Business
PannErgy : Half-yearly Report
PannErgy : Half-yearly
About this update from Pannergy Nyrt
PannErgy Plc. SEMI-ANNUAL REPORT H1 2025 Report 19 September 2025 This announcement is published in Hungarian and English languages. In case of any contradiction between these two versions, the Hungarian version shall prevail. PANNERGY GROUP'S H1 2025 SEMI-ANNUAL REPORT Introduction and Table of Contents Report on PannErgy Group's H1 2025 profit/loss and management PannErgy Nyilvánosan Működő Részvénytársaság (registered office: H-1112 Budapest, Boldizsár utca 2, company registration number: 01-10-041618, tax number: 10558377-2-43, website: https://www.pannergy.com ) released its report on the first half of 2025 today. This report contains the consolidated financial statements, and other related non-financial statements, not audited by an auditor, prepared by the Company's management in accordance with the International Financial Reporting Standards (IFRSs) for the period ending on 30 June 2025. Table of contents Executive Summary 3 Projects and areas of operation 7 Analysis of the results of, and the financial situation in the reporting period 10 Consolidated financial statements (profit/loss, financial position, shareholders' equity, cash-flow) 15 Other financial statements, detailed information 19 Other supplementary information 25 The PannErgy Group's strategy, environmental objectives 29 Main risks faced by the Company, associated changes and uncertainties 31 Data sheets associated with financial reports, other detailed information 35 Data sheets relating to the share structure and the owners 37 Data sheets relating to the Issuer's organisation and operation 39 Data sheets related to extraordinary communication 40 Date of authorisation of disclosure 41 Declaration on the legal conformity of the semi-annual report 42 1 Executive Summary Consolidated heat sales exceeding plans and base, with the launch of the third production well in Miskolc In H1 2025, the PannErgy Group focused mainly on the successful commissioning of the third production well of the Miskolc Geothermal Project. Primarily due to this successful integration, PannErgy achieved record heat input in Q1 2025, exceeding both base quarter heat sales and the target for the period. In addition to the capacity expansion mentioned above, Q2 performance was also positively affected by the significantly more favourable weather conditions in terms of heating potential compared to the base period. Based on the prevailing weather conditions and capacity assumptions for the period under review, the PannErgy Group's consolidated heat sales for H1 2025 amount to 982 TJ, which is about 6% higher than the 927 TJ consolidated heat sales figure in H1 of the previous year and 4% higher than the projected value of 941 TJ. Impact on H1 of the new district heating regulation introduced from 2024 PannErgy indicated in several of its previous disclosures (quarterly production reports) how the new district heating regulation structure, effective from 1 October 2024, will change the Company's business and how it will affect the weighting of the profitability of each half of the financial year compared to previous periods. As of 1 October 2024, in contrast to previous regulation and practice, the Decree set district heating producer tariffs for PannErgy's subsidiaries subject to the district heating price regulation not only in the form of a sales heat tariff for the heat volume sold, but also in the form of a split heat supply tariff for the heat volume sold, and a monthly supplier base tariff, i.e. using a so-called two-element pricing system. In line with PannErgy's previous public communications, with the introduction of two-element pricing above, the sustainable profitability of the Company - derived from regulatory pricing - becomes more predictable. Also, the impact on the Company's profitability of changes in the demand for heat affected by the regulatory pricing (e.g. the weather) is minimised. It is important to emphasize that in the case of lower heat supply tariff (HUF/GJ) and higher supplier base tariff in the fourth quarter of the year compared to other quarters, the weight and share of the first half of the year in the operating profit generation capacity decreases in the financial year, while it increases in the second half of the year. The Company's H1 2025 management data reflects the intra-year rate change in its profitability described above, which due to the transition to the new regulation will only be reflected in the current half-year as a structural difference when compared to the base half-year (hereinafter: "Transition Effect"). The Company's EBITDA for the period under review was HUF 1,672 million, down HUF 233 million or 12% from HUF 2,265 million in the same period of the previous year, due to the Transition Effect detailed above. However, it is important to note that the Company has taken into account the Transition Effect in determining the range of the EBITDA plan for 2025, and therefore has no unplanned impact on its achievement. Confirmation of the EBITDA plan for 2025 The Company's management has defined a consolidated EBITDA target in the range of HUF 4,000 - 4,150 million under the IFRS for the 2025 business year, which represents an organic increase in the median value compared to the expected results of the 2024 business year. This EBITDA target range - and its expected achievement - was previously confirmed in the Q1 and Q2 2025 Production Report. On the basis of the EBITDA of HUF 1,672 million achieved in H1 2025 and other information contained in the semi-annual report, the Company confirms its previously published expectations for the Group's 2025 results, and thus maintains its expectation of achieving the consolidated annual EBITDA target range of HUF 4,000 - 4,150 million. Key management data for H1 2025 The Company generated consolidated sales revenue of HUF 4,129 million in the half-year under review, which is the same as in the base period. At the same level of sales, the Company's gross cash flow increased by 10% to HUF 2,038 million. There is a significant change in other revenues and expenditures, with a profit of only HUF 37 million in H1 2025 compared to a profit of HUF 427 million in the base period. This is due to the fact that, as a result of the aforementioned change in the district heating price regulation, the need for provisioning and releases of provisions and revenue accruals for each period, based on the period allocation of the regulatory heat sale pricing for district heating production in different periods, has been minimised. The Transition Effect forecasted by the Company is considered to be the primary cause of the decline in half-year EBITDA performance and net profit. Overall, the Company achieved a consolidated net profit of HUF 353 million in H1 2025 , which is 49% lower than the net profit of HUF 698 million in the first half of the previous year, but is in line with the Company's plans on a pro-rata basis and in line with the achievement of the plans for 2025. Main profit/loss data (HUF million) H1 2025 H1 2024 Revenue from sales 4,129 4,129 Direct cost of sales -3,272 -3,286 Gross margin 857 843 Gross cash flow 2,038 1,855 Gross cash flow rate 49% 45% Indirect costs of sales -407 -378 Other revenues and expenditures 37 427 Operating profit (EBIT) 487 892 EBITDA 1,672 1,905 EBITDA rate 40% 46% Profit/loss on financial transactions -134 -155 Of which: Effect of period-end FX revaluation 79 -64 Profit before taxes 353 737 Consolidated net profit for the reporting period 353 698 Key profitability indicators H1 2025 H1 2024 Return on Equity (ROE) 3% 6% Return on Sales (ROS) 9% 17% Earnings per ordinary share (HUF) 25 46 Treasury share transactions, repurchase programmes On 30 June 2025, the Company held 3,893,365 PannErgy Plc. treasury shares, 975,745 more than the opening portfolio of 2,917,620 treasury shares held on 31 December 2024. On 31 March 2025, PannErgy Plc. and its wholly owned subsidiary PannErgy Geothermal Plants CPlc. entered into an agreement with MVM Energetika CPlc. to purchase 1,675,745 ordinary shares of PannErgy Plc. held by MVM, to be acquired as treasury shares. Out of the total number of shares included in the agreement, 975,745 shares were purchased by PannErgy Geothermal Plants CPlc. in a fixed "large in scale" stock exchange transaction on 1 April 2025 at an average price of HUF 1,512 per share. The remaining 700,000 treasury shares were purchased on 4 September 2025, also at the contractual price of HUF 1,512 per share. The stock exchange closing price of PannErgy ordinary shares was HUF 1,430 per share at the end of the reporting period. This represents an 8% decrease compared to the closing price of HUF 1,560 on 31 December 2024. Distribution of dividends At the Company's Annual Ordinary General Meeting held on 25 April 2025 closing the business year 2024, after the approval of the individual and consolidated reports the Company adopted a resolution to the effect that it would not pay dividends for 2024. Share capital decrease The Company's Annual Ordinary General Meeting held on 25 April 2025, closing the 2024 business year, decided on decreasing the Company's share capital through General Meeting Resolution No. 8/2025 (IV.25.). Pursuant to the ruling adopted by the Court of Registration of the Budapest Metropolitan Court of Justice with effect from 27 July 2025, the number of PannErgy Plc. ordinary shares (ISIN identifier: HU0000089867) decreased from 18,000,000 to 16,000,000 . In line with this, the subscribed capital decreased from HUF 360 million to HUF 320 million. The Company's Management Board arranged for the cancellation and delisting of the shares, as a consequence of which PannErgy's stock of treasury shares decreased by 2,000,000 shares during Q3 2025 . Since the capital decrease took place after the semi-annual report's cut-off date, it only partly affects the relevant share-related and other information in this semi-annual report. Events of the reporting period related to geothermal projects In the period under review, the Company's project in Miskolc saw the commissioning of the third production well, following the well drilling in the previous year , and the completion of the related authorisation procedures. The Company's consolidated heat sales performance for H1 2025 already fully reflects the commissioning of the new well. The grant application for the non-refundable investment grant related to the project was declared successful in 2022, but the grant of HUF 662 million related to the post-financing grant was disbursed after this semi-annual report's cut-off date, in July 2025. Subsequent to the cut-off date of the semi-annual report, PannErgy's previously obtained exploration license for its project in the Budapest area was revoked by the Supervisory Authority for Regulatory Affairs (hereinafter: "SARA") , and the Company published an extraordinary announcement on 14 August 2025 regarding this and future opportunities. PannErgy will consider the legal, professional and business opportunities and will be able to decide on the initiation of a possible geothermal project near Budapest based on the outcome of these assessments. Projects and areas of operation Consolidated quantity of heat sold during H1 2025 300 000 250 000 200 000 150 000 100 000 50 000 0 2021 2022 2023 2024 2025 Figure 1 Consolidated quantities of heat sold, in GJ (The consolidated quantities of heat sold by the Miskolc, Győr, Szentlőrinc and Berekfürdő projects in a monthly breakdown) Figure 2 Consolidated actual and target volumes of heat sold, in a table format (GJ) Comparing consolidated heat sales of 981,899 GJ in H1 2025 with 926,807 GJ in the same period of 2024, it can be seen that group-wide heat sales show a 6% improvement in the first half of the year. Looking at each quarter, both quarters exceeded both the same period in the previous year and the targets. Consolidated heat sales in Q1 are 4% ahead of the same period of the previous year and 3% ahead of the quarterly plan. A comparison of the 2025 Q1 heat sales figures with the average values of the corresponding period in historical years indicates that PannErgy achieved record heat sales in the period under review, exceeding both the heat sales of the base period and the target for the period, mainly due to the launch of the third production well in Miskolc. The Q2 performance is also better than the Q1 due to more favourable weather conditions in terms of heating potential. In this quarter, performance was 11% ahead of the base period and 8% ahead of plan. 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 2021 2022 2023 2024 2025 Figure 3 Average temperatures in 2017-2025 The weather in Q1 2025 was significantly colder compared to the corresponding period in 2024, while the Group-level geothermal heat sales potential was similar to the average of recent years. In Q2 2025, the weather was colder compared to the same period in the base year, mainly due to the weather in May, while the Group-level geothermal heat sales potential was similar to the average of recent years. The operation of the PannErgy Group's geothermal projects in the reporting period Miskolc Geothermal Project (Miskolci Geotermia Ltd., Kuala Ltd.) In Q1 2025, the Miskolc Geothermal System sold a total of 328,026 GJ of thermal energy, significantly exceeding the 272,666 GJ of heat sales in the same period of 2024 by 20%. The significant increase in heat sales is mainly due to the commissioning of the third production well in Miskolc during the period. This change is in line with the Company's previously published forecasts, according to which the investment could increase the capacity of the system by up to 15-20%. With the increase in the number of production wells, the operational continuity of the Miskolc Geothermal Project has improved significantly, and the availability of spare capacity, which is not typical for geothermal power plants in Hungary and abroad, has been achieved at this project site, too. After the Győr Geothermal Project, this has become PannErgy's second system with spare capacity, providing the means to restart heat production in the event of a failure by way of a few hours' of reswitching instead of a well-pump replacement that may take at least 7 to 12 days. The positive trend in heat sales continued in Q2, with the Miskolc project companies selling a total of 141,115 GJ of thermal energy, 21% above the 116,650 GJ of heat sales in the same period in 2024, due to the capacity increase detailed earlier and favourable weather conditions affecting the heating potential. As a result, the Miskolc project sold heat in a total amount of 469,141 GJ during the first half of the year, 21% more than the 389,316 GJ sold during the base period. The amounts of heat sold in Miskolc were as follows during the reporting period (GJ): 140 000 120 000 100 000 80 000 60 000 40 000 20 000 0 2021 2022 2023 2024 2025 Figure 4 Quantity of heat sold in Miskolc (GJ) Győr Geothermal Project (DD Energy Ltd., Arrabona Koncessziós Ltd.) The Győr Geothermal System sold 332,706 GJ of thermal energy in Q1 2025, slightly below the average, below the corresponding period of the previous years and 9% below the 364,186 GJ of the base period, due to temporary technical reasons. In Q2 2025, 167,171 GJ of thermal energy were sold in Győr, slightly below average, but 4% above the 161,344 GJ sold in the same period in 2024. As a result of the above, a total of 499,877 GJ heat energy was sold in the first half of the period under review at project level in the case of the Geothermal System of Győr, 5% below the 525,530 GJ sold during the base half-year for the reasons mentioned above. The amounts of heat sold in Győr were as follows during the reporting period (GJ): 140 000 120 000 100 000 80 000 60 000 40 000 20 000 0 2021 2022 2023 2024 2025 Figure 5 Quantity of heat sold in Győr (GJ) Analysis of the results of, and the financial situation in the reporting period Results achieved in the reporting period, perspectives In H1 2025, despite the 6% improvement in consolidated heat sales mentioned above, the Company's consolidated sales revenue did not increase due to the Transition Effect resulting from the change in legislation detailed in Chapter 1, i.e. the change in the weight/ratio of the ability to generate results between the half-years. The consolidated sales revenue of the Company for the half-year under review amounts to HUF 4,129 million, which is equal to the revenue of the base period. Of the HUF 4,129 million in revenue, HUF 4,031 million was generated from heat sales, almost the same as the HUF 4,028 million generated in the same period of the previous year. In terms of the sales revenue structure broken down by project, the Győr Geothermal Project contributed HUF 2,468 million to the sales revenue of the PannErgy Group, 3% less than the HUF 2,535 million recorded for the corresponding period of 2024 due to the temporary technical reasons mentioned in section 2.2.2. Arrabona Koncessziós Ltd.'s sales to Győr-Szol CPlc. amounted to HUF 1,324 million of the total figure above, while DD Energy Ltd.'s sales to its automotive industry customer amounted to HUF 1,142 million (compared to HUF 1,602 million and HUF 932 million, respectively, in H1 of the previous year). Sales to heat-receiving partners realised within the framework of the Geothermal Project of Miskolc added up to HUF 1,518 million in the reporting period , of which HUF 1,488 million was sold to MIHŐ Miskolci Hőszolgáltató Ltd. These sales figures surpass the revenues of HUF 1,433 million from the Miskolc project of H1 of the previous year, and the HUF 1,418 million revenue from MIHŐ Miskolci Hőszolgáltató Ltd. At the Miskolc project level, revenue increased by 6% year-on-year, reflecting the impact of the third production well commissioned in 2025. The Company's two smaller projects generated less revenue in the period under review than in the same period of the previous year. The Szentlőrinc project generated HUF 40 million in sales revenue in H1 2025, 23% below the HUF 52 million figure booked in H1 of the previous year. The heat sales revenue of the Berekfürdő project amounted to HUF 4 million. In addition to the sales of heat, the Company earned HUF 54 million from selling electricity in the case of the Berekfürdő project, exceeding the HUF 49 million recorded for the first half of the previous year by 10%. In relation to the utilisation of the Company's industrial real properties in Debrecen, the Company realised revenues in HUF 25 million in the reporting period, of which HUF 15 million represented rental fee revenues. These figures are the same as those booked for the base period. Similarly to the previous period, three customers each exceeded 10% of the total amount of PannErgy Group's consolidated revenue from sales, making up a combined 96% percent of the total consolidated sales of PannErgy Group in the reporting period. This corresponds to the base period exposure data, also at 96% concentration. The direct costs of sales slightly dropped in H1 2025 to HUF 3,272 million from HUF 3,286 million recorded in the same period of the previous year. With the commissioning of the third production well in Miskolc, the Group's direct depreciation increased by 17%, but the impact on direct costs was fully offset by a decrease in electricity costs. The latter changed from HUF 1,130 million in the base period to HUF 874 million, a decrease of 23%. The decrease was mainly due to changes in the market pricing level of electricity costs. Other direct costs were influenced primarily by various sectoral inflationary effects observed during the reporting period. The Company's gross margin amounted to HUF 857 million during the period concerned, as a combined result of the changes in the sales revenue and the direct costs, 2% above the HUF 843 million value booked for the base period. The Company's gross margin rate was 21% during the reporting period (versus 20% in the base period). The Group reported a gross cash-flow figure of HUF 2,038 million in H1 2025 - 10% up from the HUF 1,855 million stated for the corresponding period of the previous year - while the gross cash-flow ratio equalled 49%. The increase is due to an increased share of depreciation in direct costs, while gross margin remained close to the same level . The administrative and overhead - i.e. indirect - costs amounted to HUF 407 million in the period under review, 8% over the HUF 378 million of indirect costs incurred in the first half of the previous year, mainly in line with the evolution of the inflation and market price environment related to these costs. Depreciation on assets not directly linked with energy industry activities, indirect personnel expenditures, general office and administration costs, expert fees are stated by the Company under the heading of indirect costs, among other items. In addition, this category of costs includes banking and insurance costs, non-capitalisable costs for business development and new projects, public and stock market presence costs, and costs to support social engagement, sports life and other social initiatives at project sites. The balance of other revenues and expenditures during the reporting period is a profit of HUF 37 million , in contrast to the HUF 427 million profit recorded in the base period. The significant change is due to the fact that, as a result of the aforementioned change in the district heating price regulation, the need for provisioning and releases of provisions and revenue accruals for each period, based on the period allocation of the regulatory heat sale pricing for district heating production in different periods, has been minimised. The amount of other income from non-refundable investment grants received without a cash movement was HUF 141 million within the HUF 198 million other income, which includes the write-back of grants received previously and recognised as deferred income adjusted for depreciation in the reporting year. The most substantial items (incurred in a total amount of HUF 86 million) of the HUF 161 million other expenses consist of local taxes, particularly, the local business tax paid to the local governments at the sites of geothermal projects. Another major item is the mining fee payable relating to geothermal heat production; under this heading the Company incurred expenditures of HUF 39 million in the reporting period. The combined result of the above was HUF 487 million in operating profit (EBIT) in H1 2025, 45% below the HUF 892 figure recorded in H1 2024. The business cash-flow (EBITDA) was an influx of HUF 1,672 million for H1 2025, which is HUF 233 million less than the HUF 1,905 million EBITDA recognised for the same period of the previous year . HUF 1,181 million was recognised in the reported half-year in the way of depreciation, 17% more than the HUF 1,012 million recorded in H1 2024. In calculating the EBITDA, pursuant to its accounting policy, the Company takes account of the extraordinary depreciation recognised among intangible assets and tangible assets; HUF 4 million other expenditures were recognised on such grounds. The Company met the EBITDA target for H1 2025 with an EBITDA margin of 40%. Financial P&L amounted to HUF 134 million loss in the period under review, HUF 21 million less than the HUF 155 million loss in H1 2024 under the heading of financial loss. The change is mainly due to the positive currency revaluation effect of the strengthening of the forint against the euro, which exceeds the deterioration in net interest income. The forint appreciated by nearly 11 forints against the euro during the reporting period, while it depreciated by nearly 12 forints in the base period. The realised and unrealised impact of exchange rate changes on foreign currency loans is HUF 95 million resulted in an improvement of HUF 154 million compared to the base period. At the same time, the realised and unrealised impact of the exchange rate changes on the financial result in case of foreign currency liabilities, receivables and accounts resulted in a financial expense of HUF -37 million which means HUF -36 million change compared to the same period of the previous year. The period's revaluation result, totalling HUF 58 million, was contributed by an unrealized revaluation of HUF 79 million at the end of the period, compared to the base half-year, where the accounted revaluation loss of HUF -60 million was associated with an unrealized revaluation of HUF -64 million at the end of the period. Net interest income increased from HUF 129 million in the base period to HUF 180 million, due to lower interest income and investment and grant pre-financing loan costs for the investment project of the third production well in Miskolc. The financial result related to the settlement of derivatives was HUF 10 million expenditure, while the financial result related to the settlement of securities was HUF 2 million expenditure. According to that these had a HUF -20 million and HUF -26 million negative effect on result compared to H1 2024. Accordingly, the PannErgy Group's H1 2025 profit before taxation is HUF 353 million, which equals 48% of the HUF 737 million profit posted for the corresponding period of the previous year.No corporate income tax liability was recognised in the period under review because the Company recognised an increase in deferred tax assets of HUF 31 million against the HUF 31 million corporate income tax expense reported in the period under review. The Company's consolidated net profit for the reporting period was HUF 353 million, down 49% or HUF 345 million from the HUF 698 million reported in the same period of the previous year. Analysis of the statement of financial position pertaining to the reporting period The portfolio of fixed assets decreased by 3% during the half-yearly period under review from the amount stated as at 31 December 2024. Within this, the value of intangible assets and that of tangible assets fell by 8% and 2%, respectively, year-on-year. For both asset categories, the decrease is due to depreciation in the reporting period. In the case of fixed assets, investment costs were incurred only for the trial operation and integration into the system of the third production well in Miskolc, which was commissioned in Q1 2025. The value of asset purchases during the reporting period amounted to HUF 561 million. The value of goodwill recognised by the Company did not change during the reporting period as compared to the end of the previous year, as its amount continued to equal HUF 678 million. As in the preceding periods, the Company continues to show its commercial real estate located in Debrecen, which are not used in connection with its core operations, as investment property, in an amount of HUF 76 million on 30 June 2025. Deferred tax receivables in the amount of HUF 136 million were recognised by the Company among assets on the basis of PannErgy Group's calculations relating to deferred tax recovery, the value of which increased by 30%, relative to the base period. This is primarily due to the fact that development provisions made in previous periods in relation to corporation tax (which previously represented a deferred tax liability) were utilised in the period under review, mainly in relation to the Miskolc expansion. The total value of current assets dropped by 36% in comparison to the amount recorded as of 31 December 2024 as the base period's figure. This change is mainly explained by the decrease in trade receivables and cash during the reporting period. The significant change in trade receivables of 43% is in line with the change in the same period in previous periods, as a consequence of the usual intra-year business cyclicality. The Company's clientèle remained unchanged during the reporting period. In addition to trade receivables, other receivables and securities are down significantly. The main reason for the decrease in other receivables is the decrease in accruals related to the official heat sale pricing already mentioned under other income, and the significant decrease in compensation-type receivables from supply partners compared to the previous period, due to financial settlements in the reporting period. The change in securities relates to the Company's short-term government securities maturing during the reporting period. Among its inventories the Company reported maintenance supplies and goods related to the geothermal projects in the amount of HUF 77 million as of 30 June 2025. At the end of the period, the Company had cash and cash equivalents of HUF 1,676 million , compared to HUF 1,971 million at the end of the base year, which continues to show a stable financial position. Of the closing balance at the end of the period HUF 1,048 million is disposable liquid assets (typically as cash on deposit) and HUF 628 million is separated blocked cash The Company's equity decreased by 9% compared to the base period, mainly due to the equity-reducing effect of the treasury share purchases during the reporting period. Equity per share (counting with the number of shares minus the portfolio of treasury shares) decreased to HUF 810 from the HUF 833 recorded as of 31 December 2024. The long-term loan portfolio dropped by 14% from the amount reported at the end of the previous financial year to HUF 7,354 million as a combined result of debt servicing during the reporting period and the revaluation of loans denominated in EUR on the basis of the exchange rate in place on the cut-off date. The level of provisions was similar to the base period, at a minimum level. The over-year part of the amounts of the non-repayable grants won, and disbursed earlier within the framework of application schemes for geothermal projects, that have not yet been recognised among revenues, is shown in the other long-term deferred revenues line. An amount of HUF 2,788 million is stated in this regard in the Company's balance sheet among its long term liabilities, showing a 4% drop year-on-year, as a result of the reversal of deferred revenues in an amount of HUF 141 million during the period under review in proportion with the depreciation of the related assets. Within current liabilities, the balance of trade payables was HUF 990 million, which shows a 29% cyclical decrease compared to the base period. Short-term loans, borrowings and leases amounted to HUF 3,136 million, which is significantly higher than the HUF 2,370 million at the end of the previous financial year. The main part of the portfolio is the principal amount of bank long-term loans maturing within one year, amounting to HUF 1,660 million. Short-term loans and borrowings based on the contractual maturity amount to HUF 1,273 million, of which HUF 497 million is the pre-financing of the grant awarded in 2022 for the construction of the third production well in Miskolc. Its contractual repayment was made in Q3 2025, in line with the disbursement of the related grant. Among the short-term loans and borrowings, the Company also has EUR 1.5 million of loans receivable that are linked to the ownership. In addition, a further HUF 203 million liability relates to the recognition of leased productive assets in accordance with IFRS 16 Leases as a short-term lease instalment. Other short-term liabilities amounted to HUF 380 million at the end of the reporting period, which is 37% less than the HUF 599 million at the end of the previous period. The main reason for the decrease compared to the previous period is the decrease in VAT liabilities, which are at a lower level in the period under review due to seasonal reasons. Consolidated financial statements (profit/loss, financial position, shareholders' equity, cash-flow) IFRS consolidated profit and loss statement IFRS consolidated profit and loss statement (HUF million) H1 2025 H1 2024 Ratio % Revenue from sales 4,129 4,129 100.0 Direct cost of sales -3,272 -3,286 99.6 Gross margin 857 843 101.7 Gross margin ratio % 21% 20% of which direct depreciation write-off 1,181 1,012 116.7 Gross cash-flow 2,038 1,855 109.9 Gross cash-flow rate % 49% 45% Indirect costs of sales -407 -378 107.7 Other revenues 198 559 35.4 Other expenditures -161 -132 122.0 Operating profit (EBIT) 487 892 54.6 Operating profit rate % 12% 22% EBITDA 1,672 1,905 87.8 EBITDA rate % 40% 46% Revenues from financial transactions 171 131 130.6 Expenditures on financial transactions -305 -286 106.7 Profit/loss on financial transactions -134 -155 86.5 Profit before taxes 353 737 47.9 Corporate income tax - -39 - Profit after taxes (Net profit/loss for the reporting period) 353 698 50.6 of which: Net earnings attributed to the Company's shareholders during the reporting period of which: Share of (external) minority shareholders from the earnings of the reporting period 353 - 698 - 50.6 Earnings per ordinary share (HUF) Basic 25 46 54.3 Diluted 25 46 54.3 IFRS consolidated statement of financial position IFRS consolidated statement of the financial position (HUF million) 30.06.2025 3 1.12.2024 Ratio % 3 0.06.2024 Fixed assets Intangible assets 1,322 1,430 92.4 1,545 Goodwill 678 678 100.0 678 Tangible assets 21,076 21,591 97.6 20,619 Investment properties 76 77 98.7 83 Receivables from deferred taxes 136 105 129.5 117 Long-term receivables - - - - Total fixed assets 23,288 23,881 97.5 23,042 Current assets Inventories 77 31 248.4 35 Trade receivables 1,066 1,882 56.6 536 Other receivables 220 608 36.2 608 Prepaid income taxes 29 12 241.7 - Securities - 298 - 1,487 Liquid assets 1,676 1,971 85.0 620 Total current assets 3,068 4,802 63.9 3,286 TOTAL ASSETS 26,356 28,683 91.9 26,328 Shareholders' equity and liabilities Subscribed capital 360 360 100.0 400 Reserves net of profit/loss of reporting period 16,288 15,350 106.1 17,682 Net P&L for the reporting year (attributable to the shareholders of the 353 1,405 25.1 698 Company) Reserve for repurchased treasury shares -5,568 -4,551 117.9 -6,934 Minority shareholdings - - - - Total shareholders' equity 11,433 12,564 122.3 11,846 Long-term credits 7,354 8,561 85.9 7,977 Other long-term deferred revenues 2,788 2,914 95.7 3,059 Provisions 14 10 140.0, 152 Total long-term liabilities 10,156 11,485 88.4 11,188 Trade payables 990 1,398 70.8 320 Short-term credits 1,273 497 256.1 507 Short-term part of long-term credits Short-term part of other long-term deferred 1,863 1,873 99.5 1,885 revenues 261 267 97.8 264 Deferred tax liabilities - - - - Other short-term liabilities 380 599 63.4 318 Total short-term liabilities 4,767 4,634 102.9 3,294 SHAREHOLDERS' EQUITY AND LIABILITIES 26,356 28,683 91.9 26,328 IFRS consolidated overall profit and loss statement IFRS consolidated overall profit and loss statement H1 2025 H1 2024 Ratio (HUF million) % Net P&L for the reporting year 353 698 50.6 Other comprehensive income in the period with tax implications - - - Total other comprehensive income for the year 353 698 50.6 Total other comprehensive income attributable to the shareholders of the Company 353 698 50.6 Share of minority (external) shareholders in total other comprehensive income - - - Consolidated statement on equity under the IFRS Participati Consolidated statement on Subscribe Repurchased on of Reserves Equity equity (HUF million) d capital treasury share external members Balance as at 31 December 2023 400 16,938 -5,880 - 11,458 H1 2024 profit/loss - 698 - - 698 Changes in the participation of external members - - - - - Consolidation difference - -10 - - -10 Repurchased treasury shares - - -300 - -300 Decrease in treasury shares - 754 -754 - - Distribution of dividends - - - - - Balance as at 30 June 2024 400 18,380 -6,934 - 11,846 Balance as at 31 December 2024 360 16,755 -4,551 - 12,564 H1 2025 profit/loss - 353 - - 353 Changes in the participation of - - - - - external members Consolidation difference - - - - - Repurchased treasury shares - - -1,484 - -1,484 Decrease in treasury shares - -467 467 - - Distribution of dividends - - - - - Balance as at 30 June 2025 360 16,641 -5,568 - 11,433 IFRS consolidated cash flow statement IFRS consolidated cash flow statement (HUF million) H1 2025 H1 2024 Liquid assets from operations Profit before taxes 353 737 Adjustments in relation to profit before taxes and the cash flow of business operations Amortisation and depreciation of tangible and intangible assets 1,181 1,013 Effect of deferred taxes -31 3 Income tax expenditures - -39 Exchange gain/loss on credits -95 59 Allocation and release of provisions 4 -184 Extra depreciation write-off on tangible assets 4 - Impact of the share option programme valuation on changes in capital - - Changes in minority participations - - Changes in working capital elements Increase/decrease in prepaid income taxes -17 - Increase/decrease of inventories -46 -5 Increase/decrease in receivables 1,204 1,204 Increase/decrease in liabilities -627 -827 Net liquid assets originating from/used in operations 1,930 1,961 Investment activities Acquisition of tangible and intangible assets -561 -1,982 Sales of tangible and intangible assets - - Increase/decrease in long-term receivables - - Other long and short-term deferred revenues -132 -139 Liquid assets from/used in investment operations -693 -2,121 Financial operations Increase in/repayment of long-term loans -1,321 281 Increase/decrease in short-term loans 975 498 Exchange rate difference from consolidation - -10 Purchase, revaluation, of treasury shares -1,484 -300 Sale of treasury shares, exercise of options under share option programme - - Amount prescribed for dividend payment - - Increase/decrease in securities 298 -1,203 Liquid assets from/used in financial transactions -1,532 -734 Net increase/decrease in cash and cash equivalents -295 -894 Cash and cash equivalents as of 1 January 1,971 1,514 Cash and cash equivalents as of 30 June 1,676 620 Other financial statements, detailed information Direct cost of sales Direct cost of sales (HUF million) H1 2025 H1 2024 Direct depreciation 1,181 1,012 Maintenance, operation and facility management costs 1,146 1,065 Electricity charges 874 1,130 Insurance fees (linked to heat generation) 41 43 Other direct costs 17 18 Costs of goods sold, mediated services 13 18 Total indirect costs of sales 3,272 3,286 Indirect costs of sales (indirect costs) Indirect costs of sales (HUF million) H1 2025 H1 2024 Indirect personnel-type costs 158 127 Expert fees, bookkeeping, audit fees 107 94 Office and operating costs 91 78 Banking costs 22 17 Insurance premiums 20 20 Costs related to public and stock exchange presence, and corporate 8 39 Other fees and duties payable to authorities 1 2 Indirect depreciation - 1 Total indirect costs of sales (indirect costs) 407 378 Other revenues and other expenditures Other revenues and other expenditures (HUF million) H1 2025 H1 2024 Income from funds granted for development 141 139 Fines, penalties, compensations received 43 - Provisions released 11 185 Revenues related to heat sales of the next period - 184 Other items not detailed 3 51 Total other revenues 198 559 Local taxes 86 86 Mining fee 39 39 Provisioning during the reporting year 15 - Fines, penalties, compensations paid 10 1 Extraordinary depreciation and scrapping of assets 4 - Other items not detailed 7 6 Total other expenses 161 132 Profit/loss on other activities 37 427 Financial profit Profit/loss on financial transactions (HUF million) H1 2025 H1 2024 Exchange gain on credits and loans denominated in foreign 95 - Interest and interest-type income 44 65 Exchange gain on liabilities denominated in foreign currencies 18 4 Exchange gain on interest earning securities 9 25 Exchange gain on receivables denominated in foreign 3 20 Exchange gain on foreign currency accounts 2 5 Gains on derivative transactions - 12 Total income from financial transactions 171 131 Interests paid 224 194 Exchange loss related to FX accounts 28 15 Exchange loss on receivables denominated in foreign 25 5 Exchange loss on securities 11 1 Loss on derivative transactions 10 2 Exchange loss on liabilities denominated in foreign currencies 7 10 Exchange loss on credits and loans denominated in foreign - 59 Total expenses on financial transactions 305 286 Profit/loss on financial transactions -134 -155 Of which: from the revaluation of items denominated in foreign currencies at the end of the period 79 -60 (unrealised exchange gain/loss) Relevant exchange rate at the at the end of the period MNB medium exchange rate 30.06.2025 31.12.2024 30.06.2024 31.12.2023 EUR/HUF rate 399.30 410.09 395.15 382.78 In the reporting period the foreign exchange revaluations have an impact of HUF 79 million gain on the result of the financial transactions at the end of the period compared to a loss of HUF 64 million in the base period. In accordance with IFRS requirements, monetary items of the PannErgy Group carried in currencies other than the HUF - the functional currency - are translated to HUF at the exchange rate prevailing at the end of the period, and the (financially unrealised) exchange rate differences resulting from such translations are recognised in the statement of profit or loss under financial transactions. The result of end-of-period revaluations on 30 June 2025 was a profit resulting from the strengthening of the HUF against the EUR relative to previous reporting periods. Attention : This is an excerpt of the original content. To continue reading it, access the original document here .