AS Virsi-A (VIRSI) Earnings Call Transcript & Summary

Dear participants, welcome to Virsi Investor webinar. We will start with the presentation on Virsi business update and continue with a live Q&A session. We are looking forward to receiving your questions. [Operator Instructions] This session is being recorded and will be available shortly after the call. Let me now introduce you to our hosts. Virsi Chairman of the Management Board and the CEO, Janis Viba; and member of the Management Board and CFO, Vita Cirjevska.

Okay. Thank you, Ivan. Good morning from sunny Latvia. It's a beautiful day out there. And hopefully, we will also tell some good and interesting things about our 2025 developments within company, Virsi. So let's maybe begin with a topic about energy markets because, obviously, based on recent developments, energy markets are quite a topic everybody wants to talk about. But if we maybe firstly look back at development in 2025, we see that actually in that particular year, fuel market was actually quite stable. So we had fluctuations in crude oil price between $60 and $80. The highest level was in January '25 when there was some, let's say, economic development optimism in the market, which was also driven by higher demand in oil products and therefore, oil prices were also increasing. But then, of course, tariffs came, also geopolitical tensions at some point eased towards the end of the year. And then actually, this oil price was going down. Probably, if you look at early March '26, that things have changed completely. Obviously, everybody has heard about Strait of Hormuz, which is a strait where around 20% of global oil supply is delivered to markets. And of course, because of issues with the logistics in this state, there are quite a deficit of oil in the market. And we, at least in Latvia and probably also in all European countries, we already see the impact of this oil shortage, meaning that oil prices are going up. And of course, also retail prices are following this increase. So that's about fuel. About natural gas, the year was also in '25, quite, let's say, stable. Prices were between EUR 30 to EUR 50 per megawatt hour. We see that the highest price was actually in early '25 because of relatively cold weather, but they went down towards the end of the year when LNG supply was accelerating to Europe. But if you look at current situation, again, similar to oil, the blockade of Strait of Hormuz Is actually leaving quite a big negative impact to the supply of natural gas. And therefore, natural gas prices have again risen very substantially back to around EUR 50 per megawatt as of yesterday. If we look at the third segment, electricity, we see that it was quite interesting year for '25 for Baltic countries because Baltic countries exited from this Russian energy system. And basically, currently, we are already independent. And of course, that's very good news for Baltics. And also interesting to see that overall, Nordpool prices in Latvia were around 15% lower in '25 versus '24. Some explanation for this is the fact that EstLink 2 cable was restored. And also, we see that the supply of renewable energy, mainly driven by solar and wind is obviously picking up pace and also pushing the prices down in '25. At the same time, if we look at January and February '26, these are actually the months when Latvia at least experienced the highest electricity prices of all time, mostly because the winter was long and also was cold. But let's see what the future brings because obviously, if there is a, let's say, quite rapid spring appearing, then we could see some water supply in rivers, which would also make these, let's say, hydro generations on electricity quite big and try to push down the prices. But overall, I guess, interesting also to note that '25 was a record year in terms of electricity sold in Latvia, which is made from domestic renewable resources. So let's see how it goes. But most likely in this summer, we will also experience some days with negative electricity prices simply because solar parks will be producing quite, let's say, heavily. So that's the overall picture, the big one. On global markets, a very quick run. But now let's focus down to our company to company Virsi saw. As each year, we are revisiting our plan for long-term goals. So currently, we see that our long-term plan is already based on '28. And if we look at what are the, let's say, most significant changes versus previous estimates, let me put 2 things. The first one is that we have actually put more ambition in our number of fuel stations. So if initially, we planned that the number will exceed 90 stations in the next couple of years. Now we see that our plan is to exceed already 100 stations, which is obviously largely impacted by the fact, which we will talk about later about the deal with one of, let's say, fuel chains in Latvia named ASTARTE. And the deal, if it is approved by Competition Council, would increase Virsi network by 19 stations in terms of not buying these stations, but in terms of long-term lease. And the second thing is also important to note that, as you can see, the financial numbers of net profit and EBITDA, let's call it that way, is doubling or more than doubling in next 3 years, which might seem super aggressive. But again, we already doubled our EBITDA in the last couple of years. And why we think we will manage to double it again in the next couple of years is simply because we have invested a lot of CapEx in the last couple of years, heavy CapEx, which should start to generate a good cash flow already from '26 based on 3 sources. So the first one is the new stations, which were opened in the last couple of years. So they are picking up pace and producing good cash flow, but still are not, let's say, running at full capacity. Second is the deal, which I already explained about 19 stations, which is -- which, if approved, should provide additional EBITDA. And also third is our biomethane project, which also should be up and running and generating cash flow already starting from second half of '26. So these are actually the 3 areas where we see this EBITDA will have quite a big boost, if we can say so. So that's on strategic goals. Let's -- let Vita speak about sustainability.

Yes. Well, sustainability, I would say, in Virsi took one way of developing in 2025 and EU level another side. So whilst in EU, we see that in the last quarter of the year, the requirements for reporting have been easing for the companies and also for the Virsi. So we no longer would have to be audited in the future. But before that, there was a plan for the sustainability report to be audited. Right now, it's our free will basically. And in Virsi, it was quite another way around. In 2025, we started a new course for the sustainability let's say, reporting and development and the way we revise our targets, we established 15 KPIs for the year. And we have worked extensively over the company, understanding what are the ways to develop so that this sustainability strategy in the company is for improving and having sustainable business development and also considering all the significant areas in the company. And that quite a lot of overlaps with our main goals, with our strategic goals, and we see this development is really interesting for the company to be sustained in the future. We have done a lot of work analyzing our waste management in the company. That has led us to the less waste, less expenses in the waste initiatives, and we see that there is still potential in the future. Also the fuel station network, if we look at the latter, I would say we are top one if we look at the lower emission refueling options in fuel stations. We have 10 CNG stations and already 31 stations with EV charging points. And we see the potential for developing these alternatives in the future as well. And also, if we look at the S, which is society where we work with the clients or employees and with suppliers, then there has been quite a big shift also in our NPS scores that has led us by changing our loyalty system, analyzing data, also making more focus on the employees. So quite a good shift in the 2025. And also, we can say that our targets set for the 2025 were met. Another thing about the sustainability that we have changed in 2025 is the way we plan our targets for the next years. And we have made this as a part of the budgeting process, a regular budgeting process in the last quarters of the year, where we select the cross-functional teams in the company where everybody revisits their goals and also suggest if there are any improvements and set the goals for the next year. We see that this is engaging and also leading to the results in sustainability.

So let's continue about our next strategic goal, which is development of station network. So I just want to remind that in '24, we opened 9 stations, which is a huge actually number. Mostly of them were built as a, let's say, greenfield project. And therefore, in '25, let's say, this ambition was a bit lower. So we opened 2 stations in 2 beautiful cities in Salacgriva and Kuldiga. And we are very happy that both of these stations are actually already getting good results starting from day 1. And of course, we'll bring even more in this year. We are also reviewing constantly profitability level of our network. So therefore, just to remind, there was a decision made that in middle of the year, we exited 2 convenience stores which were not providing fuel, but simply store products. We saw that the return on capital and those 2 were not, let's say, at the level which we would be willing them to be. But the most important point here, I guess, is actually already happening in '26, early '26. So in February, we already sent a notification to Competition Council where we expressed our willingness to acquire long-term lease for 19 ASTARTE brand stations. And that would, if approved, give Virsi, I would say, big boost in market share, also a big boost in profitability in -- especially in '27, '28. But the plan is that Competition Council probably should make a decision by maximum term, which is June. And if so, then we could actually start investing in those stations and make them completely similar to the same basically stations as other Virsi stations. And by the end of the year, the customer should not actually even see any difference between ASTARTE stations and Virsi stations. So that's a big thing, which we are currently working on, and that is probably the most important thing which will happen in company during summer. So next one, employees.

So as we -- as I stated already before, the employees have been a focus for us through the past years and also this year. And whilst we are growing the team as fast as we are doing, the existing team in the company, they are, let's say, not responsible, but also part of the success to have the newcomers to our team as well trained and as well developed as we want to have them to provide the service for our clients. Over the past 2 years, our number of employees has grown by more than 20%. We see that there has been growth last year, but there has been a huge shift in the 2024 compared to 2023. And that has been a lot of work in developing, training, adjusting and also finding new employees in the new areas. We want to work in the new cities and also in Lithuania as a new country. And we have done a lot. There has been a lot of effort in this process. And we are very, very happy and grateful for the recognition, and we have been named as the best employer in Latvia for the 2025 and CV Market.lv ranking last week, and we are also looking for CV-Online Top Employers nominations, and we want to see the results there, but we are already very happy about the CV Market, and that has been a big, let's say, event for our company and big thing for us. And during this year, we have been not maybe that active in new station opening, but we have done a lot of effort in internal processes and internal environment also for employees. And #1 sustainability project actually for this year has been the office change in Riga. So we have changed the address in Riga and I'd say, maybe for the shareholders' meeting, you would be welcome already to see how we live there. Yes.

Which is a good idea, actually. Okay. So again, next strategic goal is to be #1 in alternative fuel segment. We are actually already #1. So we just have to keep this level. But I guess one important thing is to note that there is a local transport energy law, which finally has been approved by the end of last year. And the good thing about this is that if before, we were not, let's say, in old legislation able to fulfill our green targets as a fuel trader by using biomethane, now starting from January 2026, we can do it. So we can actually use biomethane to fulfill those green targets and to use, let's say, less amount of other biofuels, which are, in our case, more expensive. So that could potentially bring us a good material return. And also, therefore, these 10 stations, which we currently have with regards to compressed natural gas, they are becoming even more important because we will now -- we are already actually providing this biomethane since January 1 in these 10 stations, mostly, of course, for heavy car segment because for light car segment, we have electricity. And electricity is also doing quite well because we have opened 7 new locations with powerful charging I would say, units in '25. And currently, we are already having 31 stations equipped with electricity chargers. But overall, I guess the electricity market is quite still small because 1.6% out of total transport is electricity transport cars, which is obviously quite low at the moment, but of course, still continuing to develop. And very importantly, the last point is just to remind that we have a big CapEx heavy and important project going on in one of our Latvia's north, how you call it, Western regions, let's say, close to Estonian border where we are already in the final stage of completing our biomethane plant development. And we see that everything is going according to the plan. So we think that this will be finalized during first half of '26. And starting from second half of '26, we are already -- we will be able to produce biomethane, already able to sell it to export it. And therefore, we expect already positive impact from this project on our group's EBITDA in second half '26. Yes, next one, just to remind that we are working constantly to diversify our business model. So as you can see, fuel segment is already constituting, let's say, less than 50% of our gross profit. Of course, shops are going with an increasing weight in this gross profit. But once also biomethane comes into the play, this diversification will be even more. So we are happy about that our business maybe is not so much dependent only on fuel as it was case maybe 10 years ago when 80% or more of gross profit was coming from fuel. Currently, we see that this -- there is a decrease in fuel weight because other segments are growing even faster than fuel.

Yes. And then to the EBITDA, that is one of the most attractive units for the shareholders as such. And we can happily say that this has been the record year for Virsi, and we have reached EBITDA of EUR 15.2 million, and there has been an increase compared to 2024 by 10.8% or EUR 1.5 million. Also, we are happy about the result because we see that this result comes from the new fuel station network that is stable in performance. And this is still in a runoff phase or warming up in 2025 because the stations were mainly built in 2024 and some of them only in the end of 2024. So they are just warming up and making their performance better from period to period. And we see that the fuel sales have increased and also in the gross profit and also the convenience stores gross profits have grown by 11.7%, reaching already a very stable position as the #1 business in our portfolio. Worst situation has been with the energy gross profits due to the balancing cost, but we will elaborate more on the next slides to continue. There has been an increase in the cost of sales and all these sales costs were mainly related to the employees and to the maintenance of the new fuel station network, but we see that these cost increases are weighted out by the gross profit increase and is stable platform for the next period. So this has been a great year. And also, we see that the trend is good for the next period. This minus in the energy segment is also worked on for the next periods. And in 2026, we see that the risks that were there in 2025 are already mitigated as much as possible, and we see the potential in this particular segment as well. Yes. And the net profits -- and net profits has grown by almost EUR 1 million or EUR 0.9 million and by 18.5% compared to 2024. If in the past periods, we actually spoke a lot about the financial instrument from the electricity agreements contracted for the period 2023 to 2027, then in this period, we can already say that these valuations of the financial instruments, they become less and less significant because the terms for these agreements are already close to the end, and there are not much of effect. There has been a decrease in costs and the net effect for the year 2025 have been EUR 151,000. So quite insignificant compared to the other numbers. we see that the best -- the greatest increase have been in EBITDA that we already discussed. And the cost side, the increase were in depreciation. And this depreciation is mainly related to the new stations where 2025 has been actually the first year where we see the stations in full amortized from the big development year in 2024. So this has been quite strong also in respect to the net profits, and we see the base good for the next periods.

Yes. So let us briefly touch each of those 3 main segments, which we have in business. So let's start with fuel. So what is happening in fuel. As you can see, we are growing much faster than market is. So if market was growing by roughly 2% in '25, we are growing more than 10%, which is obviously making the case that we are increasing our market share quite strongly, and we are obviously happy about that. Meanwhile, of course, there is quite intensive competition still in the market. Of course, there is some consolidation happening, but still, let's say, each liter in B2C or B2B segment or each liter of fuel, you have to fight for it. It's not easy, but we are happy that we are able to do it. And I guess also with regards to future, we see that this market share should grow in future as well simply because several of those new stations, which we have already built, they are still not at full operational capacity. And secondly, because if approved, the deal about 19 new stations, that will obviously will bring a big boost to these market shares as well. And also important note about our Lithuanian business is that year '25 was the first one when -- let's say, this excise tax duty on diesel product was actually for the first time, I guess, in many years in Lithuania becoming more expensive than in Latvia, which means that most of Lithuanian B2B transit customers, they are not fueling in Lithuania anymore, but doing it in Latvia, Estonia or maybe in Poland. And this, of course, have reduced, let's say, our ambition to grow in Lithuania, let's say, so aggressively as we thought initially. But we are still thinking what would be the correct way to expand Lithuania. No decisions made yet. But of course, we are, let's say, evaluating several options. And the final point is simply just to remind, which is maybe bad news for fossil fuels is that cost burden will increase because of excise tax, because of regulations, also including ETS 2, if it is approved, that will, of course, increase the cost for fossil fuels. But that, at the same time, is quite a good news for alternative fuels, where we are also a leader in Latvia, meaning that alternative fuels like CNG or biomethane or electricity will continue to develop, and we are actually ready to take this opportunity to, let's say, capitalize on this opportunity.

And convenience stores, so business #1, actually has been experiencing quite challenging period as well from the external side. We had made this huge shop base during 2024, and we were setting the goals for 2025. Very beginning of the year was quite slow in respect to the macroeconomics and the purchase activities in the market and also some regulations in Latvia were sort of changing our way to approach the shoppers, and that was mainly in respect to the tobacco and the alcohol. So that quite changed our store clients and the way they behave and the way the transactions flow through the fuel stations or regular shops. But well we managed it quite well. Also during this year, we set up the goal to see the transaction efficiencies. One of the ways was to analyze the customer data and to have the best loyalty offer for our clients. Another one, as Janis already mentioned, we had evaluated the last year projects that were shop without fueling in Terbata and Origo, and we made a decision to close the shops as that was not performing quite as well as we expected. And also, we have evaluated and set some future potential changes in our IT systems and internal processes for the next years to come to understand how to give the best offer for our clients in loyalty system-wise. And we see that all these efficiencies have driven also our turnover to grow by 12%, whilst market with Virsi together was still at 3.3%, which is a bit better than, I'd say, in the fuel side in the market, but still quite low. And we see that our direction is right, and that also ends up in our financial figures.

And the last is our smallest business segment, obviously, energy segment. A couple of points here. I guess the first one is that we are continuing to grow strongly in private customers, electricity segment. So more than 50% increase in 1 year. Currently, we are already fourth largest player in the market. There is, of course, quite significant gap between top 3 and the fourth place, but we will continue to drive this gap down. On B2B segment, I guess, important to note that we are also having a healthy growth of around 16%, which is quite, in our mind, let's say, careful and healthy, let's say, growth. And also important to note that in '25, it was the first year when we started selling natural gas to B2B customers. With regards to households, we have not yet made a decision simply because there are a couple of private persons in test, let's say, test which we are kind of providing this product. But we have not decided to enter a household market as such currently because it makes quite a big investment in our IT systems and also takes quite operational work from employees. So not yet there to enter this market. And also, I guess what is already was explained by Vita, I will again also try to emphasize that it was quite a challenging year for energy segment in terms of gross profit. And the main problem, obviously, was this huge, unexpectedly huge balance in cost of electricity. And because we had in '25, quite a big portfolio of solar parks, then obviously, in those summer days when they were producing a lot of energy, but maybe there was some deviations between planned and actually produced energy amounts. We had to buy this difference in balancing market, and it was quite costly for us to do that. And because of that, we already reevaluated our, let's say, energy portfolio, and we made a decision that we will reduce very substantially our dependence on solar parks. We made a decision that we will also exit a couple of other producers, which we work with simply to improve this profitability in '26 much, much better than it was in '25. So here, now financials.

Basically, we already had this drive to land in these financials for this year. And this particular slide will give you some presentation on how we have grown as a fuel station network. We see that actually our fuel stations have grown from 73 to 84 over the past years. We see that our CapEx has increased by quite significantly over the past years from EUR 16.8 million in 2023 to EUR 21.2 million in 2024. 2025, as we discussed, it was less about fuel station and investments in our regular business, but more of portfolio diversification that came in Naukseni as biomethane plant was developed. So we see the potential there also in the next years. Employee base has grown by more than 20% from 756 to 919 in the last year, and that has drawn our financial ratios also up over the past years. We see that at this moment, our balance sheet and ROI and equity to assets ratios, they are quite stable for our future new development plans announced. And we see that we have a capacity to maintain the development as planned in the strategic goals.

And I guess reaching the final slide, just 2 key, let's say, items which we would appreciate if you would remember, I think that '25 was a strong year for us, given our huge investment which we have done in recent years. So we basically achieved highest market share turnover, also highest EBITDA number in the history of the company. And we managed to do that despite quite challenging conditions on Latvia's economy because GDP growth was very low. We opened 2 new stations in 2 beautiful cities. We also are now awaiting approval from Competition Council on getting this long-term lease on ASTARTE brand fuel stations, which we -- once this approval is received by the end of the year, those stations will be completely rebranded, completely renovated to be at the standards of Virsi network and should already provide a big boost on our market shares in the future. And also the Transport Energy law, which already explained that it is a good thing for us because we will now be able to fulfill our green targets by biomethane. So we will not need to use maybe more expensive biofuels from other fuel providers, which was the case in the last years. And finally, also important to note that our biomethane plant is up and running according to the schedule. So starting from second half of '25 -- sorry, '26, this should already provide a good financial impact to our group numbers. So we are, I guess, pretty done with the key material. And from my and also Vita side, a big thank you also to our employees for a quite exciting year, but even more probably an exciting year in '26. And also thank you for investors about being with us, being patient and kind of being together with us on this journey. So now I guess it's time for questions.

[Operator Instructions] We will start with the questions that have been submitted prior to the call. After completing gas station expansion target, what will be the next big thing for Virsi to pursue?

I like this question very much. Thank you because it's quite a good one in terms of our future ambitions. But I guess the point is right that if we receive this approval on this new, let's say, long-term lease about 19 stations, then we are actually very close to the level when we will probably slow this expansion of network significantly because we will already be #1 in LATAM market. So what's next? After that, I guess, we will continue to work on this business model diversification. Big focus, obviously, will be biomethane projects. We have one project, as you know, already. Another one we have under development and probably there could be others. and also energy segment. So I guess the next big thing is simply to continue to work on our business model diversification. And in parallel to that, I guess, to deliver these quite ambitious financial numbers, which we already spoke about.

How much AI are you using to boost efficiency? What processes have you automated?

Well, actually, during 2025, AI has been one of the trainings we have for our employees in different kind of ways for the fuel stations with their questions also for the administration. And right now, each and every team, they find their own ways, own processes, how to use it the best in their teams. And we are also investigating the ways to improve also the customer experience with Virsi services through AI, but that's still to come. And we see that there is a potential, but we also need to think that has not -- that should not become like a main thing and that should be also used efficiently and wise.

When is it expected for the Competition Council to allow the lease from ASTARTE? How many will transform the Virsi brand?

So we submitted a formal letter to Competition Council on February 19. And based on local regulations, they have to give answer within a period of 1 month up to 4 months. So if we model, let's say, worst case, then it should be roughly June 19 when they should give final answer. But of course, we hope that somehow we can speed up this process, but of course, it does not depend on so much on us rather than on this Competition Council. As to how many stations will transform to Virsi brand. So as we already mentioned, 19 stations, all of them will completely be in terms of Virsi quality, Virsi brand, Virsi assortment, Virsi, let's say, everything. And yes, nobody will even notice a difference between Virsi stations, which we already have and the ASTARTE stations, which we hope we will have after approval.

Is the growth potential sufficient relative to the risk?

That's the thing we evaluate from project to project, and that's why actually we have this mix of new projects and greenfields like Livland and also with a fuel station network that is a core and the base that generates less riskier business for us because we already know the thing and know the process. So we see that it's -- we're in a good point right now, yes.

Was there anything exceptional in second half of the year that's allowed to reach EUR 4 million in profits? It is much higher than in first half.

I can comment simply that actually good news is that, no, there was nothing exceptional. It was organic growth, which we already told about in previous webinar that we see that all those new stations which we built in '24, they are now picking up pace going more on this, let's say, maximum operational capacity, still not yet there, but we are closing it. And they are delivering simply. I guess that was the main reason why second half was stronger than first half.

Operating expenses were broadly flat year-over-year in second half. Given station expansion, where did the savings come from?

No, I'd say that also quite relates to the previous question, it's about the station network. And we were developing station network during 2024 and many of the stations were already there in the first half of 2024 and in the middle of the year. So in the second half of the year, if we look at the employees that were onboarded before the station opens and trained and basically payroll was paid and also the supporting functions were there. So these costs were there in 2024, but the profits came in 2025. And from -- as Janis said, from warming up to the better ratios already in the second half of the year, yes.

The group has made its initial investment in Lithuania. What are current plans and aims to further expand into the other Baltic countries?

Yes. It's a tough question because as I mentioned about excise tax, which is now for diesel higher in Lithuania and Latvia. So we don't see much B2B transit customers filling up in Lithuania rather they go to Latvia and other countries, which has a negative impact on our, let's say, ambition to expand this network. But at the same time, it does not mean that we will stay with this one station. So we know that our homework is somehow to structure the strategy in Lithuania. We are working on it, but I cannot tell probably today exact plans.

About ASTARTE, if the plan is to fully rebrand to Virsi and not keep trading under name ASTARTE, how this rebranding will be funded? What will this project do to debt equity ratio?

Well, I'd say the good thing about this project is the way we structure the transaction so that there is the long-term rental. And the other side is where we finance the investments. Basically, the project is so much extensive in our understanding and our capacity of our own employees that we will basically switch some of our current projects to ASTARTE project if the approval comes to us. And basically, the investments will still be in a measurable and normal level for us to develop as the previous years. So we had -- of course, in this first period of time, the debt-to-equity ratio will be increased. And that will be mainly not from the investments that we will have in this period, but mainly from the IFRS 16 treatment in our balance sheet, but that is already negotiated with the financiers and the banks, and that will be mainly like IFRS 16 effect on debt-to-equity ratio, yes.

Any chance you could share the CapEx numbers per station for ASTARTE stations, given that most of the infrastructure is in place?

It varies from station to station. We will not disclose specific plans, and then we are actually not even able to see that the full prospect right now up to the detail we have our -- from the first site, as we can see from the client shows, we have the estimates, but they are not public for us to comment, yes.

Is it realistic for energy segment to break even in 2026?

Answer is definitely yes. And what I'm very sure about that is simply that already in '22, '23, '24, actually, the segment was delivering several millions in total profits. '25, I would actually say, was a bit negative exception year simply again because of those balancing costs and because of our dependency quite big on those solar parks. Currently, this issue is solved. It should not repeat. So if you take this negative impact about solar parks and balancing cost out of this, let's say, formula, then I have no doubt that in '26, it should be breakeven at least, but most likely already profitable.

In EBITDA slide, what is in cost of sales, given gross profit is after direct cost of sales?

Yes, I noticed this one, too. There's a problem with the translation. So basically, these are sales costs rather than cost of sales. So these are sales costs, costs for selling. And basically, that is the fuel station network infrastructure maintenance and the sales employees that we have in the stations that are the core costs in this block.

What is Circle K or other major players doing to respond to Virsi eating into their market share?

Good question. Yes, I can confirm that we are eating their market share, definitely. So probably I'm not happy about that. We don't honestly see big, let's say, actions or movements or whatever else from the competition currently. I don't, of course, know what the future strategy looks like. But I would also say that probably it does not impact our actions. We just go along with our strategy. We are quite aggressive, quite ambitious, quite moving fast. And if competition is slower and less ambitious and whatever else, we are only happy about that.

Considering changes in ESG, omnibus changes in EU, does this plan to prepare the ESG report in accordance with ESRS for financial year 2026? And is it planned to be audited?

So for 2025, we have already published the report. And for 2026, basically, the plan is to maintain the level as it is now in 2025. This is a very good comment about the omnibus. And as we see that these requirements about the omnibus -- from the omnibus and also the audit, they are, let's say, becoming easy on the company. So we see that there is a more efficient way to, let's say, put these costs in real action or do the real thing in ESG projects rather than, say, administrate the report and the additional audits. So we plan to maintain the report in the level as it is right now. Also, we follow the ESRS guidelines. And we are not planning to audit, but we are planning to keep up the work we have set up for our company.

At a given moment, the last question that we have received, what impact do you anticipate from Israel, U.S., Iran war in first half of 2026?

Super tough question because, of course, nobody knows what will happen, how long it will happen and, let's say, scope of it. I can just say that potentially for all fuel traders, there could be a big challenge in March simply because the cost of fuel in, let's say, global markets is increasing at a higher speed than fuel traders can actually transform this increase in our retail prices. That is currently what we see a challenge. But other from that, it's difficult to, yes, forecast what will happen. I can just maybe state that we don't have any, let's say, reason to worry about deliveries of oil products to Latvia and to Virsi specifically, we are super confident that, that will not be a problem.

This was our last question. Participants, thank you for your interest. Thank you for joining us today. We will be looking forward to meeting you in our next events.

Thank you.

Thank you.