Afternoon. I'm Lăcrămioara Ciolpan, Head of the Investors Relations, and I would like to thank you for attending this teleconference for the presentation of the interim financial statements on the 30th of September, 2023, unaudited. As you are very aware, the presentation material can be downloaded from the website of the company in the section Investors Relations, Financial Reporting, Quarterly Reporting. We would like to inform you that the conference will be registered, and the registration is available on the website of the company, in the section Investors Relations, Financial Reporting, where you can also find the presentation displayed today. We would like to kindly ask you that for a well conference, to keep your microphones closed and to open them only when you want to speak. At the same time, the questions may be also asked in the Q&A section. I will pass on the word to Mr. Marius Lupean, the Chief Financial Officer, to start the presentation. Mr. Lupean, please proceed. Good afternoon. Welcome to the presentation of the financial statements of Transgaz on the 30th of September, 2023. We will start the presentation by the factors that determine the results in nine months, 2023, and then at the end of the presentation, to have the section of questions and answers. Before we enter into details, into the factors that determine the evolution of the results, I would like to mention that the revenues of Transgaz were... The tariffs and the regulated revenues were frozen for the year 2020 to 2022. The same tariffs were maintained that were approved for the year 2021 to 2022, and under these circumstances, the revenues are similar to the same period of the previous year, but the costs increased due to inflation and the energy market. And this determined the decrease of the revenue from operating revenue or operating profit. In case the regulated revenue, 2020 to 2022 would have been applied, the revenue would have been higher by approximately RON 270,000, and the results would have been comparable to the ones registered in the previous year. Another factor that determined the results in the operating results were determined by the fact that the 100% provisions for the receivables with Gazprom were registered for the contract that is ongoing on the T3 pipeline. Gazprom did not pay its invoices on this contract. Starting of October 2022, Transgaz provisioned entirely those receivables, and took steps to bring to the court in order to receive these amounts. As for the financial revenues, they decreased mainly on account of the decrease in inflation, that the receivable of the concession agreement is adjusted. These are the main factors that determine the results. A decrease, a significant decrease in the operating results and the result in September. Another detail for the presentation of the evolution of the variations between the elements of revenue and the cost, the operating revenue from the balancing and construction activity were relative to 3% compared to the previous years, namely by RON 30,000, approximately RON 30 million lei. We approximated that the revenue was 30% higher, which determined better results for September 2023. I would like to mention that the transmission tariffs adjusted were approved, starting with the gas year 2023-2024, applied as of October 1, 2023. This revenue is higher by 60% compared to the one two years ago, and 30% compared to the one related to the previous year. So the results from the transmission activity will improve until the end of the year. As for the revenue from transmission, analyzing only the revenue recorded in 2023 compared to 2022, the capacity booking revenues are lower by RON 70 million, mainly on account of the auction premiums, which are lower registered this year compared to the previous years, lower by RON 65 million. In the previous year, RON 85 million lei revenues were recorded in 2023, RON 122 million lei. As for the commodity component, the revenues are similar. The transmitted quantity in this period is higher by 1% compared to the previous years, with a positive influence of RON 1 million. The revenues from international transmission increased by RON 38 million compared to the previous year, but these revenues were provisioned entirely because they are revenues in the relation with the Gazprom Export. As for the operating activity, the revenues recorded a decrease, mainly on account of the unique trading price. Revenues of RON 344 million. This did not have an impact on the activity of Transgaz, as the revenue and expenses from the balancing are equal in the balancing activity of Transgaz, which did not record profit or loss. As for expenses, they increased. They increased by 12% compared to the previous year. Technological consumption costs decreased compared to the previous year, mainly based on the quantities from the transmission activity at 30th September being lower compared to the previous year. The monopoly costs increased, and also the operating cost increased. Regarding expenses with receivables depreciation. Regarding technological consumption, we had a technological consumption over 0.5%, which is very good for a transmission operator. This information may be found in this presentation, which is published on our company's website. I propose to go to the questions and answers section, if you agree. Hello, thank you for the presentation. Can you hear me? Yes, we can hear you. We have a question regarding BRUA. How was this investment concrete? Because revenue from the auction premium are not significantly higher than before. What are our hopes regarding this investment? Disappear due to the fact that there is no sufficient capacity and the necessity to have the capacity, the capacity request, demand is higher. These are elements which determine the increase of the transmission capacities, because normally, capacity should be at the level of the market request. The auction premia are the result of the necessity to develop capacity. In the previous year, the auction premia, the auctions were finalized at the 30th step. So we had 30 auctions. This year, the auction rounds were fewer. The capacity was higher compared to the previous year, which determined the reduction of the revenue from the auction premia. But this revenue is regulated revenue. There is not a profit of the company. It's- The interest for BRUA is very high. The interest for BRUA is very high. If there was no interest, we would clear the auction at the transmission tariff of BRUA, as the revenue can be found in the regulated revenue through the profitability of the investment. I hope I answered your question. Thank you very much. Did you notice... Have you noticed a change in the clients' preferences regarding the products for the short term, medium term, long term over the last year compared to the previous year?... There isn't a significant change. Of course, capacity over the long term would rather be booked over the market. It's good for the market that the tariffs are lower, but of course, capacity is booked. Depending on the season, it covers the peaks with the shorter term products, optimizing costs for capacity booking. Thank you very much. [Foreign language] I have a few questions regarding the auction premia and this, capacity overrun. [Foreign language] Are they over the estimation of the regulated revenue, right? [Foreign language] Yes, they are over the approved revenue. But if at the end of the gas year, the total result from transmission, including this, this premium, are higher than approved, we make a correction with minus and vice versa. [Foreign language] I have a question regarding- [Foreign language] Gas year. The gas year ended in September. [Foreign language] What corrections could we see next year for the concluded gas year? [Foreign language] We shouldn't see any adjustments starting with the next year, according to our discussion. But as I can see, the revenue are quite high. [Foreign language] For 2020 to 2023, we had a non-realization of revenue. But this minus is estimated, the tariffs being approved in May, July. But in the revenue for 2023/2024, we have adjustments, which means that theoretically, we should give back RON 500 million. [Foreign language] We should see that at the end of next year. [Foreign language] We should see if there will be necessary corrections for 2023, 2024. Plus or minus? We will see if they will be plus or minus. [Foreign language] You took over- [Foreign language] the operation of the Moldovan transmission system? Yes, that's right. As Vestmoldtransgaz, which is held by Transgaz through Eurotransgaz, took over the operation of the entire transmission system in the Republic of Moldova. What does this mean for Transgaz? First of all, it means for Vestmoldtransgaz, which will operate the national transmission system and will collect all the revenue from the transmission activity. The Republic of Moldova will have only one operator for the system. So it means... This request to take over came from the fact that Moldovatransgaz was not aligned to the requirements for certification. This determined the taking over of the company, Vestmoldtransgaz. [Foreign language] We have a greater predictability over the revenue and the results of Vestmoldtransgaz, so it's a good fact, financially. [Foreign language] What does this mean for Transgaz? You report consolidating results. We will see that in the results. But what, what will be the impact? Is it a substantial impact? We see that they don't have very much revenue. The results are at nine months. [Foreign language] We cannot report wonders in 10 days. [Foreign language] What should be our expectations? [Foreign language] Can we expect any profit, any loss, something significant? [Foreign language] No, we expect to have profit, not significant in the first year, but later. It should not be compared to the profits and the revenue of Transgaz, but we will have profit and regulated profit for the next gas year. [Foreign language] Do they have the same system? ... What regulated return do they have? They have between 10 and 11. Is their investment plan a big one? It will be published. Vestmoldtransgaz as an operator will take over the investment, in Moldova, and the deadline is until the end of the month to be transmitted to the ANRE regulatory authority. Do you expect significant investments? No, in the first month, but we will see that later, but not in the first stage. Regarding the BRUA, last time we spoke that you would receive grants, European grants. For Black Sea. For the shore, we speak about EUR 80 million. Do you expect to receive other grants? We received the four other projects, EUR 100 million. This RON 100 million, do they include the RON 85 million? Yes. Are the other projects going to be implemented? We understood that they will be funded from these grants. Transgaz will prioritize the projects we have to do within the limit of the sources available. But yes, they will be performed with priority, Black Sea-Podișor. Connecting Mintia Power Plant. Yes, the projects are performed, will be performed, but they will be prioritized not to perform at the same time. Besides the EUR 85 million, will you receive other grants for Black Sea-Podișor? The commission reply is that in March they consider this project and there will be no second consideration. Once they analyze and approve the sum, they will not reanalyze it. Can I ask another question? Yes, please do so. Mrs. Ioana Andrei wanted to ask a question as well. No, please, luliana, continue, and then I will ask my question. Okay. I wanted to ask something about the results in quarter three. They are higher, a little bit higher in terms of receivables loss. Apart from Gazprom, is there anything else for this loss? No, it's only Gazprom. I saw that they are higher than in the previous ones. No, Gazprom made provisions of tens of millions EUR this year. But in quarter two, they appeared to be higher. I expect it to be the same amount, but they seem to be higher. You did not receive any money in the end, but. No, in the relationship with Gazprom, the contract stipulates that it has the obligation to buy, to pay EUR 2 million per month, he or his affiliates. If there are affiliated companies that book capacity in the system, the amounts are reduced, but they are not significantly higher. Were their capacity booked in the previous quarter? Yes, very low, but as a reduction, the provisions were deducted because the Electrocentrale Constanța, there were appeals from receivables from balancing, and so they decreased. This happened in quarter three? Yes, mainly in quarter three. But this decreased receivables would have a positive impact mainly. Yes, you are right. I say that the variation from a quarter to another is also connected to the revenues from the receivables that were made. If they increase, it means that those receivables were appealed before the said quarter. But from what I know, this is only an increase in quarter three compared to the previous quarters. That's why I asked. Okay. Thank you. I pass on the floor to you, yeah. Hello. Just a clarification related to the relationship with Gazprom. The provision of receivables were staggered throughout the year and not necessarily in a specific quarter. Yes, you're right. The receivables were provisioned in each quarter, in the end of each quarter. I would like to come back to the discussion related to the takeover of the activity from the Republic of Moldova. Could you tell us the rough, their revenue? I think it is better to send you a presentation. I will check if the, an area of the Republic of Moldova makes public such information, and then for sure, we will present them. Mainly, maybe part of the results, will be taken over in the presentation we, we display every quarter, and, then we will communicate them to you. Thank you very much. But in this, taking over of activity, will you take over the, tariff corrections as well? How do you do? Do you start from zero or you start with the entire history? No. Vestmoldtransgaz was the operator of the gas transmission system before. In 19th of September, and a few months before, it concluded a lease contract with the owner of the networks, which, which were operated by Moldovatransgaz. So a lease contract was concluded for the assets that, Moldovag az owned and operated. So from that moment on, it has the obligation to pay a tax, a lease for the use of goods from the operation of the entire NTS. Until the nineteenth of September, there were 120 kilometers of pipeline, and it operates 1,500 kilometers of pipelines in the Republic of Moldova. The revenues for Vestmoldtransgaz—Vestmoldtransgaz had an approved revenue until September, the nineteenth of September, and some additional costs with this lease and the maintenance contract. Such costs are added to the cost Vestmoldtransgaz had previous to the nineteenth of September. So as of nineteenth of September, so that you understand better, it has all the costs on and the revenues from the operation of the NTS in the Republic of Moldova. The operation and transmission activity in the Republic of Moldova, until the nineteenth of September, it had the costs and revenue related to 120 kilometers of pipelines. The discussions is towards having an idea on the regulated revenue we would expect and the regulated profit. How, how much would do you expect it to be? We would expect it to be around the millions, millions of EUR. Not tens of millions, only million of EUR. Millions. But I would like to repeat, I'll check if they are available to the public, information related to the regulated asset base, and I will submit them to you so that you can make an estimate and analyze them for the future. You saw that, they were approved in the Republic of Moldova until the end of the year for 2022. They had some transmission tariffs for the first months, and from October, November, December, they have rectified the revenues. They are increasing closer to the costs that are in the Republic of Moldova. Moldova passed on through the period where they had high costs and the tariffs were not approved, but in the quarter for 2023, they were approved. The rectification were approved for Vestmoldtransgaz, the operator of the entire system in the Republic of Moldova. I would like to kindly ask you to clarify, the royalty level was increased, and starting from what period? The royalty percentage was increased from 0.4% to 11.5%. Applicable, starting from? Applicable starting with, November, I think the twelfth of November, if I'm not mistaken, 2023. Okay. Thank you very much. You're welcome. Related to the royalties you mentioned, when, when, will the tariffs include them? Because basically it's a problem in the short term. Yes, they will be recognized in the regulated revenue, for sure. There were requests for them to be recalculated, to say so, starting from the first of January, 2024. We don't know if they will be or recognized or not, but it is a component to be recognized. Yes, but in the short term, they will be not recognized. It is a problem until they will be recognized starting with October 2024, maybe. But until then, yes, you're right. But increasing revenue to RON 1.6 million compared to RON 1.04 million, yes, it is bearable to say so. Yes, but it would have been better if it, it was not. What, what can we say? They are all RON 160 million, 10% of 1.6 is a significant amount, is not a small amount. Will be deferred or not deferred? Divided by 5 in the following 5 years. It cannot be divided in several years because it will be 11% in each year. No, the amount you will have to recover for the current gas year, starting with October 2024, the tariffs will be increased. We requested for it to be recalculated, for the tariffs to be recalculated, and to be calculated with that percentage. 11% is very simple to calculate, but if it does not happen, then the recovery, how will it be performed? The recovery will be performed according to the methodology applicable in 2024. Will it be one-off? RON 160 million recognized in tariffs will decrease in the following year, or so as not to have a higher volatility in tariff. Why to decrease next year? Because it is 11.5% this year. The figures are recognized subsequently for the next year. If you think that the royalty will be removed, in the next year, it will not. If we have 11.5%, we'll have 11.5% every year. Are they recognized ex post or before? I did not know they are recognized ex post. Yes, they are recognized ex post. Now I understand what you are speaking about. I thought that they are recognized, not ex post, ante post. To clarify further on, this 11.5% royalty? Not significant. Thank you. A little strategic. How can you see the gas flows? What do you expect to happen now with the redirectioning, with the war in Ukraine? Where do we place - Where do we expect to be placed? We, we expect to have a main transmission corridor recognized for gas supply in Europe. But sometimes we expect small discrepancies. What do you see for. This is the construction of the power plant at Mintia, Turceni, Ișalnița. We discuss of gas power plants to produce electricity and to consume cubic meters of gas. We can see interest for capacity booking for BRUA. In August, we had a capacity peak for BRUA capacity booking. We see that it's an important corridor to Hungary and other countries in Central Europe and Eastern Europe, but also for Ukraine, with the transit lines and towards the Republic of Moldova. So, the route is from south to the north, as you can see, over the long and medium term. Exactly. Who pays for this? For what? For any additional quantity transmitted through Romania, there is a benefit for the clients. Yes, I understand. But who are the stakeholders in this type of transactions over the medium and long term? Once the power plant is constructed, the gas necessary will be certain for generating electricity, and also, the necessary quantities to be supplied to Moldova. Romania offers transmission corridors, which are important. Thank you very much. Are there any other questions? Can we expect a rise in the number of employees now with the connection with the Black Sea shore? As you can see, the number of personnel decreased. Yes, but I was curious about the justification. She's... I've got an idea for a question in our survey. [Foreign language] Do you have any problems in hiring new personnel, or are you interested in keeping the personnel you have over the retiring age? I know that this is not, not the purpose of this meeting, but I was curious, how do you manage this issue? The ensuring of qualified human resources is quite hard to support and maintain. This is a general thing in Romania. But we make every effort to keep the personnel. We don't have a critical issue, but it's not easy. was important- Are there any other questions? [Foreign language] Thank you very much for your presentation. Thank you. Thank you very much for your presentation and replies. You're welcome. [Foreign language] If there are no other questions, we thank you for your participation. Uh, We look forward to see you at the presentation of the annual results. Thank you very much, Opanasi.