Industry Development Dynamics - The EU officially established the world's first permanent carbon removal certification standard on February 3, 2026, aiming to transform carbon removal into a "financial-grade" asset[10] - In 2026, China's Ministry of Agriculture will promote a comprehensive green transformation in agriculture, targeting an 80% utilization rate of livestock and poultry manure[9] - The International Energy Agency predicts that by the end of 2030, renewable energy and nuclear power will account for 50% of the global electricity structure[17] ESG Capital Market Dynamics - As of February 28, 2026, the CSI ESG 100 Index showed the best performance, rising by 1.5%, while the Shanghai Composite Index increased by 1.1%[25] - By the end of February 2026, there were approximately 62 ESG-themed public funds with a total net asset of 22.8 billion RMB, with no new ESG funds launched in February[26] - The total number of ESG bonds in China reached 2,790, with a total balance of 39,755 billion RMB, including 12,272 billion RMB in financial bonds, the largest category[32] Risk Factors - Rapid policy changes and uncertainties, slower-than-expected policy implementation, and the impact of the "anti-ESG" wave pose significant risks[38]

Financial Data and Key Metrics Changes - In 2025, the company achieved an EBITDA of COP 46.7 trillion, maintaining a stable EBITDA margin of 39% despite lower crude prices and inflationary pressures [30][31] - Net income for the year totaled COP 9 trillion, impacted by a 15% decline in Brent prices and various external factors [34][36] - The company transferred COP 35 trillion to the nation in dividends, taxes, and royalties, reaffirming its role in national economic development [5][6] Business Line Data and Key Metrics Changes - The exploration segment achieved a 44% success rate, exceeding the target of 10 wells by drilling 16, with a reserves replacement ratio of 121% [3][12] - Average production reached 745,000 barrels per day, with national crude production at its highest level in five years [4][14] - The refining segment saw a gross refinement margin increase of 32% compared to 2024, reaching $31 per barrel [19][20] Market Data and Key Metrics Changes - The company achieved the best crude differential in four years, closing 2025 at $4.6 per barrel, an improvement of $2 compared to 2024 [5][19] - The transportation segment transported over 1.1 million barrels per day, achieving one of its best historical performances in EBITDA and net income [18][30] Company Strategy and Development Direction - The company aims to strengthen its traditional business while advancing its energy transition strategy, focusing on natural gas and renewable energy projects [46][24] - Investments in hydrocarbons for 2026 are projected between $5.4 billion and $6.7 billion, with a focus on maintaining a competitive return and strict capital discipline [42][44] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of operational efficiency and financial discipline in navigating a challenging environment marked by lower crude prices and inflation [30][31] - The company expects to maintain a breakeven close to $47 per barrel in 2026, with a focus on optimizing costs and managing liquidity [44][75] Other Important Information - The company achieved a renewable energy capacity of 951 MW, surpassing its 2030 target, and made significant progress in energy efficiency initiatives [4][26] - The company plans to incorporate an additional 750 megawatts of renewable energy projects in operation, construction, and execution by 2026 [44][27] Q&A Session All Questions and Answers Question: Can you provide more details on the sequential fall of production and the total production of Permian and Delaware? - The company indicated that production levels are influenced by drilling intensity and market prices, estimating 38-40 wells to be drilled in 2026 [49][50] Question: Is the approved dividend subject to the collection of fiscal and ISAPEC? - The dividend recommendation is subject to the shareholders' meeting approval, and cash flow impacts from various accounts will be considered [52][53] Question: Can you provide guidance on the tax and equity payments? - The estimated payment for equity tax is between COP 1 billion and COP 1.3 billion, with strong liquidity to manage these payments [60][69] Question: What changes were made in the agreements with the National Agency of Hydrocarbons? - The company clarified that there were no changes in contracts, but a shift to monetary payments for royalties was made, enhancing stability in production expectations [71][72] Question: What is the reason for the gap between breakeven and EBITDA? - The breakeven is influenced by higher taxes and other factors, with a projected breakeven of $46 per barrel for 2026 [75][76]

Financial Data and Key Metrics Changes - Adjusted EBITDA increased by 31% to INR 74.8 billion for the nine months ending December 31, 2026, with a more than sixfold increase in profit after tax [8][9] - Revenue increased by 48% for the first nine months of the fiscal year compared to the previous year, driven by an increase in megawatts and contributions from the manufacturing business [17] - Headline leverage decreased from 8.2x in December 2024 to 7x debt to EBITDA currently, and is expected to reach 6.7x excluding contributions from joint venture partners [18] Business Line Data and Key Metrics Changes - Operating capacity increased from 10.7 GW to 11.8 GW, a 19% increase after adjusting for the sale of 900 MW of assets [5][17] - The manufacturing business contributed INR 10.8 billion to adjusted EBITDA for the first nine months [9][15] - The company sold 300 MW of solar assets this quarter, bringing total asset sales for the year to 600 MW [19] Market Data and Key Metrics Changes - The financing environment remains favorable, with interest rates on a downward trend, benefiting the company's capital structure [4] - Electricity demand has shown signs of recovery, with expectations for power demand to return to normal levels in fiscal 2027 [5] Company Strategy and Development Direction - The company is shifting focus from wind projects to more battery energy storage systems (BESS) and solar capacity to reduce capital expenditure and execution risk [7][13] - The strategic pivot aims to optimize cash flows and reduce volatility in revenues due to weather patterns [7][13] - The company plans to construct between 1.8 GW and 2.4 GW in the fiscal year ending March 31, 2026, up from previous guidance [27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about macroeconomic conditions, citing a recent trade deal between India and the U.S. that is expected to benefit the economy [4] - The company is focused on improving balance sheet strength and reducing leverage further, with a target leverage ratio of 5.5x by 2028-2030 [73] Other Important Information - The company received an A grade rating from LSEG and a score of 90.41 out of 100, placing it in the top quartile globally for ESG performance [10][24] - The company has achieved water positive certification for two sites, marking significant progress in sustainability initiatives [10][25] Q&A Session Summary Question: Can you elaborate on the revised strategy towards more solar and BESS projects? - The decision to decrease wind capacity was driven by lower costs of BESS and solar, improved ability to firm up power, and execution challenges associated with wind projects [30][32] Question: What is the update on the take-private strategy? - The company cannot comment on specifics regarding privatization discussions, stating that any necessary disclosures will be made at the appropriate time [36] Question: Are there improvements in transmission project delays and curtailment? - There is increased visibility and discussion within government ministries to address these issues, with recognition that curtailment losses should be shared among stakeholders [40][42] Question: What is the current status of TGNA capacity and associated curtailment? - Approximately 400 MW to 500 MW is currently under TGNA, with some degree of curtailment expected, but compensation is received for projects with permanent GNA [63][65] Question: How is the manufacturing business performing in terms of margins? - Margins have held up well, with a temporary lull during monsoons, but demand appears to be stable currently [44]

Core Viewpoint - The National Energy Administration reports significant growth in renewable energy generation in China, with a focus on accelerating green and low-carbon development by 2025 [1] Group 1: Renewable Energy Capacity - By the end of 2025, the total installed capacity of renewable energy in China is expected to reach 2.34 billion kilowatts, a year-on-year increase of 24%, accounting for approximately 60% of the total national power generation capacity [1] - The newly added installed capacity for wind and solar power is 438 million kilowatts, representing a year-on-year growth of 22.3% [1] Group 2: Renewable Energy Generation - The total renewable energy generation is projected to be 3.99 trillion kilowatt-hours by 2025, which is a 15% increase year-on-year and will account for about 38% of the total electricity generation [1] - The combined generation from wind and solar power is expected to reach 2.3 trillion kilowatt-hours, showing a year-on-year growth of 25%, which constitutes approximately 22% of the total electricity consumption [1] Group 3: Contribution to Electricity Demand - The newly added renewable energy generation of 519.3 billion kilowatt-hours has already covered the entire increase in national electricity consumption of 516.1 billion kilowatt-hours [1] - Currently, nearly 40% of every 10 kilowatt-hours of electricity consumed in society comes from renewable sources, indicating a significant shift towards green electricity [1]

Core Viewpoint - The National Energy Administration reports a significant increase in renewable energy generation by 2025, indicating a rapid shift towards green and low-carbon development [1] Group 1: Renewable Energy Growth - By 2025, the total renewable energy generation is projected to reach 3.99 trillion kilowatt-hours, representing a year-on-year growth of 15% and accounting for approximately 38% of total electricity generation [1] - The increase in renewable energy generation will cover the entire increment in national electricity consumption, which is expected to be 5.16 trillion kilowatt-hours [1] Group 2: Contribution to Electricity Consumption - Nearly 4 out of every 10 kilowatt-hours consumed in the country will be from renewable sources, highlighting the dominance of green electricity in the energy mix [1] - The total electricity consumption increase will be fully supported by the new renewable energy generation, with an additional 519.3 billion kilowatt-hours expected [1]

Core Insights - The International Energy Agency (IEA) predicts that global electricity demand will grow at an average annual rate of over 3.5% from now until 2030, with renewable energy and nuclear power together accounting for 50% of the global electricity mix by 2030 [1] Group 1: Electricity Demand Growth - Electricity demand growth is expected to be at least 2.5 times that of overall energy demand, driven by increased industrial electricity use, the ongoing adoption of electric vehicles, rising air conditioning usage, and increased electricity consumption from data centers and artificial intelligence [1] - Emerging and developing economies remain the primary engines of electricity demand growth, while developed economies are beginning to see an increase in electricity consumption after 15 years of stagnation [1] Group 2: Renewable Energy and Nuclear Power - Global renewable energy generation is on track to surpass coal-fired generation, with record deployment of solar power facilities; the latest data indicates that both sources will be nearly equal by 2025 [1] - Nuclear power generation is also reaching new records, and by 2030, renewable energy and nuclear power combined are expected to provide 50% of global electricity, up from the current 42% [1] Group 3: Coal Power Decline - As renewable energy develops, the share of coal-fired generation in the global electricity mix is expected to decline, projected to return to 2021 levels by 2030 [1] - Consequently, carbon emissions in the global power sector are expected to remain relatively stable from now until 2030 [1]

Core Insights - The International Energy Agency (IEA) predicts that global electricity demand will grow at an average annual rate of over 3.5% from now until 2030, with renewable energy and nuclear power together accounting for 50% of the global electricity mix by 2030 [1] Group 1: Electricity Demand Growth - The report indicates that the growth rate of electricity demand is expected to be at least 2.5 times that of overall energy demand from now until 2030 [1] - Key drivers of this growth include increased industrial electricity usage, the ongoing adoption of electric vehicles, rising air conditioning electricity consumption, and increased electricity use by data centers and artificial intelligence [1] Group 2: Regional Insights - Emerging and developing economies remain the primary engines of electricity demand growth [1] - Developed economies, which have experienced a 15-year stagnation in electricity consumption, are beginning to see an increase in electricity usage [1]

Core Insights - The International Energy Agency (IEA) predicts that global electricity demand will grow at an average annual rate of over 3.5% from now until 2030, with renewable energy and nuclear power together accounting for 50% of the global electricity mix by 2030 [1] Group 1: Electricity Demand Growth - The report indicates that the growth rate of electricity demand is expected to be at least 2.5 times that of overall energy demand, driven by increased industrial electricity use, the ongoing adoption of electric vehicles, rising air conditioning usage, and increased electricity consumption from data centers and artificial intelligence [1] - Emerging and developing economies are identified as the main engines of electricity demand growth, while developed economies are beginning to see an increase in electricity consumption after 15 years of stagnation [1] Group 2: Renewable Energy and Nuclear Power - Global renewable energy generation is on track to surpass coal-fired generation, with record deployment of solar power facilities, and the latest data shows that both sources will be nearly equal by 2025 [1] - Nuclear power generation is also reaching new records, and it is expected that by 2030, renewable energy and nuclear power combined will provide 50% of global electricity, up from the current 42% [1]

Core Viewpoint - Cuba's President Diaz-Canel announced a series of measures to transform the national energy structure and increase the share of renewable energy in electricity production in response to a new round of U.S. oil sanctions against Cuba [1] Group 1 - The Cuban government aims to enhance the role of renewable energy in its electricity generation [1] - The measures are a direct response to the renewed oil embargo imposed by the United States [1]

Financial Data and Key Metrics Changes - In 2025, the company achieved record high production of 2,137,000 barrels per day, a 3.4% increase from the previous year, driven by new fields coming online [31][32] - Cash flow from operations after tax reached $18 billion, with an earnings per share of $0.81 [31][34] - The return on average capital employed was 14.5%, indicating strong operational efficiency [31][34] - The company expects cash flow from operations to be around $16 billion in 2026, growing to approximately $18 billion in 2027 based on flat price assumptions [16][58] Business Line Data and Key Metrics Changes - The adjusted operating income from EMP Norway totaled $5 billion, influenced by increased production despite lower prices [32] - The EMP international results were affected by portfolio changes and an underlift situation, while U.S. results benefited from significantly higher gas production [32] - Production from renewables increased by 25% year-over-year, contributing to the overall growth in the integrated power segment [31][80] Market Data and Key Metrics Changes - The European gas market experienced cold weather and high storage drawdowns, with storage levels around 40%, significantly below the five-year average [6] - The company noted that U.S. gas production increased by 45%, benefiting from higher prices and well-timed acquisitions [30] Company Strategy and Development Direction - The company plans to reduce CapEx by $4 billion for 2026 and 2027, focusing on maintaining a strong balance sheet and cash flow [5][16] - Strategic priorities include maximizing long-term shareholder value, strengthening free cash flow, and developing an attractive oil and gas production portfolio [4][5] - The Norwegian Continental Shelf remains a key area for investment, with plans to maintain strong production levels into the next decade [12][22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of navigating geopolitical tensions and market uncertainties while maintaining operational safety as a top priority [4][7] - The company anticipates continued volatility in oil prices due to geopolitical risks and expects to manage through lower prices effectively [6][21] - Management expressed confidence in the execution of projects like Empire Wind, despite challenges, and emphasized the importance of cash flow from operations to support future investments [9][56] Other Important Information - The company announced a share buyback program of $1.5 billion for 2026, with an ambition to grow the quarterly cash dividend by two cents per share annually [18][35] - The total CapEx for Empire Wind is now expected to be around $7.5 billion, with $3 billion remaining [9][10] Q&A Session Questions and Answers Question: CapEx guidance for 2027 and its implications for 2028 - Management indicated that while CapEx has been reduced, it is too early to provide guidance for 2028, but consistency in investments is expected going forward [38][40] Question: Explanation of the price review that boosted results - The price review was a normal mechanism in gas contracts, where discrepancies between contract prices and market prices were renegotiated, resulting in a favorable arbitration outcome [41][42] Question: Johan Sverdrup production decline expectations - Management expects a decline of more than 10% for Johan Sverdrup in 2026, but below 20%, while still projecting overall production growth for the company [47][48] Question: M&A activity and asset sales - Management stated that while there are no specific assets on the sales list, the company remains open to opportunistic acquisitions and divestments to optimize its portfolio [49][50] Question: Breakdown of cash flow guidance for 2026 and 2027 - The increase in cash flow from operations is attributed to a combination of tax lag effects and a projected 3% production increase in 2026 [52][58] Question: Integrated power strategy and Ørsted's role - Integrated power for the company includes both renewable and flexible power sources, with Ørsted playing a collaborative role in offshore wind projects [70][76]