Dear participants, welcome to Virši Investor Webinar. We will start with the presentation on Virši business update and continue with a live Q&A session. We are looking forward to receiving your questions. Please submit them in writing through the Q&A window on the bottom of your screen. Questions can be submitted either anonymously or with your name. This session is being recorded and will be available shortly after the call. Let me now introduce you to our hosts. Virši Chairman of the Management Board and the CEO, Jānis Liepa, and Member of the Management Board and CFO, Vita Čirjevska.
Good. Thank you, Ieva. 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 Virši. 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. If we, maybe, firstly look back at development in 2025, we see that actually in that particular year, fuel market was actually quite stable. We had fluctuations in crude oil price between $60 and $80.
The highest level was in January 2025, 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. Of course, tariffs came, also geopolitical tensions, at some point, eased towards end of the year and, then actually this oil price was going down. Probably, if you look at, early March 2026, the 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. Of course, because of issues with logistics in this strait, there are quite a deficit of oil in the market.
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. Of course, also retail prices are following this increase. That's about fuel. About natural gas, the year was also in 25 quite, let's say, stable. Prices were between EUR 30-50 per megawatt hour. We see that the highest price was actually in early 25 because of relatively cold weather, but they went down towards end of the year when LNG supply was accelerating to Europe. 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.
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 2025 for Baltic countries because Baltic countries exited from this Russian energy system. Basically, currently, we are already independent. Of course, that's very good news for for Baltics. Also interesting to see that overall, Nord Pool prices in Latvia were around 15% lower in 2025 versus 2024. Some explanation for this is fact that Estlink 2 cable was restored.
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 2025. At the same time, if we look at January and February 2026, 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. 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.
Overall, I guess interesting also to note that 2025 was a record year in terms of electricity sold in Latvia, which is made from domestic renewable resources. Let's see how it goes. 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. That's the overall picture, the big one on global markets, very quick run. Now let's focus down to our company, to company Virši. As each year we are revisiting our plan for long-term goals. Currently we see that our long-term plan is already based on 2028.
If you look, what are the, let's say, most significant changes versus previous estimates, let me put two things. The first one is that we have actually put more ambition in our number of fuel stations. If initially we planned that the number will exceed 90 stations in 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, a fuel chains in Latvia named Astarte-Nafta. The deal, if it is approved by Competition Council, would increase Virši network by 19 stations in terms of not buying these stations, but in terms of long-term lease.
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 three years, which might seem super aggressive. Again, we already doubled our EBIT in last couple of years. Why we think it, we will manage to double it again in next couple of years is simply because we have invested a lot of CapEx in last couple of years. Heavy CapEx, which should start to generate a good cash flow already from 2026, based on three sources. The first one is the new stations which were opened in last couple of years.
They're 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 EBIT. And also third is our biomethane project, which also should be up and running and generating cash flow already starting from second half of 2026. These are actually the three areas where we see this EBIT will have quite a big boost, if you can say so. That's on our strategic goals. Let's let Vita speak about sustainability, yeah.
Yes. Well, sustainability, I would say in Virši took one way of developing in 2025 and EU level another side. Whilst in the EU we see that in the last quarter of the year, the requirements for reporting have been eased for the companies and also for Virši. We no longer would have to be audited in the future. Before that, there was a plan for the EU sustainability report to be audited. Right now it's our free will basically. In Virši 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, 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. That quite a lot of overlaps with our main goals, with our strategic goals. 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 this in the company. That has led us to the less waste, less expenses in the waste initiatives. We see that there is still potential in the future.
Also, the fuel station network, if we look at Latvia, I would say we are the top one, if we look at the lower emission refueling options in fuel stations. We have 10 CNG stations and already 31 station with EV charging points. And we see the potential for developing these alternatives in the future as well. 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 2025.
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. 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 suggests 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.
Let's continue about our next strategic goal, which is development of station network. I just want to remind that in 2024 we opened nine stations, which was a huge actually number. Mostly all of them were built as a, let's say, greenfield project.
Mm.
In 2025, let's say this ambition was a bit lower. We opened two stations in two beautiful cities, in Salacgrīva and Kuiķuļi, and we are very happy that both of these stations are actually already getting good results starting from day one. We'll bring even more in this year. We are also reviewing constantly profitability level of our network. Just to remind, there was a decision made that in middle of the year we exited two convenience stores which were not providing fuel, but simply store products. We saw that the return on capital on those two were not, let's say, at the level which we would be willing them to be.
The most important point here, I guess, is actually already happening in 2026, early 2026. In February we already sent a notification to Competition Council where we expressed our willingness to acquire long-term lease for 19 Astarte-Nafta brand stations. That would, if approved, give Virši, I would say, big boost in market share. Also a big boost in profitability in especially in 2027, 2028. The plan is that Competition Council probably should make a decision by maximum term, which is June. If so, we could actually start investing in those stations and make them completely similar to the same basically stations as other Virši stations.
By the end of the year, the customers should not actually even see any difference between Astarte-Nafta stations and Virši stations. That's a big, big thing which we are currently working on, and that is probably the most important thing which will happen in company during summer. Next one, employees.
As I stated already before, the employees have been a focus for us through the past years and also this year. 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 new commerce to our team in as well trained and as well developed as we want to have them to provide the service for our clients. Over the past two 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 2024 compared to 2023.
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. We have done a lot. There has been a lot of effort in this process. We are very, very happy and grateful for the recognition. We have been named as the best employer in Latvia for the 2025 in CVMarket.lv ranking last week. We are also looking for CV-Online Top Employers nominations, and we want to see the results there.
We are already very happy about the CV market, and that has been a big, say event for our company and big, thing for us. 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. Number one sustainability project actually for this year has been the office change in Riga. We have changed the address in Riga and let's say maybe for the shareholders meeting, you would be welcome already to see how we live there. Yeah.
Which is a good idea actually.
Yeah.
Okay. Again, next strategic goal is to be number 1 in alternative fuel segment. We are actually already number one, so we just have to keep this level. 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. The good thing is 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. 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, are more expensive.
That's could potentially bring us a good material return. Also therefore, these 10 stations which we currently have with regards to compressed natural gas, they are becoming even more important because 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. Electricity is also doing quite well because we have opened seven new locations with powerful charging, I would say, units in 25. Currently we are already having 31 stations equipped with electricity chargers.
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, of course still continuing to develop. Very importantly is 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 northwestern regions, let's say close to Estonian border, where we are already in the final stage of completing our biomethane plant development. We see that everything is going according to the plan. We think that this will be finalized during first half of 2026.
Starting from second half of 2026, we are already 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 groups, EBITDA in second half 2026. Yeah. Next one is just to remind that we are working constantly to diversify our business model. 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. Once also biomethane comes into the play, this diversification will be even even more. 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. Yep.
Yep. To the EBITDA, that is one of the most attractive units for the shareholders as such. We can happily say that this has been the record year for Virši, and we have reached EBITDA of EUR 15.2 million. There has been an increase compared to 2024 by 10.8%, or EUR 1.5 million. Also we're happy about the result because we see that this result comes from the new fuel station network that is stable in performance. This is still in a run-up phase or warming up in 2025 because the stations were mainly built in 2024 and some of them only in the end of 2024.
they are just warming up and making their performance better from period to period. we see that the fuel sales have increased and also in the gross profits, and also the convenience stores gross profits have grown by 11.7%, reaching already a very stable position as the number one business in our portfolio. worse situation has been with the energy gross profits due to the balancing costs, 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 are mainly related to the employees and to the maintenance of the new fuel station network.
We see that these cost increases are weighted out by the gross profit increase and is stable platform for the next periods. This has been a great year, and also we see that the trend is good for the next periods. This minus in the energy segment is also worked on for the next periods. 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. Yeah. To the net profits. The net profits has grown by almost EUR 1 million or EUR 0.9, 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, in this period, we can already say that these evaluations of the financial instruments, they've 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 decrease in costs and the net effect for the year 2025 have been EUR 151,000. Quite insignificant compared to the other numbers. We see that the greatest increase have been in EBITDA that we already discussed. There's the cost side, the increase were in depreciation.
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. This has been quite strong also in respect to the net profits, and we see the base good for the next periods.
Yes. Let us briefly touch each of those three main segments which we have in business. Let's start with fuel. What is happening in fuel? As you can see, we are growing much faster than the market is. 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. 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. Secondly, because if approved, the deal about 19 new stations, that will obviously will bring a big boost to these market shares as well.
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. This, of course, have reduced, let's say, our ambition to grow in Lithuania, let's say, so aggressively as we thought initially. 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.
The final point is simply just to remind, which is maybe bad news for the fossil fuels, is that cost burden will increase because of excise tax, because of regulations also including ETS2. 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 and to, let's say, capitalize on this opportunity.
Convenience stores or business number one, yeah, 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 to the alcohol. 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 Jānis already mentioned, we had evaluated the last year projects that were shop without fueling in Tērvete Norigo. We made decision to close the shops as that was not performing quite as well as we expected. 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.
We see that all these efficiencies have driven also our turnover to grow by 12%, whilst market with Virši together was still at 3.3%, which is a bit better than I'd say in fuel side, in the market, but still quite low. We see that our direction is right, and that also ends up in our financial figures.
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 one year. Currently, we are already fourth largest player in the market. There is of course quite significant gap between top three and the fourth place, but we will continue to drive this gap down. On B2B segment, I guess it's important to know that we are also having a healthy growth of around 60-16%, which is quite in our mind, let's say careful and healthy, let's say, growth.
Also important to know that in 2025, 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 persons in test, let's say, test, which we are kind of providing this product, but we have not decided to enter the household market as such currently because it makes quite a big investment in our IT systems and also takes quite operational work from employees. Not yet, not yet there to enter this market. 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.
The main problem obviously was this huge, unexpectedly huge balance in costs of electricity. Because we had in 2025, quite a big portfolio of solar parks, then obviously in those summer days, when we're 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. It was quite costly for us to do that. Because of that, we already re-evaluated 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 our producers which we work with simply to improve this profitability in 2026, much, much better than it was in 2025. Yeah, now financials.
Well, basically we already had this drive through to land in these financials for this year. 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 by 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 Naujene as biomethane plant was developed.
We see the potential there also in the next years. Employee base has grown by more than 20%, for from 756 to 919 in the last year. That has drawn our financial ratios also up over the past years. We see that, at this moment, our balance sheet and then the ROA and equity to assets ratios, they are quite stable for our future new development plans announced. We see that, we have a capacity to maintain the development as planned in the strategic goals.
I guess, reaching the final slide, just key, let's say items which we would appreciate if you would remember is simply that 2025 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 history of the company. We managed to do that despite quite challenging conditions on Latvia's economy because GDP growth was very low. We opened two new stations in two beautiful cities.
We also now are awaiting approval from Competition Council on getting this long-term lease on Astarte-Nafta 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 Virši network and should already provide a big boost on our market shares in future. 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. We will not need to use maybe more expensive biofuels from Others, few providers which was the case in last years.
Finally, also important is to note that our biomethane plant is up and running according to the schedule. Starting from second half of 2025, sorry, 2026, this should already provide a good financial impact to our group members. We are, I guess, pretty done with key material, and from my and also Vitas' side, a big thank you also to our employees for a quite exciting year. To even more probably exciting year in 2026. Also thank you for, you know, investors about being with us, being patient and kind of being together with us on this journey. Now I guess it's time for questions, yeah?
Indeed. Let's continue with your questions. I see a couple of them have come in already. A reminder, please submit your questions if you do have any through the Q&A window that you see on the bottom of the screen. We will start with the questions that have been submitted prior to call. After completing gas station expansion targets, what will be the next big thing for Virši 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 these 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 number one in Latvian market. 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 1 project as you know already. Another one we have under development. Probably there could be others. Also energy segment.
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? Mm-hmm.
Well, actually during 2025 has AI has been one of the trainings we have for our employees and in different kind of ways for the fuel stations with their questions also for the administration. Right now each and every team, they find their own ways, own processes, how to use it best, the best in in their teams. We are also investigating the ways to improve also the customer experience with Virši services through AI, but that's still to come. We see that there is a potential, but we also need to think that this that that has not that should not become like a main thing and that should be also used efficiently and wise.
Thank you. When is it expected for the Competition Council to allow the lease from Astarte-Nafta? How many will transform to Virši brand?
We submitted a formal letter to Competition Council on February 19th. Based on local regulations, they have to give answer within period of one month up to four months. If you model, let's say, worst case, then it should be roughly June 19th when they should give final answer. 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 Virši brand, so as we already mentioned, 19 stations, all of them will completely be in terms of Virši quality, Virši brand, Virši assortment, Virši, let's say, everything. Yeah, nobody will even notice a difference between Virši stations, which are, we already have and Astarte-Nafta stations, which we hope we will have after approval.
Mm-hmm. Thank you. Is the growth potential sufficient relative to the risk?
Mm-hmm. That's the thing we evaluate from project to project, and that's why actually we have this mix of new projects and then wind farms like Windland and also with the 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. We see that it's, we are within a good point right now. Yeah.
Mm-hmm. Thank you. 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 talked about in a previous webinar, that we see that all those new stations which we built in 2024, 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. They are delivering simply, I guess that was the main reason why second half was stronger than first half.
Mm-hmm. Operating expenses were broadly flat year-over-year in second half. Given station expansion, where did the savings come from?
I'd say that also quite relates to the previous question. It's about the station network. We were developing station network during 2024. Many of the stations were already there in the first half of 2024 and in the middle of the year. In the second half of the year, if we look at the employees that were onboarded before the station opens and trained. Basically payroll was paid. Also, the supporting functions were there. These costs were there in 2024. The profits came in 2025, and from, as Jānis said, from warming up to the better ratios already in the second half of the year. Yeah.
Mm-hmm. The group has made its initial investment in Lithuania. What are current plans and aims to further expand into the other Baltic countries?
It's a tough question because as I mentioned about excise tax, which is now, for diesel, higher in Lithuania than Latvia. 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. At the same time, it does not mean that we won't stay with this one station. 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.
Mm-hmm. About Astarte-Nafta, if the plan is to fully rebrand to Virši and not keep trading under name Astarte-Nafta, 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 structured 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 in our capacity of our own employees that we will basically switch some of our current projects to Astarte-Nafta project if the approval comes to us, and basically the investments will still be in measurable and then in normal level for us to develop as the previous years 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. That is already negotiated with the financiers and the banks and that will be mainly like IFRS 16 effect on debt to equity ratio. Yeah.
Mm-hmm. Any chance you could share the CapEx numbers per station for Astarte-Nafta 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 the full prospect right now up to the detail. We have from the first sites, as we can see from the client shows, we have the estimates, but they are not public for us to comment. Yeah.
Mm-hmm. Is it realistic for energy segments to break even in 2026?
Answer is definitely yes. Why I'm very sure about that is simply is that already in 2022, 2023, 2024, actually this segment was delivering several EUR million of in total profits. 2025, 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. 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 2026, it should be break even at least, but most likely already profitable.
In EBITDA slides, what is in cost of sales, given gross profit is after direct cost of sales?
Yeah. I noticed this one too. There's a problem with the translation. Basically, these are sales costs, rather than cost of sales. These are sales costs for selling. Basically, that is the fuel station and network infrastructure maintenance and the sales employees that we have in the stations that are the core costs in this block. Yeah.
Mm-hmm. Thank you. What is Circle K or other major players doing to respond to Virši eating into their market share?
Good question. Yes, I can confirm that we are eating their market share, definitely. Probably they are 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 their future strategy looks like. 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. 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 Virši plan to prepare the ESG report in accordance with ESRS for financial year 2026, and is it planned to be audited?
For 2025, we have already published the report. 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, 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. 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, let's say, administrate the report and the additional audits. 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.
Thank you. The given moment, the last question that we have received: What impact do you anticipate from Israel-US-Iran war in first half of 2026?
Super tough question because of course nobody knows what will happen, how long it will happen, and, the, 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. Other, from that, it's difficult to, yeah, 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 Virši specifically. We are super confident that that will not be a problem.
Thank you. 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.