SNGN Romgaz : Consolidated financial statements of SNGN ROMGAZ SA Group for the year ended December 31, 2025

CONTENTS: PAGE:

Consolidated statement of comprehensive income 1

Consolidated statement of financial position 2

Consolidated statement of changes in equity 4

Consolidated statement of cash flows 5

Notes to the consolidated financial statements 7

1. Background and general business 7

2. Material accounting policies; significant estimates and judgments 7

3. Revenue and other income 23

4. Finance income 23

5. Purchase cost of commodities sold, raw materials and consumables 24

6. Other gains and losses 24

7. Depreciation, amortization and impairment expenses 24

8. Employee benefit expense 25

9. Finance costs 25

10. Taxes and duties 25

11. Income tax 25

12. Property, plant and equipment 28

13. Exploration and evaluation for natural gas resources 30

14. Intangible assets. Right of use assets 30

15. Inventories 31

16. Accounts receivable. Contract liabilities 31

17. Share capital. Earnings per share 33

18. Provisions and retirement benefit obligation 34

19. Deferred income 37

20. Trade and other current liabilities 38

21. Financial risk management 38

22. Related party transactions and balances 41

23. Information regarding the members of the administrative, management and

    supervisory bodies 42

24. Investment in associates 43

25. Other financial investments 44

26. Segment information 45

27. Cash and cash equivalents 46

28. Bank borrowings. Bonds 47

29. Bank deposits other than cash and cash equivalents 48

30. Guarantees granted by banks 48

31. Guarantees received from banks 49

32. Contingencies 49

33. Joint arrangements 49

34. Auditor's fees 50

35. Events after the balance sheet date 50

36. Authorization of financial statements 50

comprehensive income

Cumulative translation adjustments (11) -

Total items that may be reclassified subsequently to the income

statement (11) -

Items that will not be reclassified subsequently to profit or loss

Total comprehensive income for the

year 3,334,194 3,198,569

Basic and diluted earnings per share 17 b) 0.00086 0.00083

These financial statements were authorized for issue by the Board of Directors on March 25, 2026.

Răzvan Popescu Gabriela Trânbițaș

Chief Executive Officer Chief Financial Officer

These financial statements were authorized for issue by the Board of Directors on March 25, 2026.

Răzvan Popescu Gabriela Trânbițaș

Chief Executive Officer Chief Financial Officer

Balance as of January 1, 2025

Profit for the year

Other comprehensive income for the year

Total comprehensive income for the year

Increase in reserves **) Dividends distribution *) Balance as of December 31,

2025

Balance as of January 1, 2024

Profit for the year

Other comprehensive income for the year

Total comprehensive income for the year

Increase in share capital Increase in reserves **) Dividends distribution *) Balance as of December 31, 2024

*) In April 2025 the Company's shareholders approved the distribution of dividends of RON 604,342 thousand (2024: RON 549,227 thousand), dividend per share being RON 0.1568 (year ended December 31, 2024: RON 0.1425). In 2024, dividends of RON 24,580 were distributed based on an inspection by the National Agency of Fiscal Administration performed during November 2019 - January 2020 on the application of Government Emergency Ordinance no. 114/2018.

**) The increase in reserves was approved by shareholders in 2025. Profit distribution is based on the provisions of Government Ordinance no. 64/2001. The Ordinance is applicable to companies controlled by the Romanian State and states the reserves that can be set-up, the level of dividends that should be distributed and the terms of such distribution. Reserves for investments in strategic projects were set up based on the changes introduced in 2024 to Government Ordinance no. 64/2001. Development fund reserve may be distributed if the majority shareholder asks for it. The reserve for investments in strategic projects has to be distributed if the funds are not used or committed by the time the investments funded from this reserve are commissioned. All other reserves are not distributable. According to the legislation in force, the legal reserve and the reinvested profit reserve are set up at year end and will be subject to shareholders' approval in the following year.

These financial statements were authorized for issue by the Board of Directors on March 25, 2026.

Răzvan Popescu Gabriela Trânbițaș

Chief Executive Officer Chief Financial Officer

Income taxes paid (493,855) (2,193,168)

These financial statements were authorized for issue by the Board of Directors on March 25, 2026.

Răzvan Popescu Gabriela Trânbițaș

Chief Executive Officer Chief Financial Officer

1. BACKGROUND AND GENERAL BUSINESS

   Information regarding Societatea Națională de Gaze Naturale Romgaz S.A. Group (the "Group")

   The Group is formed of Societatea Națională de Gaze Naturale Romgaz S.A. ("S.N.G.N. Romgaz S.A."/"the Company"/"Romgaz"), as parent company, and its fully owned subsidiaries S.N.G.N. ROMGAZ S.A. - Filiala de Înmagazinare Gaze Naturale DEPOGAZ Ploiești S.R.L. ("Depogaz") incorporated in Romania, Romgaz Black Sea Limited incorporated in the Commonwealth of the Bahamas and Romgaz Trading S.R.L. incorporated in the Republic of Moldova. Depogaz is the main gas storage operator in Romania. Romgaz Black Sea Limited holds 50% of the rights and obligations for the Neptun Deep offshore block.

   Romgaz is a joint stock company, incorporated in accordance with the Romanian legislation. The Company is listed on the Bucharest Stock Exchange.

   The Company's headquarter is in Mediaş, 4 Constantin I. Motaş Square, 551130, Sibiu County.

   The Romanian State, through the Ministry of Energy, is the majority shareholder of S.N.G.N. Romgaz S.A. together with other legal entities and physical persons (note 17).

   The Group has as main activity:

   1. geological research for the discovery of natural gas, crude oil and condensate reserves;

   2. operation, production and usage, including trading, of mineral resources;

   3. natural gas production for:

      • ensuring the storage flow continuity;

      • technological consumption;

      • delivery in the transmission system.

   4. underground storage of natural gas;

   5. commissioning, interventions, capital repairs for wells equipping the deposits, as well as the natural gas resources extraction wells, for its own activity and for third parties;

   6. electricity production and supply.

2. MATERIAL ACCOUNTING POLICIES; SIGNIFICANT ESTIMATES AND JUDGMENTS

   1. Material accounting policies Statement of compliance

      The consolidated financial statements ("financial statements") of the Group are prepared in accordance with Ministry of Public Finance Order no. 2844/2016 to approve accounting regulations in accordance with International Financial Reporting Standards, with subsequent amendments (MOF 2844/2016). MOF 2844/2016 is in accordance with the IFRS adopted by the European Union.

      Basis of preparation

      The financial statements are prepared on a going concern basis. The principal accounting policies are set out below. The same accounting policies, methods of computation and presentation were followed in the preparation of these financial statements as were applied in the most recent annual financial statements.

      Items included in these financial statements are denominated in Romanian lei. Unless otherwise stated, the amounts are presented in lei thousand (RON thousand).

      Fair value

      Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using an appropriate valuation technique. In estimating the fair value of an asset or a liability, the Group takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for measurements that have some similarities to fair value but are not fair value, such as net realizable value in IAS 2 "Inventories" or value in use in IAS 36 "Impairment of assets".

      In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance to the Group of the inputs to the fair value measurement, which are described as follows:

      NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

      • level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the measurement date;

      • level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

      • level 3 inputs are unobservable inputs for the asset or liability.

        Basis for consolidation

        Subsidiaries

        The Group controls an investee when it has exposure, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

        Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when it loses control of that subsidiary.

        Upon obtaining control of a newly acquired subsidiary, the Group assesses whether the acquisition constitutes an acquisition of a business or an acquisition of assets.

        Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the investee. Acquisition-related costs are expensed as incurred.

        The Group determines that it has acquired a business when the acquired set of activities and assets include an input and a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organized workforce with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs.

        When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date.

        If the acquisition is not a business, it is accounted for as an acquisition of assets.

        Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with those used by the Group. All intra-group assets and liabilities, income and expenses relating to transactions between members of the Group are eliminated in full on consolidation.

        Associates

        An associate is a company over which the Group exercises significant influence through participation in decision making on financial and operational policies of the entity invested in. Investments in associates are recorded using the equity method of accounting. By this method, the investment is initially recognized at cost and adjusted thereafter for the post-acquisition change in the Group's share of the investee's net assets. The Group's profit or loss includes its share of the investee's profit or loss and the Group's other comprehensive income includes its share of the investee's other comprehensive income.

        Joint arrangements

        A joint arrangement is an arrangement of which two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

        A joint arrangement is either a joint operation or a joint venture.

        A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Those parties are called joint operators.

        A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement. Those parties are called joint ventures.

        NOTES

        Joint operations

        The Group recognizes in relation to its interest in a joint operation:

      • its assets, including its share of any assets held jointly;

      • its liabilities, including its share of any liabilities incurred jointly;

      • its revenue from the sale of its share of the output arising from the joint operation;

      • its share of the revenue from the sale of the output by the joint operation; and

      • its expenses, including its share of any expenses incurred jointly.

        As joint operator, the Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses.

        If the Group participates in, but does not have joint control of, a joint operation it accounts for its interest in the arrangement in accordance with the paragraphs above if it has rights to the assets, and obligations for the liabilities, relating to the joint operation.

        If the Group participates in, but does not have joint control of, a joint operation, does not have rights to the assets, and obligations for the liabilities, relating to that joint operation, it accounts for its interest in the joint operation in accordance with the IFRSs applicable to that interest.

        Standards and interpretations valid for the current period

        The following standards and amendments or improvements to existing standards issued by the IASB and adopted by the EU have entered into force for the current period:

      • Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates": Lack of Exchangeability

        (applicable to annual periods beginning on or after January 1, 2025).

        The adoption of these amendments, interpretations or improvements to existing standards has not led to changes in the Group's accounting policies.

        Standards and interpretations issued by IASB and adopted by the EU, but not yet effective

        At the date of issue of the financial statements, the following standards, amendments or improvements were adopted by the EU, but not yet effective:

      • IFRS 18 "Presentation and Disclosure in Financial Statements" (applicable to annual periods beginning on or after January 1, 2027);

      • Annual Improvements Volume 11 (applicable to annual periods beginning on or after January 1, 2026);

      • Contracts Referencing Nature-dependent Electricity - Amendments to IFRS 9 and IFRS 7 (applicable to annual periods beginning on or after January 1, 2026);

      • Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7 (applicable to annual periods beginning on or after January 1, 2026).

        The Group did not adopt these standards, amendments or improvements before their effective dates. The Group is assessing the potential impact on its financial statements.

        In relation to IFRS 18, the standard introduces a revised structure for the statement of comprehensive income, including mandatory subtotals such as operating profit and profit before financing and income taxes. IFRS 18 also introduces enhanced requirements for disaggregation and management-defined performance measures (MPMs). As the Group communicates certain indicators externally (such as EBITDA and EBIT), the standard will require reconciliations of such measures to the closest IFRS-defined subtotals, together with explanations of their relevance. The Group will assess the implications and will update these disclosures as implementation progresses.

        Standards and interpretations issued by IASB not yet endorsed by the EU

        At present, IFRS endorsed by the EU do not significantly differ from IFRS adopted by the IASB except for the following standards, amendments or improvements to the existing standards and interpretations, which were not endorsed for use in the EU as at date of publication of financial statements:

      • IFRS 19 "Subsidiaries without Public Accountability: Disclosures" (applicable to annual periods beginning on or after January 1, 2027);

        NOTES

      • Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary

        Presentation Currency" (applicable to annual periods beginning on or after January 1, 2027);

      • Amendments to IFRS 19 "Subsidiaries without Public Accountability: Disclosures" (applicable to annual periods beginning on or after January 1, 2027).

        The Group is currently evaluating the effect that the adoption of these standards, amendments or improvements to the existing standards and interpretations will have on the financial statements of the Group in the period of initial application.

        Segment information

        The information reported to the chief operating decision maker (ie. the Chief Executive Officer) for the purposes of resource allocation and assessment of segment performance focuses on the following operating segments: upstream segment, gas storage, electricity production and supply, and other activities, including headquarter activities. Information reported to the chief operating decision maker includes revenue, expenditure and investments.

        No aggregation of operating segments has been performed as these operating segments correspond directly to the reportable segments disclosed in the Group's financial statements.

        Specifically, the Group is organized in the following segments:

      • upstream, which includes exploration activities, natural gas production and trade of gas extracted by Romgaz or acquired for resale; these activities are performed by the head office, Mediaș, Mureș and Buzău branches and subsidiaries Romgaz Black Sea Limited and Romgaz Trading S.R.L.;

      • storage activities, performed by subsidiary Depogaz;

      • electricity production and sale activities, performed by Iernut branch;

      • other activities, such as technological transport, operations on wells and corporate activities. Transactions between the companies within the Group are at current market prices.

        Unrealized profits are eliminated in the financial statements.

        Gas and electricity deliveries between Group's segments within the same company are accounted for at market prices. All other transactions between Group's segments within the same company are at cost.

        As the Group's operating segments represent distinct business activities rather than separate legal entities, certain activities performed by the same company are allocated to different reportable segments. Accordingly, internal transactions between these business activities are priced either at market value or at cost, depending on the nature of the transaction.

        Segment information is presented based on accounting information prepared in accordance with MOF 2844/2016.

        Income tax generated by the mother-company is presented in the Other segment. Income tax generated by the other companies in the Group is presented in the relevant segment.

        Interest expense on bank borrowings and bonds of the mother-company is presented in the Other segment, as the borrowing does not relate to a specific segment. Interest expense related to the other companies in the Group is presented in the relevant segment.

        Interest income on cash and cash equivalents and bank deposits other than cash and cash equivalents of the mother-company, if managed centrally, is recorded in the Other segment. If managed by other segments or other companies in the Group, the interest income is presented in the relevant segment.

        Revenue recognition

        1. Revenue from contracts with customers

           The Group recognizes revenue from the following major sources:

      • sale of gas, either from its own production or acquired for resale, and related fulfilment activities (eg. transmission, storage, distribution services);

      • provision of gas storage services, provided by Depogaz;

      • sale of electricity, either from its own production or acquired for resale.

      Revenue is measured based on the consideration to which the Group expects to be entitled in a contract with a customer and excludes amounts collected on behalf of third parties. Revenue is recognized when, or as the Group transfers the goods or services to the customer, respectively, the client obtains control over them.

      NOTES

      Depending on the nature of the goods or services, revenues are recognized over time or at a point in time. Contracts concluded by the Group do not contain significant financing components.

      The Group does not disclose information about the remaining performance obligations, applying the practical expedient in IFRS 15, as contracts with customers are generally signed for periods of less than one year and the revenues are recognized at the amount which the Group has the right to charge.

      Revenue from sale of gas and electricity

      The Group's gas contracts include a single performance obligation which is satisfied upon delivery. The performance obligation includes the gas delivered and the fulfilment activities required to provide the gas to the customer. Revenue is recognized at the time of delivery to the customer and in line with the amount to which the Group has the right to invoice. Gas deliveries are invoiced monthly. Revenue from these contracts is recognized at a point in time on the basis of the actual quantities delivered at the prices fixed in the contracts concluded.

      The Group's electricity contracts include a single performance obligation which is satisfied over the delivery period as the customer simultaneously receives and consumes electricity. Revenue is recognized at the time of consumption by the customer and in line with the amount to which the Group has the right to invoice. Electricity deliveries are invoiced on a monthly basis. Revenue from these contracts are recognized over time for the whole month on the basis of the actual quantities delivered at the prices fixed in the contracts concluded.

      Trade receivables from gas deliveries are generally due within 30 days of invoice issue. These must be guaranteed by customers through bank letters of guarantee. If customers do not provide such a guarantee, they must ensure that natural gas is paid in advance.

      Trade receivables from the sale of electricity are generally due within 7 days of the date of invoice delivery. These must be guaranteed by customers through bank letters of guarantee. If customers do not provide such a guarantee, they must ensure that electricity is paid in advance.

      Revenue recognition from storage activities (capacity reservation, injection and extraction)

      The contracts on capacity reservation and storage concluded with customers are of a binding nature for the customer, i.e. the customer agrees with the Group a storage capacity (the volume and the length of the storage) for the annual storage cycle and has to pay for the whole capacity booked irrespective of the actual capacity used.

      The capacity reservation revenue is recognized over time as a customer simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs. The revenue from injection and extraction services are recognized at a point in time when the services are delivered to the customer and completed.

      Trade receivables from storage services are due within 15 days of invoice issue. Customers must provide a 5% security for the services value.

      1. Other revenue

      Rental revenue for operating lease contracts where the Group operates as lessor is recognized on a straight-line basis over the lease term, in accordance with the substance of the relevant agreements.

      Finance income

      Interest income is recognized as the respective income is generated, on accrual basis.

      Finance costs

      Finance costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets until such time as the assets are substantially ready for their intended use.

      If funds borrowed for general corporate purposes are used for the purpose of obtaining a qualifying asset, the Group determines the amount of borrowing costs eligible for capitalization by applying a capitalization rate to the expenditures on that asset. The capitalization rate is the weighted average of the borrowing costs applicable to all borrowings of the Group that are outstanding during the period. However, the Group excludes from this calculation borrowing costs applicable to borrowings made specifically for the purpose of obtaining a qualifying asset until substantially all the activities necessary to prepare that asset for its intended use or sale are complete. The amount of borrowing costs that the Group capitalizes during a period shall not exceed the amount of borrowing costs it incurred during that period.

      Borrowing costs include exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs.

      Interest on leasing contracts is not included in the computation of the capitalization rate.

      NOTES Contract liabilities

      Contract liabilities are obligations to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration, or the Group has a right to an amount of consideration that is unconditional (ie. a receivable), before the Group transfers the good or service to the customer, the Group recognizes the contract as a contract liability when the payment is made or the payment is due (whichever is earlier).

      Exploration expenses

      The costs of seismic exploration, geological, geophysical and other similar exploration activities are recognized as exploration expenses in the statement of comprehensive income in the period in which they arise.

      Exploration expenses also include the carrying value of exploration assets that have not identified gas resources and have been written-off.

      Foreign currencies

      The functional currency is the currency of the primary economic environment in which the Company and its subsidiaries operate and is the currency in which cash is primarily generated and expended. All companies in the Group, except Romgaz Trading S.R.L., operate in Romania and have the Romanian Leu (RON) as functional currency. The majority of sales and acquisition are in Romanian currency.

      Romgaz Trading S.R.L. is incorporated in the Republic of Moldova and has the Moldovan Leu (MDL) as functional currency. The company is not currently operating.

      In individual subsidiaries transactions in foreign currencies are initially recorded in the functional currency of those entities at the spot exchange rate on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the functional currency at the spot exchange rate on the balance sheet date. Any resulting exchange differences are included in the income statement as other gains and losses; positive exchange differences are disclosed as gains, while negative differences are disclosed as losses. Non-monetary items are not retranslated subsequent to initial recognition.

      In the consolidated financial statements, the assets and liabilities of non-RON functional currency subsidiaries are translated into Romanian leu (RON) at the spot exchange rate on the balance sheet date. The results and cash flows of non-RON functional currency subsidiaries are translated into RON using average rates of exchange. In the consolidated financial statements, exchange adjustments arising when the opening net assets and the profits for the year retained by non-RON functional currency subsidiaries are translated into RON are recognized in a separate component of equity and reported in other comprehensive income.

      Employee benefits

      Benefits granted upon retirement

      In the normal course of business, the Group makes payments to the Romanian State on behalf of its employees at legal rates. All employees of the Group are members of the Romanian State pension plan. These costs are recognized in the statement of comprehensive income together with the related salary costs.

      Based on the Collective Labor Agreements applicable within the Group, the Group is liable to pay to its employees at retirement a number of gross salaries, according to the years worked in the gas industry/electricity industry. To this purpose, the Group recorded an obligation for benefits upon retirement. This obligation is updated annually and computed according to actuary methods based on estimates of the average salary, the average number of salaries payable upon retirement, on the estimate of the period when they shall be paid, and it is brought to present value using a discount factor based on interest related to a maximum degree of security investments. As the employees retire, the obligation is reduced together with the reversal of the obligation against income.

      Current legislation, in force starting 2025, limits to one the number of salaries payable to employees upon retirement; future Collective Labor Agreements will have to observe legal provisions in force.

      Benefits are payable in five annual equal installments.

      Gains or actuarial losses are recognized in other comprehensive income. These are changes in the present value of the defined benefit obligation as a result of statistical adjustments and changes in actuarial assumptions. Any other changes in the obligation are recognized in the result of the year.

      The Group does not operate any other pension scheme or post-retirement benefit plan and, consequently, has no obligation in respect of pensions.

      NOTES

      Employee participation to profit

      The Group records in its financial statements a provision related to the fund for employee participation to profit in compliance with legislation in force, namely Government Ordinance no. 64/2001. According to this, employees may receive one average base monthly salary as a benefit.

      Liabilities related to the fund for employee participation to profit are settled in less than a year and are measured at the amounts estimated to be paid at the time of settlement.

      Provisions

      Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.

      Greenhouse gas certificates acquired

      The Group recognizes a liability for the obligation to settle actual CO2 emissions (provision until greenhouse gas certificates are purchased, current liability after such certificates are purchased, until their inclusion in the Unique Registry of Greenhouse Gas Emissions). The provision is measured at the best estimate of the expenditure required to settle the present obligation at the balance sheet date. The liability to be settled using certificates on hand is measured at the carrying amount of those certificates; any excess emission is measured at the market value of certificates at the period end. The related expense is recognized in the same amount as the liability. Greenhouse gas certificates purchased during the period are those which will be included in the Unique Registry of Greenhouse Gas Emissions. They are recognized as current assets (intangible assets) and measured at cost. When the certificates are included in the Unique Registry, the respective liability is settled and the asset and liability are derecognized.

      Provisions for decommissioning of wells

      Liabilities for decommissioning costs are recognized due to the Group's obligation to plug and abandon a well, dismantle and remove a facility or an item of plant and to restore the site on which it is located, and when a reliable estimate of that liability can be made.

      The Group recorded a provision for decommissioning wells (onshore wells, wells used in the storage business and offshore wells, when drilling is completed, although such wells may not be commissioned by the end of the reporting period).

      This provision was computed based on the estimated future expenditure determined in accordance with local conditions and requirements, if information is available based on historic experience, or based on independent studies, if the Group has no historic information available. The provision was brought to present value using the cost of debt. The rate and the estimated costs for decommissioning are updated annually to include any potential changes and the effect of inflation.

      The decommissioning provision is based on the economic life of the fields wells are located on, even if this is longer than the period of the related concession agreements, as it is considered the period may be extended. Economic life of fields is determined based on studies submitted to ANRMPSG for approval; based on these studies, ANRMPSG approves the reserves available on each field, generating the economic life of such fields.

      A corresponding item of property, plant and equipment of an amount equivalent to the provision is also recognized. The item of property, plant and equipment is subsequently depreciated as part of the asset.

      The Group applies IFRIC 1 "Changes in Existing Decommissioning, Restoration and Similar Liabilities" related to

      changes in existing decommissioning, restoration and similar liabilities.

      The change in the decommissioning provision for wells is recorded as follows:

      1. subject to b., changes in the liability are added to, or deducted from, the cost of the related asset in the current period;

      2. the amount deducted from the cost of the asset does not exceed its carrying amount. If a decrease in the liability exceeds the carrying amount of the asset, the excess is recognized immediately in the statement of comprehensive income;

      3. if the adjustment results in an addition to the cost of an asset, the Group considers whether this is an indication that the new carrying amount of the asset may not be fully recoverable. If it is such an indication, the Group tests the asset for impairment by estimating its recoverable amount, and accounts for any impairment loss.

      Once the related asset has reached the end of its useful life, all subsequent changes of the liability are recognized in the income statement in the period when they occur.

      NOTES

      The periodical unwinding of the discount is recognized in the comprehensive income as a finance cost, as it occurs.

      Taxation

      Income tax expense represents the sum of the tax currently payable and deferred tax.

      Current tax

      The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period, where the Group's subsidiaries operate and generate taxable profit.

      Deferred tax

      Deferred tax is recognized on the differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method.

      Deferred tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such assets and liabilities are not recognized if the temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

      Deferred tax liabilities are recognized for taxable temporary differences associated with investments in associates and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

      The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

      Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

      Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

      Current and deferred tax for the period

      Current tax for the period is recognized as an expense in the statement of comprehensive income. Deferred tax for the period is recognized as an expense or income in the statement of comprehensive income, except when they relate to items credited or debited directly to equity, in which case the tax is also recognized directly in equity, or where it arises from the initial accounting for a business combination. In the case of a business combination, the tax effect is taken into account in calculating goodwill or in determining the excess of the acquirer's interest in the net fair value of the acquirer's identifiable assets, liabilities and contingent liabilities over cost.

      Property, plant and equipment

      1. Cost

         1. Property, plant and equipment

            Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into the location and condition necessary for it to be capable of operating in the manner intended by management and the initial estimate of any decommissioning obligation. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the asset.

            NOTES

         2. Cushion gas

            This is a quantity of natural gas constituted as a reserve at the level of gas storages, physically recoverable, which ensures the optimum conditions necessary to maintain their technical-productive flow characteristics. The cushion gas is recorded as an item of property, plant and equipment in the Storage segment.

         3. Development expenditure

            Expenditure on the construction, installation and completion of infrastructure facilities such as platforms, pipelines and the drilling of development wells, including the commissioning of wells, is capitalized within property, plant and equipment and is depreciated from the commencement of production as described below in the property, plant and equipment accounting policies.

         4. Maintenance and repairs

            The Group does not recognize within the assets' costs the current expenses and the accidental expenses for that asset. These costs are expensed in the period in which they are incurred.

            The costs for current maintenance are mainly labor costs and consumables and also small inventory items. The purpose

            of these expenses is usually described as "repairs and maintenance" for property, plant and equipment.

            The expenses with major activities, inspections and repairs comprise the replacement of the assets or other asset's parts, the inspection cost and major overhauls. These expenses are capitalized if an asset or part of an asset, which was separately depreciated, is replaced and is probable that they will bring future economic benefits for the Group. If part of a replaced asset was not considered as a separate component and, as a result, was not separately depreciated, the replacement value will be used to estimate the net book value of the asset which is replaced and is immediately written-off. The inspection costs associated with major overhauls are capitalized and depreciated over the period until next inspection.

            The costs for major overhauls for wells are also capitalized and depreciated using the unit of production depreciation method.

            All other costs with current repairs and usual maintenance are recognized directly in expenses.

      2. Depreciation

         The depreciable amount of a tangible asset is the cost less the residual value of the asset. The residual value is the estimated value that the Group would currently obtain from the disposal of an asset, after deducting the estimated costs associated with the disposal if the asset would already have the age and condition expected at the end of its useful life.

         For directly productive tangible assets (ie. production wells), the Group applies the depreciation method based on the unit of production (UoP) in order to reflect in the statement of comprehensive income, an expense proportionate with the production obtained from the total natural gas reserve certified at the beginning of the period. According to this method, the carrying value of each production well is depreciated according to the ratio of the natural gas quantity extracted during the period compared to the proved developed reserves at the beginning of the period.

         Assets representing cushion gas are not depreciated, as it is expected that the residual value exceeds their cost.

         For indirectly productive tangible assets and storage assets, depreciation is computed using the straight-line method over the estimated useful life of assets, as follows:

         Asset Years

         Gas properties (others than the properties with UoP depreciation) 1 - 50

         Buildings 1 - 70

         Fixtures, fittings and office equipment 1 - 18

         Plant, machinery and equipment 1 - 30

         Storage assets 2 - 36

         Land is not depreciated as it is considered to have an indefinite useful life.

         Properties in the course of construction for production, rental or administrative purposes, or for purposes not yet determined, are carried at historical cost, less any recognized impairment loss. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

         Items of tangible fixed assets that are disposed of are eliminated from the statement of financial position along with the corresponding accumulated depreciation and impairment. Any gain or loss resulting from such retirement or disposal is included in other gains and losses.

         NOTES

         For items of tangible fixed assets that are retired from use, but not yet written off by the reporting date, an impairment adjustment is recorded for the carrying value at the time of retirement.

      3. Impairment

      Non-current assets must be recognized at the lower of the carrying amount and recoverable amount. If and only if the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset should be reduced to be equal to its recoverable amount. Such a reduction represents an impairment loss that is recognized in the result of the period.

      Thus, at the end of each reporting period, the Group assesses whether there is any indication of impairment of assets, whether at individual asset level or at cash-generating unit level. If such indication is identified, the Group tests the assets to determine whether they are impaired.

      The Group's assets are allocated to cash-generating units. The cash-generating unit is the smallest identifiable asset group that generates independent cash inflows to a large extent from cash inflows generated by other assets or asset groups. The Group considers each commercial field as a separate cash-generating unit.

      All gas storages held by the Group are considered as part of a single cash-generating unit, as the tariffs are set by analyzing the storage activity as a whole, not every single storage site.

      The Group operates a single power plant, which is considered an independent cash generating unit.

      In 2025 and 2024, the Group did not conduct an impairment test in the Upstream segment (both onshore and offshore operations), as it did not identify any impairment indicators.

      In 2025 and 2024, no impairment indicators were identified in the Storage and Electricity segments.

      Recoverable amount is the largest of the fair value of an asset or a cash-generating unit less costs associated with disposal and its value in use.

      Exploration and evaluation assets

      1. Cost

         Natural gas exploration (other than seismic, geological, geophysical and other similar activities), evaluation and development expenditure is accounted for using the principles of the successful efforts method of accounting.

         Costs directly associated with an exploration well are initially capitalized as an asset until the drilling of the well is complete and the results have been evaluated. These costs include employee remuneration, materials and fuel used, drilling costs and payments made to contractors. If potentially commercial quantities of hydrocarbons are not found, the exploration well is impaired in the statement of financial position until the National Regulatory Authority for Mining, Petroleum and Geological Storage of Carbon Dioxide (Autoritatea Națională de Reglementare în Domeniul Minier, Petrolier și al Stocării Geologice a Dioxidului de Carbon - ANRMPSG) approvals are obtained in order to be written off; the impairment allowance previously recorded is released against the cost of the asset. If hydrocarbons are found and, subject to further evaluation activity, are likely to be capable of commercial development, the costs continue to be carried as an asset. Costs directly associated with evaluation activity, undertaken to determine the size, characteristics and commercial potential of a reservoir following the initial discovery of hydrocarbons, including the costs of evaluation wells where hydrocarbons were not found, are initially capitalized as an asset. All such carried costs are subject to technical, commercial and management review at least once a year to confirm the continued intent to develop or otherwise extract value from the discovery. When this is no longer the case, an impairment is recorded for the assets, until the completion of the legal steps necessary for them to be written off. When proved reserves of natural gas are determined and development is approved by management, the relevant asset is transferred to property, plant and equipment other than exploration and evaluation assets.

      2. Impairment

         At each reporting date, the Group's management reviews its exploration and evaluation assets and establishes the necessity for recording in the financial statements an impairment loss in these situations:

         • the period for which the Group has the right to explore in the specific area has expired during the period or will expire in the near future, and is not expected to be renewed;

         • substantive expenditure on further exploration for and evaluation of gas resources in the specific area is neither budgeted nor planned;

         • exploration for and evaluation of gas resources in the specific area have not led to the discovery of commercially viable quantities of gas resources and the Group has decided to discontinue such activities in the specific area;

           NOTES

         • sufficient data exist to indicate that, although a development in the specific area is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale.

      Intangible assets

      1. Cost

         Mineral rights are recognized at acquisition cost.

         Licenses for software, patents and other intangible assets are recognized at acquisition cost. Intangible assets are not revalued.

      2. Amortization

         Mineral rights are amortized using the unit of production depreciation method.

         Patents and other intangible assets are amortized using the straight-line method over their useful life, but not exceeding 20 years. Licenses related to the right of use of computer software are amortized over a period of 3 years.

         Inventories

         Inventories are recorded initially at cost of production, or acquisition cost, as the case may be. The cost of finished goods and production in progress includes materials, labour, expenses incurred in bringing the finished goods at the location and in the existent form, and related indirect production costs (based on the normal operating capacity). Write down adjustments are booked against slow moving, damaged and obsolete inventory, when necessary.

         At each reporting date, inventories are measured at the lower of cost and net realizable value. The net realizable value is estimated based on the selling price less any completion and selling expenses. The cost of inventories is assigned by using the weighted average cost formula.

         Financial assets and liabilities

         The Group's financial assets include cash and cash equivalents, trade receivables, other receivables, bank deposits with a maturity from acquisition date of over three months and other investments in equity instruments.

         Financial liabilities include interest-bearing bank borrowings, overdrafts, bonds and trade and other payables. For each item, the accounting policies on recognition and measurement are disclosed in this note.

         Cash and cash equivalents include petty cash, cash in current bank accounts and short-term deposits with a maturity of less than three months from the date of acquisition.

         The Group recognizes a financial asset or financial liability in the statement of financial position when and only when it becomes a party to the contractual provisions of the instrument. Upon initial recognition, financial assets are classified at amortized cost or measured at fair value through profit or loss. The classification depends on the Group's business model for managing the financial assets and their contractual cash flows.

         The Group does not have financial assets measured at fair value through other comprehensive income.

         On initial recognition, financial assets and financial liabilities are measured at fair value plus or minus, in the case of assets and liabilities measured at amortized cost, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

         Receivables resulting from contracts with customers represent the unconditional right of the Group to a consideration. The right to a consideration is unconditional if only the passage of time is required before payment of the consideration is due. These are measured at initial recognition at the transaction price.

         The amortized cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments plus or minus cumulative depreciation using the effective interest method for each difference between the initial amount and the amount at maturity and, for financial assets, adjusted for any loss allowance impairment.

         Any difference between the initial amount and the amount at maturity is recognized in the statement of comprehensive income for the period of the borrowings or bonds using the effective interest method.

         Financial instruments are classified as liabilities or equity in accordance with the nature of the contractual arrangement. Interest, dividends, gains and losses on a financial instrument classified as a liability are reported as expense or income. Distributions to holders of financial instruments classified as equity are recorded directly in equity.

         NOTES

         Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realize the asset and discharge the obligation simultaneously.

         Impairment of financial assets

         Financial assets, other than those at fair value through profit and loss, are assessed for impairment at each reporting period.

         Except for trade receivables, the Group measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk associated with the financial instrument, has increased significantly since initial recognition. If, at the reporting date, the credit risk for a financial instrument has not increased significantly since the initial recognition, the Group measures the loss allowance for that financial instrument at a value equal to 12 month expected credit losses.

         The loss allowance on trade receivables resulting from transactions that are subject to IFRS 15 is measured using the simplified approach.

         The Group measures the expected credit losses of a financial instrument in a manner that reflects reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

         The carrying amount of the financial asset, other than those at fair value through profit or loss, is reduced through the use of an allowance account.

         De-recognition of financial assets and liabilities

         The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

         The Group derecognizes financial liabilities when, and only when, the Group's obligations are discharged, cancelled or they expire.

         Reserves

         Reserves include:

         • legal reserves, which are used annually to transfer to reserves up to 5% of the statutory profit, but not more than 20% of the statutory share capital of the companies within the Group;

         • development fund reserves, which represent allocations from profit in accordance with Government Ordinance no. 64/2001, paragraph (g); the reserve is set up from net profit, as a balance after all other reserves are set up;

         • reserves from reinvested profit, set up based on the Fiscal Code. The amount of profit that benefited from tax exemption under the fiscal legislation less the legal reserve, is distributed at the end of the year by setting up the reserve;

         • geological quota reserve, non-distributable, set up until 2004. Geological quota reserve set up after 2004 is distributable and presented in retained earnings. Geological quota set up after 2004 is allocated together with the profit allocation, as approved by the General Meeting of Shareholders, based on depreciation, respectively write-off of the assets financed using the development quota;

         • other non-distributable reserves, set up from retained earnings representing translation differences recorded at transition to IFRS. These reserves are set up in accordance with MOF 2844/2016;

         • reserves for investments in strategic projects are set up in accordance with Government Ordinance no. 64/2001 for the difference between the general dividend payout ratio requested by the Government and the lower ratio approved for the Group to support major investments of national interest to increase the energy capacity of Romania.

         Government grants

         Grants are non-reimbursable financial resources given by a government to the Group' companies with the condition of meeting certain criteria. Grants include grants related to assets and grants related to income.

         Grants related to assets are government grants for whose primary condition is that the Group should purchase, construct, or otherwise acquire long-term assets.

         Grants related to income are government grants other than those related to assets. Grants are not recognized until there is reasonable assurance that:

         NOTES

         1. the Group will comply with the conditions attaching to it; and

         2. grants will be received.

      Grants related to assets are presented in the statement of financial position as "Deferred revenue", which is then recognized in profit or loss on a systematic basis over the useful life of the asset.

      Grants related to income are recognized in the statement of profit or loss under "Other income", as the related expenses are recorded. Until the time the expense occurs, the grant received is recognized as "Deferred revenue".

      If a government grant becomes receivable as compensation for expenses or losses incurred in a previous period, the Group recognizes such grant in the profit or loss of the period in which it becomes receivable.

   2. Significant estimates and judgments

   The preparation of the financial information requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the end of reporting date, and the reported amounts of revenue and expenses during the reporting period. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

   The following are the critical estimates and judgments that the management has made in the process of applying the Group's accounting policies, and that have the most significant effect on the amounts recognized in the financial statements.

   Judgment related to revenue recognition from storage activities

   The contracts on capacity reservation and storage concluded with customers are of a binding nature for the customer, i.e. the customer agrees with the Group a storage capacity (the volume and the length of the storage) for the annual storage cycle and has to pay for the whole capacity booked irrespective of the actual capacity used. There is the following customers' business practice in place:

   • not to use the full capacity booked, e.g. inject in the middle of the period of the annual storage cycle;

   • to inject and extract several times during the annual storage cycle;

   • not to extract the whole volume of gas stored at the end of the annual storage cycle, i.e. utilize the capacity with the Group for the next storage period.

   Such situations are not hypothetical, and it is a usual practice that the customer uses such a flexibility according to the market demand and market price for gas (e.g. if the market prices for gas decrease, the customer might decide rather to prolong the gas storage than extract gas for future sale). Management exercised judgment in assessing whether the customer can separately benefit from the injection and extraction services apart from booking capacity. As a result, management concluded that the Groups' promise to provide a capacity for storage should be seen as a stand-ready promise; injection and extraction promise as optional services provided in addition to the booking capacity taking into account past practice of the Group (stated above). Thus, Group's management treats them as three separate performance obligations. The revenue from the stand-ready performance obligation is recognized over time as a customer simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs. The revenue from injection and extraction services are recognized at a point in time when the services are delivered to the customer and completed.

   Judgment related to government grants related to income

   Government Emergency Ordinance no. 27/2022 as subsequently amended (GEO 27) included the obligation of the Group to sell the electricity it produced at a regulated price. According to GEO 27, electricity producers had to calculate a contribution to the Energy Transition Fund. For the period January 1, 2023-March 31, 2024, if the value of the CO2 certificates related to the energy sold at the regulated price exceeded the contribution to the Energy Transition Fund, electricity producers were entitled to receive the excess. Until December 2025, the legislation did not provide for the mechanism to request these amounts from the Romanian State nor the competent authority for the settlement of such requests. As such, the right to receive the grant is not enforceable. The Company initiated legal action for the recovery of these amounts.

   The government does not act as a shareholder or a client of the Group in this matter. As such, the relevant standard considered in the accounting of the grant is IAS 20.

   By December 31, 2025 the Group should receive RON 188,260 thousand. Until the amount becomes virtually certain, the Group discloses the grant as a contingent asset.

   NOTES

   Estimates related to impairment losses on trade receivables

   At each period end, the Group evaluates the risks attached to current and overdue receivables and the probability of such risks to materialize. The Group's receivables are generally due in maximum 30 days from the date of issue. Based on information available at period end and previous experience, the Group estimates the lifetime expected credit loss of receivables, both current and overdue, on a client-by-client basis and records appropriate impairment losses (note 16).

   Judgment related to the exploration expenditure on undeveloped fields

   If field works prove that the geological structures are not exploitable from an economic point of view or that they do not have hydrocarbon resources available, an impairment is recorded. The impairment assessment is performed based on geological experts' technical expertise.

   Estimates related to developed proved reserves

   The Group applies the unit-of-production depreciation method for gas producing wells in order to reflect in the income statement an expense proportionate with the production obtained from the total developed proved natural gas reserve at the beginning of the period. According to this method, the carrying value of each production well is depreciated according to the ratio of the natural gas quantity extracted during the period compared to the gas reserve at the beginning of the period. The gas reserves are updated annually by ANRMPSG-certified internal experts according to internal policies and assessments that are based on certifications of ANRMPSG.

   The estimated developed proved gas reserves are a key input in management's impairment indicators assessment

   of assets within the Upstream segment.

   Periodically, Romgaz engages a reputable international company to perform an independent assessment of its gas reserves, the most recent one being as of December 31, 2023. However, the depreciation of producing wells and the assessment of impairment indicators are based on the developed proved gas reserves estimated by Romgaz' internal experts and certified by ANRMPSG.

   If gas reserves increased by 5%, the depreciation charge of assets depreciated using the unit of production method would be RON 9,944 thousand lower than current levels (2024: RON 8,932 thousand).

   If gas reserves decreased by 5%, the depreciation charge of assets depreciated using the unit of production method would be RON 10,941 thousand higher than current levels (2024: RON 9,857 thousand).

   Estimates related to the decommissioning provision

   Liabilities for decommissioning costs are recognized for the Group's obligation to plug and abandon a well, dismantle and remove a facility or an item of plant and to restore the site on which it is located, and when a reliable estimate of that liability can be made.

   This provision is computed based on the estimated future expenditure determined in accordance with local conditions and requirements and it is brought to present value using cost of debt. The rate and estimated decommissioning costs are updated annually (note 18).

   Costs to plug and abandon a well are calculated as an average of current year's costs actually incurred for such activities. These costs are brought to present value over the period over which the Group believes the field will be economically viable, even if the current term of concession agreements is shorter, as the Group believes there is a high probability it will be able to extend the term of the agreements.

   If economic life of existing concession agreements increased by 5 years, the decommissioning provision would decrease by RON 135,788 thousand (2024: RON 69,137 thousand).

   If economic life of existing concession agreements decreased by 5 years, the decommissioning provision would increase by RON 148,565 thousand (2024: RON 78,437 thousand).

   Estimates related to retirement benefit obligations

   Under the Collective Labor Agreements applicable within the Group, the Group must pay its employees when they retire a multiplicator of the gross salary, depending on the seniority within the gas industry/electricity industry. This obligation is updated annually. It is calculated based on actuarial methods to estimate the average wage, the average number of employees to pay at retirement, the estimate of the period when they will be paid and is brought to present value using a discount factor based on interest on investments with the highest degree of safety (government bonds) (note 18).

   Current legislation, in force starting 2025, limits to one the number of salaries payable to employees upon retirement; future Collective Labor Agreements will have to observe legal provisions in force. See note 18 c) for further information.

   NOTES

   The Group does not operate any other pension plan or retirement benefits, and therefore has no other obligations relating to pensions.

   Judgment on depreciation and expected useful lives of property, plant and equipment

   The energy transition may curtail the expected useful lives of the Group's assets thereby accelerating depreciation charges. However, it is expected that most of the existing assets will likely have immaterial carrying values by 2050. The Group's core strategy is focused on its upstream segment and will continue to have an important part of the Group's activities over that period. Therefore, management does not expect the useful lives of the Group's property, plant and equipment to change. Significant capital expenditure is still required for ongoing projects as well as renewal and/or replacement of aged assets and therefore the useful lives of future capital expenditure may be different.

   If useful life of property, plant and equipment depreciated on a straight-line basis increased by 5%, depreciation for the year would have decreased by RON 8,818 thousand (2024: RON 5,384 thousand).

   If useful life of property, plant and equipment depreciated on a straight-line basis decreased by 5%, depreciation for the year would have increased by RON 9,516 thousand (2024: RON 14,189 thousand).

   Judgment related to impairment of assets

   The Group assesses whether indications of impairment exist both at CGU level and for individual assets.

   Impairment indicators considered at CGU level (onshore and offshore) include: significant changes in developed proved gas reserves, analysis of profitability of existing fields, regulations related to gas prices, regulations on tax environment and decisions to end existing concessions.

   Impairment indicators for individual assets include lack of production, decisions to abandon or write-off an individual asset.

   Impairment indicators considered in the storage segment include decrease of storage tariffs, consistent underbooking of storage capacity.

   Impairment indicators considered in the electricity segment include lower electricity prices, period until the plant will be in operation, level of output, level of taxation impacting the business. The assumptions used for prices are based on management's best estimate, considering specifics of local market as well as the correlation between the local and regional markets.

   Judgment related to the functional currency of Romgaz Black Sea Limited

   The functional currency of Romgaz Black Sea Limited, registered in the Commonwealth of the Bahamas, is the Romanian Leu, as the company operates in Romania and transactions are carried in the Romanian Leu.

   Judgment related to the residual value of the cushion gas

   Cushion gas is recorded at cost. The Group estimates that future gas prices (ie. residual value) will exceed the cost of the cushion gas. Therefore the cushion gas is not depreciated.

   Contingencies

   By their nature, contingencies end only when one or more uncertain future events occur or not. In order to determine the existence and the potential value of a contingent element, is required to exercise the professional judgment and the use of estimates regarding the outcome of future events (note 32).

   Judgments related to the application of Pillar Two

   In December 2023, the Romanian parliament enacted legislation to implement the Pillar Two Model rules. The legislation is effective for the Group from January 1, 2024 and includes an income inclusion rule and a qualified domestic minimum top-up tax, which together are designed to ensure a minimum effective tax rate of 15% in each country in which the Group operates.

   The Romanian legislation includes an initial phase of exclusion from the income inclusion rule for multinational groups subject to the additional tax or national additional tax, by which the tax will be reduced to zero in the first

   5 years of the initial phase of the international activity of the multinational group. The initial phase of the international activity started on January 1, 2024.

   A multinational group shall be considered to be in the initial phase of its international activity if, for a financial year:

   1. it has constituent entities in no more than 6 jurisdictions; and

      NOTES

   2. the sum of the carrying value of the tangible assets of all the constituent entities of the multinational group having their headquarters in all jurisdictions, except the reference jurisdiction, does not exceed EUR 50,000 thousand. The reference jurisdiction represents the jurisdiction in which the constituent entities of the multinational group have the highest total carrying value of tangible assets in the financial year in which the multinational group initially falls within the scope of the law. The total value of tangible assets in a jurisdiction is the sum of the carrying amount of all tangible assets of all constituent entities of the multinational group that are established in that jurisdiction.

   Romgaz Group is a multinational group, as Romgaz Black Sea Limited is a company incorporated in the Commonwealth of the Bahamas and Romgaz Trading S.R.L. is a company incorporated in the Republic of Moldova. However, Romgaz Black Sea Limited has no operations outside Romania, the company being involved in only one project, namely the development of the Neptun Deep project in Romania. Romgaz Trading S.R.L. has no current activity. As such, all tangible assets are located in Romania, which is considered to be the reference jurisdiction.

   Considering the above, the Group did not recognize any additional income tax from the application of Pillar Two Model rules. The Group notified the tax authorities on being in its initial phase of international activity.

   Judgments made in assessing the impact of climate change and the transition to a lower carbon economy

   Romgaz pays special attention to decarbonization policies, to its contribution to achieving the decarbonization targets assumed by the Paris Agreement and to the implementation of the legislation related to the European Commission's Green Deal package. The Company's current strategy for the period 2022-2030 includes a series of directions of action to reduce carbon emissions. Moreover, Romgaz developed a decarbonization strategy through which a framework plan of long-term actions/projects/investments was defined in order to achieve the decarbonization targets. The Company's strategy will also be updated after the completion of the decarbonization strategy, in close correlation with it.

   At the same time, taking into account a series of European legal acts related to the Green Deal policies that came into force in 2024 and which involve a series of obligations on natural gas producers, Romgaz has initiated the following steps:

   1. Implementing Regulation (EU) No. 2024/1735 of the European Parliament and of the Council of June 13, 2024 on establishing a framework of measures for strengthening Europe's net-zero technology manufacturing ecosystem and amending Regulation (EU) 2018/1724 (NZIA Regulation)

      The NZIA Regulation includes a chapter on carbon capture, transport and storage technology, the intention of which is to accelerate and facilitate investments in such technologies.

      It also sets a target of at least 50 million tons of CO2 per year in storage capacity in depleted oil and gas fields and in saline aquifers. In order to achieve this target, Article 23 (1) provides for oil and gas producers in the European Union to create and make available, by 2030, CO2 storage capacities, established by the European Commission and calculated proportionally to the share of oil and natural gas production at EU level between January 1, 2020 and December 31, 2023. NZIA imposes oil and gas producers in the European Union to provide by 2030 a 50 Mtpa CO₂ storage capacity of which Romania is accountable for 10.25 Mtpa, and Romgaz, has a capacity contribution obligation of 4.12 Mtpa.

      In order to implement the requirements of this regulation, and from the perspective of a potential diversification of the Company's business and the orientation towards activities with a low carbon footprint, Romgaz will start an analysis on the opportunity and technical feasibility of transforming depleted natural gas fields into CO2 storage sites.

      At the same time, taking into account the obligation imposed by the NZIA Regulation, the Company will continue the steps towards the implementation of carbon capture and storage (CCS) projects if the technical, economic and commercial studies and analyses demonstrate the feasibility of such investments.

      Romgaz filed with the Court of Justice of the European Union a direct action against the European Commission. The Company is primarily seeking the repeal of Delegated Regulation No. 1477/2025 supplementing Regulation (EU) 2024/1735 of the European Parliament and of the Council and the annulment of Commission Decision (EU) 2025/1479 of 22 May 2025 specifying pro-rata contributions to the Union CO₂ injection capacity objective by 2030 from oil and gas producers in the European Union.

   2. Implementing Regulation (EU) 2024/1787 of the European Parliament and of the Council of June 13, 2024 on the reduction of methane emissions in the energy sector and amending Regulation (EU) 2019/942 (REM Regulation)

   The REM Regulation establishes strict rules for the European energy sector on (i) the measurement and reporting of methane emissions, (ii) the periodic monitoring of installations/equipment to detect gas leaks early and eliminate them through immediate interventions, (iii) the limitation of the release of methane into the atmosphere and (iv) actions to reduce emissions from inactive or abandoned wells.

   NOTES

   The implementation of the REM Regulation represents a challenge for the Company in the context in which the company operates one of the largest and most complex natural gas extraction infrastructures located throughout the country, much of this infrastructure having a remarkable age. However, given the importance of adopting the measures provided for by the REM Regulation both from an environmental point of view and from that of reducing losses and increasing efficiency, the necessary steps were taken to implement the provisions of the Regulation.

   NZIA Regulation and REM Regulation did not lead to the recognition of any impairment on current gas fields or to the reduction of gas reserves. Gas is a transition fuel and management believe such regulations will not lead to accelerated closure of existing fields.

   The Group is monitoring the evolution of regulations at EU and national level and continuously assesses their impact on its activities. Currently, the Group does not consider climate change will have a significant effect on the useful life on property, plant and equipment, decommissioning provision, impairment or other general provisions.

3. REVENUE AND OTHER INCOME

Interest income is derived from the Group's investments in bank deposits.

1. PURCHASE COST OF COMMODITIES SOLD, RAW MATERIALS AND CONSUMABLES

   Year ended

   December 31, 2025

   Year ended

   December 31, 2024

   '000 RON '000 RON

   Consumables used 164,961 157,235

   Technological consumption 39,811 34,877 Other consumables 9,132 7,749

   Total raw materials and consumables 213,904 199,861

   Cost of gas acquired for resale 23,270 24,643

   Cost of electricity imbalances *) 86,574 93,820 Cost of other goods sold 1,526 1,362

   Total cost of commodities sold 111,370 119,825

   *) Imbalances are generated when quantities actually delivered are lower than the quantities contracted. The difference must be purchased.

2. OTHER GAINS AND LOSSES

   Year ended

   December 31, 2025

   Year ended

   December 31, 2024

   '000 RON '000 RON

   Foreign exchange gain 73,225 10,111

   Foreign exchange loss (92,384) (15,532)

   Net gain/(loss) on disposal of non-current assets (16,179) (19,897)

   Net allowances for other receivables (note 16 c) 2,164 (19)

   Net write down allowances for inventory (note 15) (7,371) (6,046) Losses from trade receivables (44) -Total net gain/(net loss) (40,589) (31,383)

3. DEPRECIATION, AMORTIZATION AND IMPAIRMENT EXPENSES

Depreciation and amortization 510,480 489,366 out of which:

• depreciation of property, plant and equipment

  (note 12) 499,492 478,413

• amortization of intangible assets (note 14 a) 6,115 6,978

• amortization of right of use assets (note 14 b) 4,873 3,975 Net impairment of property, plant and equipment,

including exploration assets 176,450 113,791

The tax rate used for the reconciliations below for the year ended December 31, 2025, respectively year ended December 31, 2024 is 16% payable by corporate entities in Romania on taxable profits.

The total current tax expense for the period can be reconciled to the accounting profit as follows:

*) Income tax reductions are calculated according to Government Emergency Ordinance no. 153/2020 which allows for certain reductions in the level of the income tax if equity is positive or if equity is increased against a specific period (2020 level or previous year's level). Reductions vary based on the level of the increase in equity.

Components of and movement in deferred tax balances

OCI - other comprehensive income

*) According to the Fiscal Code applicable in Romania, expenses related to location, exploration, development or any preparatory activity for the exploitation of natural resources, which, according to MOF 2844/2016, are recorded directly in the result, are recovered in equal rates for a period of 5 years, starting with the month in which the expenses are incurred. Also, for fixed assets specific to the exploration and production of gas resources, the carrying tax value of fixed assets written-off is deducted using the tax depreciation method used before their write-off for the remaining period of depreciation, had the asset not been written-off. All of these costs are treated as assets only from a tax point of view and generate a deferred tax asset.

**) The tax losses generating a deferred tax asset relate to Romgaz Black Sea Limited. The Group estimates there will be sufficient taxable profits in the future against which the tax losses will be used. The tax losses generating a deferred tax asset will expire as follows:

*) Additions of capital work in progress include RON 2,807,667 thousand related to the development of the offshore Neptun Deep block (development costs of RON 2,712,744 thousand and capitalized interest of RON 94,923 thousand, representing 46% of interest and foreign exchange losses) and RON 104,934 thousand related to the new Iernut power plant.

**) Including cushion gas of RON 216,343 thousand. No changes were recorded during the year.

***) The impairment recorded during the year refers to individual assets; such assets are fully impaired, as described in note 2.