Photon Energy N.V. (PEN) Q4 FY2025 Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. I've the pleasure of welcoming you to the quarter 4 2025 results conference of Photon Energy N.V. To my left is our CFO, Stanislav Zeman.

Good morning.

And we will run you through our results presentation where we start with the business results, which I will do. Stanislav will run you through our financial results. And we will then focus also on the past guidance and the topic of the equity ratio, which is relevant for our bond covenant. Starting with the business results. Electricity generation, our portfolio of power plants remained stable last year with the only exception that we added 5 megawatts of new generation capacity, 3 new power plants that were connected in the first quarter of last year in Hungary. And as some of you may remember, we disposed off our Australian assets in the fourth quarter of 2024. So last year, we had no additions, but except for the first quarter and -- but also no disposals. Looking at the fourth quarter -- apologies -- we had a decline in generation, which on one hand, was owed to the fact that we did not have the contribution for the Australian assets, at least partially because they only -- they did contribute to the Q4 generation results in 2024. But most importantly, we suffered last year from the temporary shutdowns, but also the limitation of production on many of our Romanian assets. And the most significant impact came from 4 power plants, which are Aiud, Teius, Faget 3 and Sahateni with a total capacity of 24 megawatts. So the good news is that Faget 3 obtained its license at the end of last year, and Aiud and Teius obtained their license last week and will start contributing as of next Monday. In the case of Sahateni, we are still waiting for the license and it's currently foreseen to be obtained in the month of May. So as a result, you can see that the most significant shortfall against plans comes from the Romanian market. In all other markets, we were slightly behind the expected generation volumes in the fourth quarter. As you can see on one hand, we had a reduction in the volume. On the other hand, because of the disposal of the Australian assets, which were running on a merchant basis and had relatively low prices compared to energy prices in Europe, and of course, very significantly lower than those generation assets that are benefiting from feed-in tariff schemes in Europe, our average per megawatt increased and to a large degree compensated the decline in volumes. So we had a 34% increase from a weighted average of EUR 136 per megawatt hour to EUR 182. What you can see in Australia is still a rooftop power plant with 200-kilowatt peak that is running on a feed-in tariff that is receiving EUR 176. But you can see that the bar for Australia for the fourth quarter of 2024 that was, of course, dominated by our utility scale assets, which we disposed of in the fourth quarter. So you can see the difference supporting what I said before. So in the fourth quarter alone, we generated EUR 2.8 million from electricity sales, which year-on-year is a 15.5% decline. And again, to a very large degree, driven by the sale of the Australian assets, but also a result of the limitations of production in our Romanian portfolio. Year-to-date or for the full year, our electricity generation revenues reached EUR 23 million, which represents a 7% decline year-on-year, again, impacted by the factors I just mentioned. The estimated loss of revenues in Romania for the full year 2025 is about EUR 2.5 million. So this is -- these are revenues that we did not generate but would have generated if we did not have these limitations on production, which are of a regulatory nature. So a very significant impact and these are revenues that do not have additional costs against them. So they would have flowed through the P&L fully to the bottom line. In Romania, the impact -- sorry, in Hungary, the impact of regulatory changes, which as of January 1, 2025, came in the form of a freeze of the indexation of the feed-in tariff, the impact is much less severe, but still reaches EUR 131,000 for the full year of 2025. The EBITDA in the generation segment as a result of the lower revenues declined from EUR 2.7 million to EUR 2.4 million. So we had a volume decline, prices that we realized in the fourth quarter and the details you have you can find in our quarterly report could partially offset the lower volumes. In terms of our portfolio composition, you can see that at the end of last year, just like at the end of 2024, it is almost 50-50 balance between assets that are in some form of feed-in tariff and that applies to all of our assets in the Czech Republic, Slovakia and the vast majority of assets in Hungary. The balance in Hungary and all our assets in Romania are running on a merchant basis. The next segment is Engineering, where we had after the completion of our project in New Zealand and due to the delays in the commencement of construction of an EPC project in Romania, a year-on-year decline in revenues, quite significant. But as you can see in terms of consolidated EBITDA, we swung from a loss in the fourth quarter of 2024 to a positive EBITDA in 2025. And also thanks to a -- after a relatively difficult year in the C&I segment in Central and Eastern Europe, a positive acceleration, which we also expect to continue in 2026. Here it is very important and these are relatively fresh news. We have announced that we are exiting the C&I -- our C&I activities in the Australian market. And in this context, we put 3 of our subsidiaries that were jointly executing projects in this space for external customers into voluntary administration. And this is a process that takes typically 4 to 5 weeks. So we are now at the end of the first week of this process. The goal is to find a solution where the business most likely in the hands of a new owner will continue. And there are discussions ongoing. And we believe that in the next 1 or 2 weeks, we will have clarity and of course, we will communicate to the market. Our presence in the C&I space in Australia has been quite difficult over the last 2 to 3 years. And in 2025 on the back of approximately EUR 6 million of revenues, we had a negative EBITDA impact of EUR 1.5 million, which with this exit should not be recurring and therefore, contribute to our planned improvement in EBITDA going forward. In New Energy, we had year-on-year a significant decline in revenues, so based on partially lower capacity. So the contract capacity in the fourth quarter was 282 megawatts compared to almost 400 in the same quarter in 2024. The balance in the decline was a reflection of lower prices compared to 2024 in the fourth quarter. The second area of activity of New Energy is trading in -- primarily the offtake of electricity from renewable energy sources, predominantly solar, to some extent also wind. And specifically in Hungary, also the supply of electricity to external customers, which are typically SMEs. And here, as you can see, we have been able to grow our activities in the fourth quarter, our business volumes. So year-on-year, we had a 50% increase in the volumes of electricity that were traded. For the segment as a whole, unfortunately, year-on-year, we have a negative result in the fourth quarter of minus EUR 2.5 million, which relates to 2 events. One is, in its nature, a one-off fine of approximately EUR 700,000 that we got from PSE in relation to the capacity market testing. However, the much bigger impact is -- and here, again, I refer to public information that we provided earlier this week, that our dispute with PSE, the Polish transmission system operator, who is our client in the area of capacity market, is accelerating. And the background to this is that PSE is of the opinion that some of our clients in one of our largest capital market -- sorry, capacity market units of 50 megawatts were not compliant with emission rules based on their deployment and use of diesel generators. And we believe that this is not the case. So when PSE basically sent us a statement in the second quarter of last year, we disputed that. This dispute went to the Polish regulator who's sided with PSE. However, we still have the legal path towards the courts, which is something we initiated on the 17th of December. And it has been our understanding and our legal understanding, the legal opinion we obtained is that any -- that as well as mentioned as well is that if there's a failure in adhering to the emission limits, the entire unit needs to return the remuneration received in a given year. This dispute relates to revenues from 2024. So it is our understanding that this consequence of having to return the revenues is only valid once we are at the end of the legal process. It means there's a binding ruling by the court and in this case, an administrative court. And this is how we -- we feel very strongly about our view of the facts, and this is why we're also trying to -- we're also treating this liability as a potential liability probably 3 to 4 years down the road. However, we have been informed by the PSE that from our point of view, unlawfully, they want to offset this return of revenues with ongoing revenues that we are invoicing to PSE and we received information that they want to start doing so as of the January invoicing, which is due on the 2nd of March, that means next Monday. This is something we strongly disagree with. We have informed PSE about our view, and we've also sent a motion for an injunction to the Polish courts. So we will see in the next couple of days how this situation develops. However, this acceleration of this topic has forced us to fully reflect and create a 100% reserve for this disputed amount, which is the main reason why the result for the fourth quarter of 2025 is minus EUR 2.5 million. We will get to this topic a little bit later. In operations and maintenance, we have had, as you can see, a significant increase in our business volume year-on-year from just shy of 900 megawatt peak to over 1.2 gigawatt. In the fourth quarter itself, we only added 8 megawatts. However, there were assets that were taken over and put, and we started the O&M just at the beginning of the first quarter. So then the growing trend there is continuing, and we see strong demands in the majority of markets here. What I'd like to add is that we are, at this point in time, the only O&M photovoltaic or an end provider that covers the entire region of Central and Eastern Europe. So in our 5 core markets, Poland, Czech Republic, Slovakia, Hungary and Romania, we are the only player who is active with their own teams in all these 5 markets. And here, we can see a lot of interest by investors from within the region. But of course, there's a lot of investors from outside the region that invest into assets across multiple markets. And the number of these players in our client list and not only in relation to one market but where we cooperate on 2, in some cases even 3 markets, is growing very dynamically. So what is also developing very well is in Hungary and now in Romania, we are offering and in the case of Hungary, already providing asset management services. So that means we are not contracted as the O&M provider, but we're also providing asset management -- or recurring asset management and actually controlling the O&M provider. And a new area to which we are getting ready and we are in discussions is battery energy storage systems, where we are in discussions to provide also O&M and in other cases, asset management. So the growth going forward will not only come from photovoltaic, but also from BESS. And the pipeline of BESS projects across the markets that we cover is growing very dynamically. So this business line, we expect to follow this trend and become a more significant contributor in the next quarters and years. In terms of external revenues, the fourth quarter -- and here external revenues means that the revenues that our own power plants pay to our O&M division is excluded. However, on the cost base only variable costs are excluded. So in terms of external revenues year-on-year, you can see basically a flat line. This is, however, driven by a significant volume of one-off revenues that were generated in Q4 to do some repair work for 2 external customers, which boosted the Q4 revenues in 2024. So adjusted for that, there was a growth in line with the contracted capacity. And in terms of external EBITDA and you can see that the loss was reduced year-on-year from EUR 650,000 to EUR 280,000. This exclusion of group internal revenues, of course, has a very significant impact. And as you can see in the report for the full year, if we add back our internal revenues for which, of course, there are corresponding fixed costs as well, we actually, in this business segment, generated an EBITDA of over EUR 500,000. Then the next business line is Technology Trading, where we are acting as a wholesaler for photovoltaic modules, inverters and battery and some other elements of balance of system, which, however, are rather minor. And here, you can see that in terms of volumes, particularly modules were very active in the fourth quarter of 2025, and when you look at the external revenues, which showed a relatively small increase. However, the increased volume in modules compensated the lower volumes in inverters and batteries. And what we, of course, appreciate most is that the EBITDA and -- the external EBITDA and group internal revenues are very, very small for technology. So well over 95% of volume goes outside the group. You can see a turnaround from minus 600,000 in the last quarter of '24 to a positive contribution of EUR 400,000. Here, we see in this business line, we now see growing prices, particularly for modules, driven by changes in the export supported by the Chinese government. And that is also allowing an increase in margins that we are able to generate in this business segment. So, so far, year-to-date, we are seeing a very positive development. And as far as we can see, which means that up to the end of the second quarter, beginning of the third, we seem to have some good tailwind in this business line, which concludes my overview of the business. And I'm handing over to Stanislav to guide you through our financial results.

Thank you. Thank you, Georg. So on Slide 12, you can see the financial results. As you can see, the consolidated revenues in Q4 2025 were more than EUR 18 million. It means that it was 29.7 percentage year-on-year decline. Revenues from electricity generation totaled EUR 2.8 million due to weaker output. Other revenues decreased to EUR 15.2 million, as you can see with the sharpest decline in Engineering and New Energy segments. EBITDA was minus EUR 3.4 million compared to minus EUR 2.2 million in Q4 2024, affected by a EUR 3 million to EUR 2 million provision related to the dispute with the Polish TSO, respectively PSE, as Georg mentioned before. Raw materials and consumable expenses totaled EUR 7.8 million. Personnel expenses were EUR 4.2 million, which is minus 11.5% year-on-year driven by the lower headcount. Other operation expenses amounted to EUR 9.4 million. Other comprehensive income, EUR 5 million, mainly from a positive PPA revaluation. And total comprehensive income EUR 2 million minus, an improvement compared to minus EUR 4.2 million in Q4 2024, as you can see. Next, please. Balance sheet's overview. Fixed assets increased to EUR 223 million from EUR 216 million, mainly due to commissioning of 5.1 megawatt peak in Hungary and land revaluation. Current assets dropped to 47, driven by reduction of inventories assets held on sale and cash and liquid assets. Equity fell to EUR 52 million, down for EUR 7 million roughly year-on-year due to the full year loss. Adjusted equity ratio, we have 25.1% after regulatory carve-out adjustments. Long-term liabilities increased slightly to EUR 169 million, mainly due to loan reclassification and higher deferred tax liabilities. Current liabilities rose to 48 million. So it's briefly about the balance sheet. Please the next slide. Cash flow. Operating cash flow is EUR 6.2 million versus EUR 6.8 million in Q4 2024, supported by noncash items included in the quarter's results. Investment cash flow is minus EUR 1.6 million, reflecting project development and development expenditures. Financing cash flow, sorry, minus EUR 5.1 million due to interest payments and loan repayments. Cash position at the end of the year 2025 is EUR 3.2 million.

Thank you, Stanislav. In the next segment, we'd like to comment on the actual results versus our guidance in 2025 -- for 2025, where we guided revenues of EUR 100 million and an EBITDA of EUR 9 million. And as I was explaining earlier, one of the -- the main item that had an impact is the provision, the full provision against the disputed amount with the Polish TSO of EUR 3.2 million, and that is based on the previously explained acceleration of this matter. We are forced to make a full provision, which amounts to the vast majority of the difference between the guided EUR 9 million and the reported EUR 5.1 million. So this happened at the very late and towards the end of our -- just before we are publishing the accounts. What you can see on this slide is we are listing items that, in our view are of a one-off nature, and we are confident will not repeat in this form that have significantly depressed our revenues. So it's clearly the EUR 3.2 million disputed amount with the Polish TSO. Also in total for the year, EUR 1 million fine from the TSOs with the most significant being recorded in the fourth quarter of approximately EUR 700,000. We unfortunately also ended the EPC project in Pukenui in New Zealand with a EUR 1.3 million loss. So this project is completed and will not reoccur in 2026. But we also booked write-offs of intangible assets, most significantly related to software with a total amount of EUR 1.2 million in 2025. And we also wrote off the remaining value of our project pipeline in Poland. This was a relatively large portfolio of smaller projects. So if we adjust for these one-off items, then we would have been able to actually outperform the EBITDA guidance. We did not include on this slide the impact of the lower electricity sales revenues in Romania, which impacted us by EUR 2.5 million. We also believe that we will still have an impact, as I was explaining before, we only obtained licenses for Aiud and Teius at the end of February. So clearly, we don't have revenues for these 2 power plants for the first 2 months. Sahateni, which is a 7-megawatt power plant, so quite significant in our portfolio will only most likely start generating revenues in May. So there will still be an impact from these regulatory changes, but it will be significantly lower. But at this point, it's very hard to assess whether this will be -- what it will amount to. However, again, everything else being the same, that means these power plants being in our portfolio, there is -- should be a much more significant contribution to our top line and EBITDA from a resolution of this delay in obtaining the generation license. So also increasing our earnings power. And these are marginally -- bearing essentially all the costs related to these power plants. That means the depreciation, the financing costs, but have not been generating revenue. So this has been, of course, a very significant drag on our performance, which now with obtaining these licenses should go away or is going away. So there's probably another EUR 1.5 million to EUR 2 million that we would expect to generate on top of last year's performance. And as mentioned earlier, the exit from the C&I business in Australia should also avoid a negative contribution of up to EUR 1.5 million that also weighed on our performance last year. So while, of course, this EUR 5 million of EBITDA are very disappointing and below our guidance, we believe that our true earnings power is significantly higher. And we are working very hard for this to become reality this year. In addition, we are also continuing with a very thorough review of our cost base. And that means we're also expecting and working towards a positive contribution to our EBITDA in 2026 through lower operating costs. As you can see -- could see in our report, the headcount in Q4 was already reduced by over 15% compared to previous quarters. Headcount reductions are, of course, a very sensitive topic. But with the reduction of our footprint, for example, exit from the Australian market and of course, also certain overhead capacities can be reduced, this has happened to a certain degree already, and we are obviously rightsizing now our central functions. And we do see still significant potential to reduce costs, but not only HR related, where, of course, we have to make sure that we are able to execute all the businesses that we're involved in and that we want to continue in the markets where we are present. But there are many non-HR costs where we see potential to rationalize and reduce costs. So from an operating point of view, our goal for this year is to significantly improve our financial performance by, first of all, avoiding these one-off items, having a resolution upcoming in relation to our Romanian revenue base and also the exit from Australia will help us in this effort. At this point, we are not in a position to provide a guidance for this year. So this is something we may address in the second quarter once we'll have a high level of confidence how business develops. But of course, we also need to understand what the resolution of the dispute with PSE, if there is a resolution, will bring. So this is currently one of our key areas of focus. One of the key questions is, of course, our bond covenant covering our equity ratio. The covenant is structured in such a way that we are calculating an adjusted equity ratio, which you can find in the prospectus. And we have a so-called regulatory carve-out, which means that if on any of the PV power plants that are in our portfolios, there is an impact from a retroactive change, we can -- our equity is adjusted for the impact. So here, you can see that the cumulative or the values that are the result of these regulatory changes, both in Hungary and Romania. So in Hungary, as we mentioned -- as I mentioned before, it comes in the form of a 5-year freeze of the indexation of the feed-in tariff. And in the case of Romania, it was the change of regulations that led to a loss of revenues. At this point, some of these losses have already incurred -- have been incurred but they also, of course, have an impact on the valuation of our power plants. It means without those retractive changes, those power plants would have a higher carrying value in our accounts. So specifically, the impact and the valuations is smaller in Romania with EUR 167,000. The 5-year freeze of the indexation has a much bigger impact on the Hungarian power plants in the form of -- to the tune of almost EUR 1.9 million, whereas in Romania, it's reversed. We have incurred, as mentioned before, already EUR 2.5 million in lost revenues due to the regulatory changes, whereas the impact in Hungary, as mentioned earlier already, is relatively benign in comparison of EUR 131,000. But the total impact is around EUR 4.6 million. And when we add this adjustment back to our equity, we still have an equity ratio of 25.1%, which means we are above the bond covenant. Very close, of course, but we are above. Here you can see which parts of our equity statement are impacted by these regulatory changes. The piece of news that, of course, is a primary interest is that the escalation of our power dispute with PSE and the risk of not receiving revenues in our capacity market business in Poland for the next couple of months. So an offset of this EUR 3.2 million plus VAT, talking about EUR 3.9 million would represent a complete loss of revenues at least for the first 4 months. Most likely it will still include parts of our remuneration for May, of course, represents a significant strain on this business line, which to date has been actually a good contributor to our consolidated results. And what appears to be the final decision to offset was communicated to us at the end of last week, and it put us into a very tricky situation. Of course, we are currently in a situation where our liquidity is comparatively low to previous times. And in order to preserve our ability to react and absorb the impact of this, what seems to be a final decision of PSE to maintain continuity, we have, of course, operating costs there. We have, in terms of staff, systems and of course also customers with whom we have contracted, we had to make the very hard decision to delay the payout of the coupon on our bond, which we communicated in, of course, at the very last moment, but it was linked to this piece information that we received very shortly prior to the coupon payment date. The situation with PSE is dynamic. I explained before that we are taking all legal steps to avoid the situation, including a request for an injunction. And I would say the next 1 or 2 weeks will show how the situation develops. We had -- so the questions that we have received so far are related to this topic. So we -- just following what I just said, we need -- we will see -- we have to wait for how the situation develops around the Green Bond. We are, of course, working very hard on increasing the liquidity position. We have communicated before that we are focusing very strongly on disposing of our development assets in Romania. We also have discussions around our -- some of our operating power plants that have not been financed on a long-term basis. What I can confirm is that we have interested parties, those discussions are ongoing. And we do expect some results from this effort during the second quarter. So we are working very hard on increasing the liquidity position irrespective of this development in Poland in relation to PSE. But we are today not able to give a specific date. Of course, we understand this is a very unpleasant situation, and we have so far here holded into our covenants and paid coupons in our bond for this to an extraordinary situation. We're working very hard, I would say -- we have to say, day and night to rectify this and pay the coupon, but we cannot give a specific date. So the moment we are in a position to do so, at least give a specific date, we will, of course, inform the market. But more importantly, we'll try to pay the outstanding coupon. I see there are some questions from 2 investors who seem to have received the coupon payment from the custodian bank or their brokers. And this is information that is secondhand. I haven't spoken to any of the brokers, but apparently several brokers have prefunding coupon payments and dividend payments. That means they're not waiting until they get paid by our custodian bank, but they transfer it before receipt. So this is the reason why you may have been credited the coupon. Again, what I've been told by people who understand this process better than me, there may be then a reduction when they say your broker or your custodian does not receive the funds from our custodian bank. So you may have been -- have received this coupon, but maybe in the next couple of days, it may actually be deducted again. But please contact your broker. This is what we've been told, but it needs to be verified, but it may explain why you have received the coupon. In terms of our cash position across the group, we are at the level that is comparable to what we have reported in the -- as of the end of the year. This is the answer to the question what of the cash position is as of today. There is a question about the bond buybacks. So while again, we fully understand how beneficial it will be to buy back the bonds. But of course, at this point in time, our priority is to maintain operations given the circumstances, particularly in Poland, but just as importantly, to pay the outstanding coupon. So buying back bonds and not paying the coupon is something that we definitely will not do. The last question. So is the revaluation models for Hungary, Romania and Slovakia still in progress and will be part of the audited statements? Well, of course, we have updated our valuations as of the end of the fourth quarter. And so they're part of the -- they're reflected in the accounts that we -- and the statements we just published and presented today. The models that we're using and the input factors are coordinated with our auditors. Of course, there will be a final review. But as of today, we don't expect there to be any significant change. Details of the Polish claim. I will try to explain this as best as I can, the background, and we will try in the next couple of days to make available a more detailed description. The Polish capacity market was established by the Polish government, I think, 8 or 9 years ago. This is pretty much a copy of the model from the U.K. And the main purpose is to have a legal title to provide support to the coal-fired generation units in Poland. And so the vast majority of capacity market payments goes to coal-fired generation in Poland. The part that we operate in is demand-side response. And I would dare to say it's a bit of a sick leave so that it doesn't look at it's only for coal-fired generation. And in order to be able to support coal-fired generation, the Polish government managed to get an exemption from EU CO2 emission limits for any generation capacity commissioned before 2018, which covers, of course, all the coal generation units in Poland. Any generation unit used in any of the parts of the capacity market has to -- after that date has to comply with the limits. The remuneration paid through the capacity market mechanism is considered state date, and this is why it has to be approved and any changes have to be approved by the EU Commission. So this, of course, also applies to demand side response. So the way it works is through auctions run every year. We contract a certain volume of capacity. So in the fourth quarter, it was 282 megawatts with the Polish TSO. And the service we provide is if certain stress levels in the Polish grid are reached, the Polish TSO can call the service that we coordinate, which is the reduction -- the coordinated reduction of electricity consumption by our clients. And so what we do is we create so-called capacity market units, which range from 2 to 50 megawatts, where we on the other -- which contract with the PSE. And on the other side, we contract with energy users ranging from SMEs all the way to steel mills. And flexibility from our customers, of course, can have multiple sources. One of them is that they simply switch off equipment that they're using or even the lights in some cases. Going forward, it will be more and more achieved through batteries. But one flexibility element is on-site generation. And this can be -- in some cases, these are just coal generation, but also a lot of customers are adding diesel generators. And either they already had them before we contracted with them or they're adding them later. And diesel generators that were commissioned after 2018 are subject to the CO2 limits. And these CO2 limits can only be achieved if either fully or at least to a very significant degree, these diesel generators are run with biodiesel. And every year, we have to state to PSE that all our customers are adhering to these limits. So on one hand, it has also become obvious over the last 2 to 3 years that it's very hard to police because when a customer decides to add a diesel generator, he has to inform us, which is not always happening automatically. But there's also certain exceptions. And so one of the problematic assets that led to this dispute is actually a customer of ours who added a diesel genset, primarily for heating in the winter. And for this, there is an exemption as long as they are not visibly used in this service that we provide to the TSO. So there are these tricky areas and basically the dispute arises from in total 3 assets or 4 assets that where it is in this technical gray zone and where we have a strong view that we were compliant. The problem is the consequence of noncompliance by even one asset in our capacity market unit is a return of revenues for the entire year. So essentially -- and unfortunately, in this case, a 50-megawatt unit with annual revenues from the TSO to us in 2024 of EUR 3.2 million is, from the point of view of PSE, affected. So obviously, we had assets that were noncompliant. So the view of the TSO is that they were noncompliant and therefore, we need to return the revenues. From a technical point of view, we are of the view that we did not violate the emission rules or our customers did not. And so this is the sort of the dispute. So when the TSO informed us that noncompliant asked us for the return, we appealed the decision with the energy regulator, URE, in Poland, who then on the 3rd of December decided to side with the PSE's argumentation. But the legal process is such that we still have the path to administrative courts. And this is what we did. We filed on the 17th of December. And the expectation was that this case -- well, first of all, we feel quite confident that we have a very strong chance of prevailing in this court procedure. But secondly, we're also expecting that this will take as there are 2 levels. So before a final ruling occurs, we will probably take 3 to 4 years. And of course, in administrative law, the disputed amount only becomes due when there's a final court ruling. And PSE seems to take -- or has taken a different stance and is now basically unilaterally and from our point of view, unlawfully trying to offset this, the disputed amount, which, again, represents approximately 4 months of revenues in 2026. And of course, the impact is extremely significant as we have a very high fixed cost base in this business line. Well, yes, so our expectation is that the court process can take between 3 to 4 years before there is a final ruling. What we have done now is we have sent a request for an injunction to the court to issue against PSE so that they cannot offset the disputed amount with the revenues that there was for the ongoing provision of services. So by law, courts have 7 days in Poland to react to such a request. Reality seems to be different. So it can take longer. But basically, we have to see how this develops. So we will, of course, pursue all our legal options and procedural possibilities as actively as we can. The question before is about the refinancing of our Green Bond. Of course, this situation that has occurred over the last couple of days. Our original plan was to address the refinancing after the publication of our results for 2025. We, of course, understand that now we're in a different situation with developments in Poland with the fact that our coupon is delayed. And all I can say is that with a sense of urgency, we are, first of all, looking at improving our business performance, maybe even somewhat more radically than before. And at the same time, we are reviewing the options that we have. We are, of course, aware. And one of the questions that was sent to us before the call took reference to what is going on in the German bond market. So there are -- at this point in time, not the only renewable energy company that has issued a bond in Germany and is not doing very well. So we are aware that -- I will not name names, but there's 2 or 3 companies that have commenced a discussion with the bondholders. So we're not at this point, but we are aware that this is a possibility. And it is definitely one of the things we will be contemplating. So it is a combination of improving our internal performance, which I think is -- and cash flow generation through a combination of reduction of costs, generating cash to the sale of assets, but we will, of course, also have to look at the funding structure of our group. I think in terms of our restructuring, I have probably said everything that we feel comfortable doing at this point in time. But we understand it is a difficult situation and it requires swift and thorough action. And we will inform the market as soon as there's something reported in this relation. Well, there is a question about what happens if the court denies the motion or whether it has a -- what the impact on the tariff is. So I think if we have a -- if this offset crystallizes and there's no stay on it, we'll definitely have to think very hard what to do with the entity affected. It's one of the key issues. But in any case, we have in the background -- I mean, we have people that work in back offices. We have systems that are used not only for the capacity market, but also for our electricity trading and not only in Poland, but also in Hungary and the Czech Republic. So there are elements of this business -- a new energy that need to keep going. And of course, it means they incur fixed costs. And those we need to -- in essence, they're mission-critical for the other parts of New Energy, and those we have to maintain with a significantly lower revenue base, but also contribution base and what needs to be covered centrally. So this is the main area where it has a drain on central cash flow. So from our end, we are, I think, at the end of our presentation. Are there any more questions that...

The question about audit -- so sorry. The audit is ongoing. And yes, given the current situation, going concern is, of course, a key topic. So question on Australia and the voluntary administration process. Yes, we did describe this impact as minor. And yes, it is correct that the intercompany loans that were provided from the holding or other entities in the group to the companies that are currently in voluntary administration have -- so they're not -- they were written off. But of course, they are eliminated on consolidation, firstly. And secondly, they essentially reflect losses of these Australian entities in the past. So they have been already reflected in our past financial statements. So while we don't expect a complete 0, but whatever the write-off requirement will be will not have an impact on the -- so in our consolidated results, we keep running basically at 0. So any positive result will actually be positive. But we don't -- so we don't -- however, at this point, we don't expect any material, in the context of our balance sheet or equity, a material impact either way neither positive or negative. There's other question about the value of these receivables, which at this point, we cannot report. But I think once the VA process will come to an end, we will be more specific. It is a significant amount, but as it impacts on a consolidated basis, will not be material. Okay. So if there are no more questions, then we would like to thank you for your attendance and your interest. It is a very challenging time. And we are very, very sorry about the delay in the coupon payment. And we are re-working very hard to get to a point where we can not only make the outstanding payment, but of course, our goal is to get back to what we have been able to do for over a decade, which is timely payment of all our coupon payments. So if not for this extraordinary situation, we understand how important it is. And we know that a lot of investors have shown a great level of trust in our business, and this is really something that we don't -- was not part of our plan. So we're addressing it as fast as we can. And as at the moment, we cannot give an exact timeline, we will -- there's a commitment from us. And of course, we will communicate any news that can clarify the situation in terms of timing. So thank you very much for your interest. And we do hope that on our next call, we will have more positive news and not only in terms of numbers, but also circumstances to report. Thank you very much, and have a great day. Thank you. Bye-bye.