues from injection and capacity booking services, while withdrawal services recorded an increase. Revenues from electricity added RON 307 million, higher 6.5% year-on-year on production, higher by almost 14% compared to last year. Overall, in the nine months of this year, we reported total revenues of RON 5.63 billion, with 17% lower than last year. On the expenses side, we can point out that windfall profit tax and gas royalties accounted for RON 430 million and respectively RON 791 million. Altogether, all the main taxes, including the duty to the Energy Transition Fund, recorded a 3.6% increase year-on-year and is representing a total expense of RON 1.24 billion. Bottom line, net profit amounted to RON 2.27 billion, up 4.8% year-on-year and at historically high nine-month value. As already mentioned, the Solidarity Contribution is not due anymore. All profitability rates were substantial in the first nine months. Net profit margin rose to a historically high nine-month value of 40.4%, and both EBITDA and EBIT margins continue to be robust at 53.8% and 46.2% respectively. For the Q3 alone, we point out the following main achievements: gas production higher by 4.7% year-on-year due to steady investment, rehabilitation, and optimization program, revenues of RON 1.73 billion, net profit of RON 436 million at a 10% decline year-on-year. Regarding the CapEx, Romgaz Group invested a consolidated amount of RON 2.16 billion in the first nine months of 2024. Of this amount, 1.54 billion RON represented the investment of Romgaz Black Sea Limited and RON 593 million the investment of Romgaz alone. These were more mainly in exploration, exploitation, and production modernization. Also, RON 22 million went to the CapEx of the UGS subsidiary Depogaz. With respect to the Neptun Deep project, it's presently in the execution phase and progressing in line with the work program. In May, the cut of first steel for the platform topside started at the Saipem facility in Indonesia, being an important milestone for the project. In early October, the operator announced the start of the construction works for the steel jacket, the platform support structure at the Saipem construction site in Italy. The platform is expected to be installed in 2026, followed by the hookup, commissioning, and integration of the subsea production system and pipelines. With these activities, Romgaz and its partner are on track to spud the first well in 2025 and safely deliver the first gas from Neptun Deep in 2027. The project remains within the up to EUR 4 billion guidance for total investment in the development phase. Another strategic objective is the new combined cycle gas turbine power plant in Iernut, for which we are performing the remaining contracted works. The total progress of the investment on this turnkey project at the end of October is at 95%, and the total progress of the investment project related to the new EPC contract that was signed last year was 70.6%. It is important to mention that taking into account that most of the equipment were installed during the initial works contract, approximately four years ago, and did not work since then, complex tests will have to be performed in order to ensure the putting into operation of the plant will be done in the best conditions and without any risk for the facilities or the people working at the site. 72-hour operational tests and endurance tests for the plant will be performed during April and May 2025. Given the weaker-than-expected mobilization of the entrepreneur, the new deadline to finalize the entire remaining works and put into production the entire capacity of the plant will be June 2025. Considering the difficult situation in the national energy system, it is desired to maintain the operation of the energy block number five of the old plant without troubling the connection works for the new combined cycle plant to the grid. The operation of the block will be ensured during the difficult winter period. An important achievement that we did in 2024 was the successful subscription of the EUR 500 million inaugural bond issue under the new EMTN program that we established. The bond is rated BBB- by Fitch Ratings. The subscription process took place on September 30th on the international markets. The issue offers an annual coupon of 4.75 and matures in five years on October 7, 2029. The inaugural issue registered the record number of international investors and subscribers, and the demand in the bookbuilding process exceeded EUR 5 billion, which marks a first for the issuance of corporate bonds in Romania. The success indicates the trust that investors have put in our development plans and do confirm our position as a strategic player in the regional energy sector. We would like also to remind investors that in May this year, Fitch assigned Romgaz an investment credit rating at BBB- with a stable outlook representing the company's inaugural credit rating. The rating reflects our dominant position on the domestic gas market, corroborated with the production growth potential from Neptun Deep and Caragele Reservoir developments, and a cautious financial policy approach. The rating allowed us to more effectively and efficiently access the credit markets. One other important topic I would like to highlight is that Romgaz is fully committed to decarbonization in line with the EU and national climate targets. The company concluded a cost-sharing agreement with EBRD with the aim of contracting specialized consultancy and getting support in elaborating Romgaz's decarbonization strategy. Work is currently in progress, and we expect to finalize the strategy by the end of this year. At the end of the presentation, I would also like to remind you that on September 11th, our shareholders approved the delisting of our GDRs from the London Stock Exchange. The delisting is expected to be completed at the end of 2024, and the decision was made as a result of weak liquidity on the LSE. Romgaz share will continue to be listed and traded on the Bucharest Stock Exchange, maintaining the company's possibility to benefit from additional sources of finances from new investors. With this, I would like to close our presentation and thank you for your attention. Thank you. Ladies and gentlemen, the line is now open to take questions. I would like to remind you that you have two options to address questions: either raise your hand and turn on your microphone or write a question. Ms. Ioana Andrei, please turn on your microphone. Ms. Ioana Andrei, you may now address the question. If you can hear us. Yes, I do, but can you hear me? Yes, yes, please. Okay, great. Good afternoon and thank you for the presentation. I have some questions. First, regarding the volumes delivered at the regulated price in the third quarter and the estimates for the fourth quarter, if you please disclose. Second, you mentioned Caragele field. Can you please indicate what is the production generated by Caragele and what is the annual forecast stemming from this field? And third, can you please tell us what is the impact on Romgaz after the courts decided that the overtaxation measures regarding the power market are unconstitutional? And if I may, one more question regarding dividends. Previously, in the previous calls, you mentioned a lower dividend payout forward on given the high financing needs. Has your perspective changed in any way? Thank you. That's all from my side. Okay, so thank you for the questions. Regarding the first nine months of this year, the percentage is around 55% of gas sold at regulated prices. For the entire 2024, the percentage will be a bit over 56% gas sold at regulated prices. Regarding the Caragele field, we are in the process of drilling. Right now, a new well has been put into production even on Monday. We have done rehabilitation works on 77 Rosetti, which is our deep, the well that explores the deep end of Caragele. Right now, Caragele has around 1 million CBM per day of production, but we are looking to increase this in the future. Of course, it depends on the success of the two wells that are being drilled right now at 78 and 76 Rosetti that will be followed by the 54 Damianca well that is going to be drilled next year. Regarding the impact of the constitutional court on the provision, on certain provisions of GEO 27, we are waiting for the decision to be published. We noticed that in the public information they released, they referred to the producers of renewable energy, which we are not, so we cannot issue any thought on this at the moment. So until we will not see exactly why they give such a decision, we cannot speculate or disclose anything. On the dividend policy, the approach to dividend has to be cautious because, as you can see, Romgaz has had a high investment in the first nine months, and this investment with the starting of the drilling in Neptun Deep will be higher in 2025 and 2026. So we need to have a cautious and prudent approach regarding the dividends. Ms. Laura Simion, you may now address your question. Hello. Thank you for the presentation. I have two questions. One regarding the volumes you had production at nine months 2024 by 4.5% higher year on year. What could you tell us about the full year indication for this year and for the next years until Neptun Deep comes into production? And second, referring the second question is referring to the revision that you made on financial statements. I want a confirmation if my understanding is correct that from what I read in your report, the increase in personnel expenses is mainly due to the fact that the works performed internally are now presented as revenues and expenses separately and before they were presented as an income or as a net income. And I want to confirm if I interpreted correctly the change. Thank you for your questions. I will answer your second question. The revision of the presentation of our financial statements did not have an impact on the increase in personnel expenses. The increase is due to an increase granted to personnel based on inflation rate. The increase seems large because in 2023, we only granted this increase starting in April. So 2023, nine months was not impacted by this increase. So we increased when we managed to increase the salaries in 2023 and index it with inflation. We did that in late October. So it wasn't the first nine months of 2023 were not impacted by this. And we had a subsequent inflation bonification to our employees that was done in July, in July this year as well. And all of this was because that we couldn't do this indexation with inflation because of the state budget laws. So this is why you see it looks like a higher increase than it actually is. Regarding the production, for this year, we expect total gas volumes of around 4.9 BCM, a tad higher than last year. For the next year, our strategic objective is to keep the decline in the limit of 2.5%. But we are doing all of our best to keep gas production in the region of 4.9 BCM until Neptun Deep will come online. I hope this answers both questions. Ms. Daniela Mândru, please address your question. My questions. What are the volumes allocated, the regulated prices for the first quarter of next year? So I'd like a volume in terawatts, not a percentage. And then the second question regards the power production. So it would be reasonable to expect that the power production in the last quarter of this year to be zero, or should we expect some production given the construction of the new power plant? That would be the second question. And these are all my questions. So regarding the power production node, it will not be zero. The Iernut Old Iernut Power Plant, indeed, it has been stopped for the works at the Transelectrica power station that we connect also the new power plant to the Transelectrica station. But because of the situation that we are seeing in the Romanian balancing market, we will do our best, and the Iernut Power Plant will be operational as long as possible. And also, it will be in operation as well when the tests will start. Regarding the tests, we are estimating that the first fire for the first gas turbine will happen mid-December, subsequently the next one, and subsequently the first synchronization for the first steam turbine in February 2025. All these are estimations. As you know, Romgaz has submitted to the Romanian government and the Ministry of Energy the prolongation of the P&I term up to mid-next year. So we are expecting that the government will promote, the Ministry of Energy will promote the prolongation of the P&I. Subsequently, we will sign an addendum with the contractor for the prolongation of the term and the putting into synchronization and finalizing the Iernut Power Plant. So if I may here, just to intervene, so in a nutshell, so this new Iernut Power Plant will start this production in the second half of the year. So after. Commercial production. So it will start commercial production. Commercial. Yes. The test and the first steam turbine, we expect it to be finalized by mid-February 2025. Okay. And until then, so we have three quarters until then, what would be the quarterly production of this remaining? It's very difficult to say. Right now, it is very difficult to give you an exact estimation of the production. It's dependent on the tests. It's very dependent on the tests, but we will also keep the old Iernut Power Plant as long as possible in function. But would it be reasonable to assume a 40%, I don't know, reduction compared with last year's quarters or something like this? You cannot compare what we had past the old power plant compared to the new one because the new one is 430 megawatts. It will start production. 250 MW will already start mid-February. The only thing is that the prices will probably not be the ones being tested. It depends a lot on the steam testing as well. So it's very difficult to give you an answer at this point in time. Okay. Thank you. Thank you. I have the other question regarding the gas volumes, the regulated price allocated for the next quarter, not for the next quarter, for the first quarter of next year. For the next quarter of next year, the gas, we needed the GEO 27 to be already prolonged because they haven't prolonged the price. We are looking at from the 1st of November to the 31st of March, we are looking at 16.6 TWh. 1 6.6. Okay. Thank you. This is all from. Yeah, please. Around 30% of all quantities that are going to be delivered in the first quarter of 2025. So 30% of the first quarter? Yeah, are already sold. Okay. Thank you. Welcome. Please feel free to address your questions or write down questions. Ms. Daniela Mândru, please. Yes, I would have another question. Now, I think your personnel expenses exceeded all the analyst expectations. What for the last quarter of the year? So what would be the amount or the increase year on year? So year on year, our expectation is to be below what we've budgeted this year, so. So you are referring to the full year? Yeah, to the full year. But can you please remember what is the budgeted amount for the full year? Yeah, one second. Because your budget, I don't know, it's budgeted on RAS; here are IFRS results. So there are some differences. So maybe you can indicate a value for the IFRS accounting. So according to our budget, personnel expenses should be tops RON 1.2 billion. Following the changing presentation that we in our financial statements, there shouldn't be any difference anymore between how we budget the expenses and how we present them in the financial statements. Okay. Thank you. What I noticed also in the last, in the third quarter, I think, yes, I noticed no, sorry, that was for the other company. So no, this is all from my side. Thank you. Thank you. If there are any other questions, please. Ms. Laura Simion, please address your question. Yes. Coming back to the personal expenses, I succeeded to find the page in your report. So referring strictly to the difference from the previous reporting for nine months 2023, you had RON 678 million before, and the revised figure is RON 762 million. So I was referring to this change. The change is done because when we did our initial budget, we did the budget in relation with the national budget law, which didn't allow us to give any type of indexation, and we were obliged to keep the level of the entire budget as the one we had in the previous year. After that, the law was changed and the budget was changed. And when we did our revised budget, we could do the indexation. But it's not about the budget. It's about the reporting in. Oh, okay. The difference between the two amounts, what we reported previously and what we are reporting now, was recorded as a cost included in the items of property, plants, and equipment that we developed in-house. Now, if you look at the financial statements, we have an additional line in the P&L named work performed by the group and capitalized. This income was netted against the employee benefit expense and some other expenses. It's all explained in notes to our financial statements. But this was exactly my initial question, if I may. It was more a confirmation, if my understanding is correct, that before you presented the net income, and now you have a revenue of RON 172 million and some expenses in addition to the previous expenses that you had. And the majority of these expenses are personnel expenses. It's not just personnel expenses. It's also depreciation of property, plant, and equipment, consumables, and some other expenses. Yes, but I saw that the personnel expenses have an addition of RON 114 million. So it's the largest. Yes. So if you look at notes to our financial statements, you will see the impact of this change. There's personnel expenses of RON 114 million and some other expenses reaching a total of RON 192 million. There's also an additional income reflected in the financial statements of the same amount, RON 192 million, so it has no impact on the financial statements, no impact on the end result. It's just on how we present the figures. Yes, yes, but it has an impact on the reported personnel expenses, which seems to increase a lot, but part of this increase is due to this change in reporting. No, because what you are seeing in the 2024 financial statements and the comparative for 2023, they are created based on the same reporting rules, so the increase does not relate to this change in presentation. The year-on-year increase, yes, but before your reporting, we based our estimates on the previous reporting, so that's why personnel expenses exceeded, as Dana said, our expectations. Oh, okay. I understand. Okay. Thank you. Thank you. Mr. Cristian Petre, please address your question. Hello. I have a few questions. Can you give more details on the replacement rate upward review? Is it connected to Caragele, to Neptun? It is not connected to Neptun. This is only our onshore reserves, and it is connected to our entire, let's say, exploration perimeters. Okay. So Iernut status, as far as I understand, you expect first sales in H2 2025? Yes. First proper commercial sales and commercial operations starting from the second half of next year. And up until then, as I said, we will keep the old plant in function as much as possible as far as we can. And the new plant will start the test, and first fire will be in next month, in mid-December 2024. Okay. And regarding Strategy 2030, I have a few questions. You mentioned a new gas-fired power plant. Can you give more color on capacities, or is it too early to talk about it? No, it's way too early to talk about capacity right now. Okay. In Strategy 2030, you mentioned business diversification on entering distribution sector and methanol production units. Do you have anything in mind? Will it be new licenses for the distribution, or will it be existing? Will you acquire some distributors? Right now, we are looking so we have a project of photovoltaic that we've participated with it on the modernization fund. We are also looking to diversify our electricity production with buying in or acquiring some renewables around 800- 200 MW that will be put into production up to 2027. On the methanol, hydrogen, we are still looking in the market, and we are evaluating our position and where we can find the most alpha. And regarding the distribution, we are probably looking at distribution companies. We have been looking also at supply companies as well. We are looking to develop our internal LNG as a supply side as well. So we are working in this direction. And do you have any timeline when to expect these new business lines to be operational? Not operational, but we will inform the market when we will have something extra. On the supply side, we are aiming for next year to probably start also our entrance, to say so, on the retail market. Okay. And the last question is regarding gas-to-power project to exploit isolated natural gas reservoirs. What does it mean? These are small power plants or what's? Yeah. These are small, let's say, modular engines where we cannot connect, or it is not economical to connect these wells to the national transport infrastructure, and it's easier to connect them to the grid. They will be sent next to them. Also, right now, looking at complementing natural gas or GNC also to add value to these wells. These are mostly related to some new fields? No. Also old fields that we have them drilled but are not connected to the national transport system. It's not. How was the delivery done up to now on the old fields or wells? It's not. There are drilled wells. The production tests have been done. On some of them, we had some engines but are no longer functioning. We are looking to replace those engines with modular engines to produce electricity, and some of them have been in conservation. Okay. Great. Thank you. Welcome. If there are any other questions, please feel free to address them. Ms. Daniela Mândru, please address your question. Regarding the issues for EUR 500 million, I have only a question. The coupon payment is yearly or half-year or quarterly? Annual. Annual. So it's annual. So you'll, okay. Thank you. So you will not pay anything this year? No. Okay. Thank you. Any other questions? If there are no further questions, we will conclude this conference call. Thank you for your questions. If you need further information, please contact our investor relations team. The conference is now concluded. On Romgaz's behalf, thank you for attending today's conference call.