Individual Half-Year Report of Board of Directors for the 1St Half of 2021

ROMPETROL RAFINARE S.A. INDIVIDUAL HALF-YEAR REPORT OF BOARD OF DIRECTORS FOR THE 1ST HALF OF 2021

INDIVIDUAL HALF-YEAR REPORT

OF THE BOARD OF DIRECTORS

ROMPETROL RAFINARE S.A.

(“RRC”)

FIRST SEMESTER OF 2021 (H1 2021)

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ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 207 | email: [email protected] www.rompetrol.com ROMPETROL RAFINARE S.A. INDIVIDUAL HALF-YEAR REPORT OF BOARD OF DIRECTORS FOR THE 1ST HALF OF 2021

HALF-YEAR REPORT ROMPETROL RAFINARE S.A.

on the individual financial statements of the Company drafted according to the Order no. 2844/2016 of the Ministry of Public Finance as subsequently amended and supplemented, and according to Law no. 24/2017 on the issuers of finance instruments and market operations and to Annex 14 of Regulation 5/2018 issued by Financial Services Authority (FSA),

for the period January 1st – June 30th, 2021

Half-year report according to: Art. 65 of Law no. 24/2017 on issuers of financial instruments and market operations and Annex no. 14 to ASF Regulation no. 5/2018 for the 6-month period that ended on June 30, 2021 (First half - year of financial year 2021)

Name of the trade company: ROMPETROL RAFINARE S.A. Registered office: 215 Năvodari Blvd., Pavilion Administrativ, NĂVODARI, Constanţa County Telephone number: 0241/50 61 50 Facsimile number: 0241/50 69 30 Sole registration code with the Trade Register Office: RO1860712 Trade Register number: J13/534/05.02.1991 Subscribed and paid share capital: LEI 4,410,920,572.6 Regulated market on which the securities are traded: Bucharest Stock Exchange Shares market symbol: RRC

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C O N T E N T S

1. GENERAL DESCRIPTION AND OBJECTIVES ...... 5

1.1. Key events during January – June 2021 (S1 2021) ...... 6 1.2. The objectives of Rompetrol Rafinare investment program for the first half of 2021: . 12 1.3. The objectives of Rompetrol Rafinare regarding quality, health, labour security and environment (QHSE), set for 2021 are the following: ...... 14

2. FINANCIAL STATEMENT ANALYSIS ...... 16

2.1. Financial position statement as of June 30, 2021 ...... 17 2.3. Statement of cash flows for the period of 6 months ended June 30, 2021 ...... 19

3. ECONOMIC ENVIRONMENT, OPERATIONAL ACTIVITIES AND ANALYSIS OF THE COMPANY’S ACTIVITY ...... 22

3.2.1. PRODUCTION ACTIVITY of Rompetrol Rafinare – Năvodari Work Point (Petromidia Refinery) – in the 1st Half of 2021 ...... 25 3.2.2. PRODUCTION ACTIVITY of Rompetrol Rafinare – Vega Refinery Work Point (located in Ploieşti) – in the 1st Half of 2021 ...... 26 3.2.3. PRODUCTION ACTIVITY of Rompetrol Rafinare – Petrochemicals area - in the 1st Half of 2021 ...... 27 3.3. COMMERCIAL ACTIVITY ...... 28 3.3.1. COMMERCIAL ACTIVITY carried out at Năvodari Work Point (Petromidia Refinery) in the 1st Half of 2021 ...... 28 3.3.2. COMMERCIAL ACTIVITY carried out at Vega Refinery (in Ploieşti) in the 1st Half of 2021 ...... 31 3.3.3. COMMERCIAL ACTIVITY carried out in Petrochemicals Area in the 1st Half of 2021 33 3.5. Capital expenditures, current - first semester 2021 ...... 36

4. CHANGES AFFECTING THE SHARE CAPITAL AND THE COMPANY MANAGEMENT ...... 39

 Committees set up at the level of the Board of Directors ...... 42 Page 3 of 60

5.IMPORTANT EVENTS – FIRST SEMESTER 2021 45

5.1. RELATED PARTIES ...... 45 5.2. LEGAL ASPECTS ...... 49 5.3. Other significant transactions ...... 54 5.5. Amendment of the Articles of Association of the Company ...... 55

6. MAIN FINANCIAL INDICATORS AS OF 30.06.2021 ...... 56

7. ANEXE ...... 57

ANNEX 1 – STATEMENT OF FINANCIAL POSITION AS OF 30 JUNE 2021 ...... 57

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1. GENERAL DESCRIPTION AND OBJECTIVES

Rompetrol Rafinare S.A. (hereinafter referred to as „RRC” or the „Company”), a company member of KMG International Group, is a joint stock company, managed in a one-tier management system, with registered office in Năvodari, bulevardul Năvodari, nr. 215, Pavilion Administrativ, judeţul Constanţa operating Petromidia refineries, situated in Năvodari, Constanţa county, and Vega in Ploieşti, Prahova county. The company is registered with the Trade Registry under the number J13/534/1991 and Tax Identification Number 1860712.

Starting with 01.01.2014, Rompetrol Rafinare S.A. took over the operational plants (polymer and utilities production) of Rompetrol Petrochemicals S.R.L.

In accordance with the provisions of the Articles of Incorporation of the Company Rompetrol Rafinare S.A. the main field of activity is „ manufacturing of the products obtained from the processing of crude oil” (NACE code 192), and the main object of activity is represented by the “manufacturing of the products obtained from the processing of crude oil" (NACE code 1920). Other secondary objects of activity are detailed in the Articles of Incorporation of the Company. The company develops its activity either directly or by means of related entities of Romania, Switzerland, Netherlands, Bulgaria, Serbia, Republic of Moldova, Turkey, etc.

Rompetrol Rafinare holds the quality as authorized warehouse keeper, in accordance with the applicable tax legislation. Petromidia and Vega Refineries are authorized as production tax warehouses, being manufacturers of energetic products, according to the tax rules governing the production of energetic products.

Rompetrol Rafinare also holds Integrated Environmental Permits, issued by the competent environmental authorities in accordance with the environmental legislation, for the 2 operated refineries: Petromidia and Vega.

The shares of Rompetrol Rafinare are traded freely within the Standard category of the Bucharest Stock Exchange, under market symbol RRC.

Rompetrol Rafinare is the parent company for the branch offices Rompetrol Quality Control S.R.L., Rom Oil S.A., Rompetrol Downstream S.R.L., Rompetrol Logistics S.R.L., Rompetrol Gas S.R.L and Rompetrol Petrochemicals S.R.L. within KMG International Group.

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During the first semester of year 2021, the activity of Rompetrol Rafinare, company of KMG International Group, developed under the main budget premises.

The quantity of raw materials processed during the first half of year 2021 by Rompetrol Rafinare (Petromidia and Vega Refineries as well as the Petrochemical Plant) amounted to approximately 2.720 million tons, out of which approximately 2.378 million tons of crude oil, compared to a total level of approximately 2.126 million tons, out of which approximately 1.647 million tons of crude oil, corresponding to the first semester of year 2020.

For the entire year 2021, Petromidia Refinery proposed to process a quantity of raw materials of approximately 6.001 million tons, out of which 5.255 million tons of crude oil, Vega Refinery approximately 0.4 million tons and the Petrochemical Plant proposed to process a quantity of polymers of approximately 0.187 million tons.

1.1. Key events during January – June 2021 (S1 2021)

Events that took place during January – June 2021

On 28 April 2021, the Ordinary General Meeting of Shareholders (OGMS) took place at the office of RRC, during which, the shareholders approved mainly as follows:

 The audited annual financial statements for year 2020 both at standalone level and at consolidated level and the income and expenses budget for year 2021 of RRC;  The discharge from management of the members of the Board of Directors of RRC for the financial year 2020;  The Remuneration Policy of the Company’s management structure, issued according to the provisions of art. 921 of Law no. 24/2017 on the issuers of financial instruments and market operations;  The re-appointment of Ernst & Young Assurance Services SRL, as financial auditor of Rompetrol Rafinare S.A., for a 1(one)-year term, that is to audit the financial statements of the Company for the financial year 2021, the term of the audit services agreement being of one year.

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On the same date, 28 April 2021, the Extraordinary General Meeting of Shareholders (EGMS) of the Company was held, within which the shareholders approved, mainly, the following:

 to amend and to update the Articles of Incorporation of Rompetrol Rafinare S.A., according to the Note submitted to the shareholders for this point of the agenda (paragraph 1 of the agenda of the EGMS dated 28 April 2021). The amendment aims: the transfer made by the Central Depository of Bucharest of the shares held by the Romanian State issued by Rompetrol Rafinare, from the account of the Romanian State by the Ministry of Economy, Energy and Business Environment to the account of the Romanian State by the Ministry of Energy following the putting into application of the provisions of art. 12, par. (2) of the Government Decision 316/2021 on the organization and functioning of the Ministry of Energy;  the celebration of some documents having significant patrimony content namely: (i) framework acquisition agreement for raw materials – crude oil, for the period 1 January 2021 – 31 December 2025 concluded between Rompetrol Rafinare S.A. (as beneficiary) and KazMunayGas Trading A.G. (as supplier), and (ii) Addendum no. 2 to the long-term Loan Agreement concluded on 2 May 2012 between Rompetrol Rafinare S.A. (as borrower) and KMG International N.V. (as lender).

Main decisions of the Board of Directors (BoD) RRC:

During the first semester of year 2021, the Board of Directors gathered within 8 meetings. The agenda of the meetings of the Board of Directors included matters that regarded the current activity developed by the Company, for example: in order to approve the Annual Report (standalone and consolidated) and to organize the annual ordinary general meeting for approving the annual financial results, including the information documents and materials to be referred to the approval of the GMS; in order to approve the information documents and materials to be referred to the approval of the Extraordinary GMS dated 28 April 2021 regarding the proposal to update the Articles of Incorporation of the Company and the proposals related to the celebration /ratification of some legal documents having significant patrimony content; in order to supplement the agenda of the Ordinary General Meeting of Shareholders dated 28 April 2021 including in the agenda the item regarding the selection of the Company’s financial Auditor to audit the annual financial statements corresponding to year 2021; in order to approve the reports and the materials corresponding to the financial results for first quarter 2021; to approve the celebration of some

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significant legal documents for the supply with raw materials, electricity, thermal energy, natural gas, acquisition of maintenance services for year 2021, etc and the sale of oil products;

The agenda of the meetings of the Board of Directors also included other approvals for the development under good conditions both of the Company’s activity and information by the Executive Management related to the statement of the Net Assets registered by Rompetrol Rafinare as at 31 December 2020 and of the main recovery options.

At the same time, during the meeting dated 30 June 2021, the BoD of RRC adopted Decisions regarding: (i) to approve the Report on the patrimony standing of Rompetrol Rafinare S.A., issued by the Company’s Board of Directors as at 31 December 2020, that will be submitted to the Extraordinary General Meeting of Shareholders of Rompetrol Rafinare S.A. dated 6/9 August 2021, (ii) to approve the proposals of the Executive Management related to the net asset recovery measures according to the provisions of art. 15324 of the Company Law no. 31/1990 (option 1 – option 6), (iii) to summon the EGMS on 6 August 2021 – first summoning and 9 August (second summoning), and (iv) to approve the re-evaluation with the reference date being the last day of the month after the expiration of the two-month term as when the Resolution of the EGMS was published in the Official Gazette of Romania, Part IV, according to art. 208 (1) of Law no. 31/1990 on companies, having as object the tangible assets at their fair value and, as the case may be, the financial investments at their fair value, if the EGMS dated 6 August 2021 (9 August 2021 – second summoning) approves any of the options at point 4 of the agenda of the Extraordinary General Meeting of Shareholders.

Policies – corporate governance

On 29 April 2021, following the approval by the OGMS dated 28 April 2021, the Remuneration Policy of the company was published on the website regarding the management structure of the Company, issued according to the provisions of art. 921 of Law no. 24/2017 on the issuers of financial instruments and market operations. This way, by the current Report no. 2493/29 April 2021, Rompetrol Rafinare S.A. announced the modification, starting with 28 April 2021, of the compliance status with the provision C.1 of the Corporate Governance Code of the Bucharest Stock Exchange, namely to pass from “non-conform” to „conform”.

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The relevant provision C.1 is the following: „The Company must publish on its webpage the remuneration policy and must include in the annual report a statement regarding the implementation of the remuneration policy during the annual period that makes the object of the analysis. Any essential change occurred in the remuneration policy must be published in due time on the Company’s webpage.”

The following significant events took place after the end of the first semester of year 2021:

Decisions of the Board of Directors of RRC:

- 16 July 2021

Whereas the summoning of the Extraordinary General Meeting of Shareholders ("EGMS"), dated 6/9 August 2021, Whereas, at point 4 of the agenda of the EGMS the approval by the shareholders of RRC is proposed to reduce the share capital of the Company, within the context of the approved items, approved by Decision no. 2 of the Company’s Board of Directors dated 30 June 2021 and, conditioned upon the approval by the EGMS of points 1 and 2 of the agenda of the latter one, in one of the proposed variants: option 1 – option 6,

Whereas, according to Decision no. 2 of the Board of Directors of Rompetrol Rafinare S.A. adopted following the analysis of the recovery measures of the net assets of the company, measures that were supported, on the one hand, by the preliminary results of the re-evaluation of the company assets, as at 31 December 2020, and, on the other hand, the estimated results as regards the financial standing of the Company as at 31 December 2021 (related to the next 2 scenarios: (i) Company budget and (ii) pessimistic scenario with the financial result for year 2021 at the level of year 2020),

The Board of Directors recommended to the Company shareholders to adopt option 4 as it is customized on the agenda of the EGMS as being the most feasible and convenient for the Company so that the measure should offer a prudent approach from the perspective of the financial stability at the end of year 2021 corroborated with the re-evaluation measure of the Company assets, adopted by the Board of Directors according to Decision no. 3 dated 30 June 2021.

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The recommendation of option 4 by the Board of Directors was adopted considering that it was supported by the preliminary results that may suffer future adjustments following the influence of more factors that may have impact on the results when the decision is implemented as well as when the financial statements for year 2021 are closed, so that the ratio between the net assets of the Company and the estimated share capital of the Company as at 31 December 2021 could have deviations compared to the options presented within the Decision of the BoD no. 2 dated 30 June 2021, these ones being issued based on forecasts.

Considering the technical incident that took place within Petromidia Refinery dated 2 July 2021, consisting in an explosion followed by fire at the Petroleum / Diesel Catalytic Hydrofining Plant (HPM Plant) situated on the layout of the fiscal warehouse held by the Company in Navodari,

Whereas as of the occurrence of the event, the HPM Equipment was stopped and the decision was made to stop under a controlled manner all installations within the refinery Plant, situation de facto that is maintained at this moment as well,

Whereas one of the direct consequences of the incident dated 2 July 2021 is represented by the fact that the net assets of the Company will suffer a deterioration higher than that one estimated before the occurrence of the technical incident dated 2 July 2021,

Whereas the need to review the recovery options of the net assets following the new situation de facto determined by the incident,

The Board of Directors, in its meeting dated 16 July 2021 recommended to the Company’s shareholders to adopt option 2 from point 4 of the agenda of the EGMS dated 6/9 August 2021, as representing the feasible and convenient option for the Company considering the implications resulted from the occurrence of the incident that took place on 2 July 2021, so that this measure should offer a prudent approach from the perspective of the financial stability at the end of year 2021 being corroborated with the re-evaluation measure of all the Company assets, measure adopted by the Board of Directors according to Decision no. 3 dated 30 June 2021.

According to point 4 of the agenda of the EGMS dated 6/9 August 2021, option 2 represents:

„Option 2: To approve the decrease of the share capital of the Company with the amount RON 1,755,000,000 so that as at 31 December 2020 the accounting value of the shares of Rompetrol Rafinare should be equal to their face value”.

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- 6 August 2021

Extraordinary General Meeting of Shareholders of RRC dated 6 August 2021:

By the date of this Report, the shareholders of Rompetrol Rafinare S.A. gathered in the meeting dated 6 August 2021 during which they approved mainly the following: - To confirm the continuation of the Company activity, according to the provisions of art. 15324 of the Law; - The date 31.12.2021 being the date until when the Company adopts all legal measures to remedy the net assets compared to the value of the share capital of the Company. - Decrease of the share capital of the Company according to Option 2 submitted by the Company Management, namely: to decrease the share capital of the Company with the amount of RON 1,755,000,000 so that as at 31 December 2020 the accounting value of the shares of Rompetrol Rafinare should be equal to their face value.

This way, the share capital of the Company will be reduced with the amount of RON 1,755,000,000, from RON 4,410,920,572.60 to RON 2,655,920,572.60, decreasing the number of shares with 17,550,000,000 shares, namely from 44,109,205,726 shares to 26,559,205,726 shares, according to art. 207 (1) (a) of the Companies Law no. 31/1990. The procedure used to decrease the share capital is the following:  the existent share capital amounting to RON 4,410,920,572.60 lei is reduced with the amount of RON 1,755,000,000, resulting a new value of the share capital of RON 2,655,920,572.60;  the number of shares that makes the object of the decrease is calculated proportional to the participation quota of each shareholder in the share capital on the registration date;  if the application of proportional reduction results in fractions of shares, the rounding of the number of shares remaining the account of shareholders will take place at the lower integer. A price of RON 0.1 / share is established to compensate the fractions of shares resulted following the application of the algorithm and rounding of results;  the reduction rate of the share capital will be established according to the following formula: number of shares with which the share capital is reduced: number of shares issued by the company on the registration date – 17,550,000,000: 44,109,205,726 = 0.397876128375969;  the number of shares to be cancelled following the decrease of the share capital is calculated as follows: the number of shares held by a shareholder on the registration date multiplied with the decrease rate of the share capital.

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1.2. The objectives of Rompetrol Rafinare investment program for the first half of 2021:

The investment program of Rompetrol Refinery accomplished in the first semester of 2021 was in the amount of USD 6.12 million, as follows:

I) From the category of compulsory investments required by environmental and safety regulations, in the first semester of 2021:

o The project “Expire authorization ISCIR (State Inspection for Control of Boilers, Pressure Vessels and Lifting Installations) for static equipment Refinery Platform (ISCIR PEM 2021-2022)” started, a project that consists in the reauthorization of pipes and technological units equipment, according to the ISCIR requirements in force; in addition will carry out VTP (Technical Periodic Verification) activities and elaborate technical documentation for the extension of ISCIR due date to equipment due in 2021 and 2022. The project will be finalized in December 2022.

o In the frame of the Master Plan for the rehabilitation of the entire infrastructure of the water supply network for the Petromidia refinery it was started the project “Fire- fighting Water Main Replacement Package 2021 sections T031, T054, T056, T059”. The project scope is to perform replacement and rehabilitation of the firefighting civil and mechanical infrastructure, according to the established priorities for 2021, for section sections T031, T054, T056, T059, based on the project design. The project will be finished in June 2022.

II) In the Capital Maintenance category, a important place is “2022 Refinery Planned Shutdown (SD)” project, technological shut down for equipment’s periodic inspections, catalysts replacement, maintenance, etc.

To attain, maintain and improve Refinery Objectives, it is imperative and mandatory (compulsory) to enforce control over our refinery Maintenance Plan execution, to improve their technical availability indicator. A special attention should be paid to energy efficiency and technological losses indicators, as well as to continue the activity of increasing the performance efficiency of some units.

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RRC Board of Directors adopted in May 15, 2018 a new strategy for planning the General Turnarounds and Shutdowns between 2018-2026 by reducing the actual cicle of 5 years to 4 years for General Turnaround, respectively to establish a Shutdown between 2 General Turnarounds, every 2 years.

The Refinery Planned Shutdown scheduled for 2022 has taken into consideration a series of cyclical activities:

Works and activities as follows: o Catalysts replacement/regeneration - All the works related to replacement of catalyst with new one or regenerated for the one who are at the end of lifetime - in order to keep higher diesel/gasoline of yield production, and to obtain more valuable products o Operational works – Other activities, not related to maintenance repairs or revamp, but are required in order to achieve a good efficiency for Refinery, mandatory activities in order to prevent any damage or failure of equipment due to corrosion, erosion, deposits from technological process. o Maintenance – Usual repairs and inspection necessary for equipment static/dynamics and pipes that cannot be performed during units operation o Capital Maintenance – equipment's that will be replaced only in shutdown period. o Capex or Improvement project – implementation of CAPEX projects that can be done only with plants shutdown

Additional and unexpected/found works – which will appear after we will opening the equipments and/ or will be identified by the inspections programs performed until the date of start for the effective Shut Down 2022.

Project start-up – from commercial point-of-view, project start-up should be aligned with Trading to minimize effect on sales. Project timeline - due to very high volume of work according to the preliminary Shutdown schedule are necessary 20 days for mechanical works.

Within this project, the benefits are as follows: o Refinery operation at nameplate capacity, 5 mil t/year and according to the group bussines strategy until next planned shutdown and future objectives in terms of increased processing capacities (in 2020 – 5,600,000 t/year feedstock processed) with improved mechanical availability. o Maintain Refinery at its nominal monthly capacity. o Reduce routine maintenance costs. o Maintain units safe and normal operating conditions until next planned shutdown. o Improve efficiency of plant within high mechanical availability. o Increase reliability / availability of equipment during operation. Page 13 of 60

o Safety–zero incidents (human accidents or damage to equipment) o It was started the program „Refinery static equipment rehabilitation”. The main activity of the program is the execution and replacement of the prioritary static equipment for a proper functioning of the refinery units. This project aims increasing the mechanical availability of the refinery, in order to have a high level of equipment functioning in safety conditons and to maintain the refinery operating capacity at its nominal level. The estimated finish date is 2022.

1.3. The objectives of Rompetrol Rafinare regarding quality, health, labour security and environment (QHSE), set for 2021 are the following:

 Certification / maintenance of certifications: o Quality-Environment-Occupational Health and Safety Management System (QHSE) according to ISO 9001, 14001 & ISO 45001 o Energy Management System in accordance with ISO 50001 o International Sustainability & Carbon Certification (ISCC) Management System, in terms of the sustainability requirements of the 2009/28 / EC (RED) o For motor fuels and bitumens, according to legal and regulatory requirements

 Increase profitability: o Petromidia refinery by processing 6 million tons of raw materials per year and achieving a white product yield of 86.51% o Vega refinery by processing 408,000 tons of raw materials o Petrochemistry by obtaining minimum 92,500 tons of polypropylene

 Decreasing the number of customers complaints by 10% compared to 2020

 Solution in proportion of min. 85% of the findings resulting from QHSE internal audits and inspections

 Maintaining / obtaining environmental protection regulatory acts

 Maintaining / updating REACH registration dossiers of chemical substances and disseminating information provided by CONCAWE in line with ECHA requirements

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 Improvement of waste management in order to streamline turnaround activities

 Implementation of own techniques for identifying fugitive emission sources and loss reduction (LDAR)

 Improving the process of managing the risks associated with petroleum products

 "Zero" fatal accidents and "Zero" professional diseases on Petromidia and Vega Platforms

 Minimizing the SARS-COV2 pandemic risk on personnel and operational activities, by implementing and maintaining the identified measures and observing the rules established at the organizational level

 Maintain the effectiveness of the "1.LIFE" safety project by: o performing at least 2000 safety audits o organizing at least 4 safety workshops / meetings and 2 personal motivation and awareness actions

 Achieving an energy consumption for BU Refining at the planned level of 3.39 GJ / t throughput

 Increase in energy efficiency by obtaining a 93.82 % energy intensity indicator for the Petromidia Refinery and an energy index of 2.58 GJ / t for Vega refinery and 17.88 GJ/t for Petrochemicals

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2. FINANCIAL STATEMENT ANALYSIS

The information and the Individual Interim Financial Statements on the date and for the period of 6 months that ended on June 30, 2021 presented in this report are not revised by the financial auditor of Rompetrol Rafinare S.A. and were drafted according to the Order of the Ministry of Public Finance no. 2844/2016 for approving the Accounting Regulations according to the International Financial Reporting Standards („IFRS”), based on the International Accounting Standard 34 – „Interim financial reporting” passed by the European Union.

The submitted indicators are in Lei (RON) unless otherwise stated.

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2.1. Financial position statement as of June 30, 2021

The financial position on June 30, 2021 is presented in Annex 1

Indicator December 31, 2020 June 30, 2021 Variation (RON) (audited) Non-current assets 5,168,043,823 5,337,995,718 96.82% Current assets 2,654,677,647 2,060,059,433 128.86% Total assets 7,822,721,470 7,398,055,151 105.74%

Non-current liabilities 959,585,928 934,193,583 102.72% Current liabilities 5,789,878,726 5,128,254,423 112.90% Total liabilities 6,749,464,654 6,062,448,007 111.33%

Equity 1,073,256,816 1,335,607,145 80.36% Total liabilities and equity 7,822,721,470 7,398,055,151 105.74%

At the end of the first semester of 2021, the Company’s non-current assets amount to RON 5,168,043,823, slightly decrease as compared to December 31, 2020.

As of June 30th, 2021, current assets are in amount of RON 2,654,677,647, registering an increase of approximately 29% more than the level at the end of 2020. This is mainly due to the increase in value of the receivables (from RON 1,167,390,890 on 31.12.2020, to RON 1,514,916,548 at June 30, 2021) and the increase in stocks (from RON 527,073,050 on 31.12.2020, to RON 981,264,823 at June 30, 2021).

The liabilities payable in a period of 1 year increased from a value of RON 5,128,254,423 at 31.12.2020 to RON 5,789,878,726 on June 30, 2021 (by approximately 13%). This increase is mainly due to the value increase of commercial debts and other debts (from RON 4,774,877,899 at 31.12.2020 to the value of RON 5,389,018,774 at June 30, 2021).

Long-term debts recorder a slightly increase of about 3% at 30.06.2021 (RON 959,585,928) compared to 31.12.2020 (RON 934,193,583).

As regards provisions, they shall record at 30.06.2021 the same value as the 31.12.2020. Page 17 of 60

2.2. Profit and loss account for the 6-month period that ended on June 30, 2021

In the first semester of 2021 the Company recorded a net loss of 256,401,130 lei, compared to a net loss of 592,114,118 lei recorded by Rompetrol Rafinare S.A. in the first semester of 2020. The significant reduction in net loss in the first semester of 2021 compared to that recorded in the first semester of 2020 was due to production and sales volumes in the refining segment in the first semester of 2021 significantly increased, with the Company recording higher refining margins compared to those of the first semester of 2020 (affected by the planned general turnaround and the pandemic context of Covid-19) , the operating loss in the refining segment being 124.2 mil. RON in the first semester of 2021 (semester I 2020: 362.6 mil. RON). The petrochemical segment recorded notable positive operational results in the first semester of 2021 worth 89.1 million RON compared to an operating loss of 74.4 mil. RON in the first semester of 2020 on the background of the sharply increased quotations of petrochemical products, despite the two-and-a-half month shutdown of the LDPE plant. The negative net result in the first semester of 2021 was strongly influenced by the loss from exchange rate differences of 149.8 mil. RON recorded as a result of the depreciation of the national currency against the US dollar (USD) during this period. Turnover recorded in the first half of 2021 was 6,016,523,533 lei compared to 3,882,494,802 lei reached in the first half of 2020, increased by 55%, mainly due to production volumes and sales in the refining segment in the first half of 2021 significantly increased compared to those of the first half of 2020 (affected by the planned general turnaround and the pandemic context Covid-19), on the background of a significant increase in the prices of petroleum products on the international market. The petrochemicals segment also recorded a notable turnover increased in the first half of 2021 compared to the first half of 2020 on the background of the sharply increased quotations of petrochemical products, despite the two-and-a-half month shutdown of the LDPE plant.

In the first half of 2021 the Company recorded an operating loss of 35.102.235 lei, compared to the first half of 2020 when there was a loss of 437,029,040 lei.

During the first semester of 2021 the financial expenses exceeded the financial income, finally recording a loss of financial activity in the amount of RON 221,298,895 (Semester I 2020: RON 155,085,078). The financial indicators recorded on 30.06.2021 include the results of the activity of the Refinery and Petrochemistry Plants on the Năvodari platform, as well as the Vega Ploiesti refinery.

The profit and loss account for the six-month period ending June 30, 2021 is set out in Annex 2.

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2.3. Statement of cash flows for the period of 6 months ended June 30, 2021

Cash flows from operating activity in the first half of 2021 were significantly influenced by increased production and sales activities together with higher refining margins recorded in the first half of 2021 compared to the first half of 2020, as well as the increase in commercial debts and the value of stocks compared to the same period of the last year. At the end of the first half of 2021, The Dated Brent crude oil average quotation in the semester I 2021 was $65 per barrel compared to the average quotation in semester I 2020, when it stood at $40.1 per barrel.

In the first half of 2021 Rompetrol Rafinare S.A. continued the implementation of new technologies, allowing the processing of various types of crude oil and obtaining products to the quality required by European standards, as well as increasing the yield in white products. A continuing concern has been to align with the requirements of the European Union and to comply with the requirements of the Directives on the promotion and use of biofuels and the environmental rules in force, in particular

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with a view to reducing emissions of oxides of nitrogen, sulphur, volatile organic compounds and carbon dioxide and the storage of hazardous waste.

Major investment projects in the first semester of 2021 concerned works related to the authorization/reauthorization of equipment from the point of view of ISCIR, the replacement of some fire water pipes and the replacement of the heater in VD unit, Vega Platform.

Cash flow from financing activities in the first half of 2021 was influenced by the fact that the Company benefited from a Cash pooling contract – a system for optimising cash balances, in order to support both the needs generated by the investment activity and the development of the operational activity of the refinery, as well as a long-term facility – syndicated.

Other factors that influenced cash in the financing activity also were increased use of short-term loans contracted from banks and reducing the Company's exposure to short-term loans contracted from affiliated companies. In February 2021 the Company fully repaid the short-term loan received from the affiliated company KMG International N.V.

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3. ECONOMIC ENVIRONMENT, OPERATIONAL ACTIVITIES AND ANALYSIS OF THE COMPANY’S ACTIVITY

3.1. GLOBAL ECONOMIC ENVIRONMENT

H1 H1 % 2021 2020

Brent Dated USD/bbl 65.0 40.1 62% Ural Med USD/bbl 63.6 39.2 62% Brent-Ural Differential USD/bbl 1.4 0.9 59%

Premium Unleaded 10 ppm FOB Med USD/tonne 604 367 65% Diesel ULSD 10 ppm FOB Med USD/tonne 519 365 42%

RON/USD Average exchange rate 4.07 4.37 -7% RON/USD Closing exchange rate 4.14 4.32 -4%

RON/EURO Average exchange rate 4.90 4.82 2% RON/EURO Closing exchange rate 4.93 4.84 2%

USD/EURO Closing rate 1.19 1.12 6%

Inflation in Romania* 3.42% 1.55% 121% Source: Platts, * INSSE (Inflation in Romania is calculated based on CPI - i.e. Consumer Price Index)

Dated Brent increased by +39.4$/bbl. (+133%) in Q2 2021 as against Q2 2020 and settled to an average of 69$/bbl and increased by +24.9$/bbl. (+62%) in H1 2021 as against H1 2020 and settled to an average of 65$/bbl.

In Q1, the crude prices reached their highest level in 13 months on the back of raising fears of fresh Middle East tensions and after U.S. government data showed a drop of 1.1 mil barrels per day in crude output after a deep freeze disrupted production by mid of February.

At the beginning of March, OPEC+ agreed not to increase supply in April as they await a more solid recovery in demand, even if the start of the COVID vaccination program bolstered the economic outlook.

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Dated Brent reached 76.44$/bbl. at the end of Q2, the highest level since October 2018, on the back of falling US crude oil stocks, simultaneous with expectations that demand growth will outstrip supply and that OPEC+ will be cautious in returning more crude to the market from August.

According to International Energy Agency (IEA) the supply glut created by the global pandemic has cleared, even as demand suffers a blow from a resurgence of the virus in India.

OPEC+ compliance with oil production cuts in April reached 113%. At its June 1 meeting the OPEC+ decided to proceed with existing plans to raise official July quotas by 440,000 b/d over June. Saudi Arabia will also bring back the remaining 400,000 b/d of its extra, unilateral 1 million b/d cut.

Since the beginning of the year the Urals-Dated Brent differential had a decreasing trend, from 0$/bbl. to -1.5$/bbl., as Iranian heavy crude oil exports remained at elevated levels compared to last year. Also, Urals oil exports from Russia increased during this period, keeping pressure on the differential.

European margins decreased by -1.8$/MT (-11%) in Q2 2021 as against Q2 2020 and settled to an average level of 14.5$/MT and also decreased by -18$/MT (-59%) in H1 2021 as against H1 2020 and settled to an average level of 12.4$/MT.

Even if the margins were lower as against H1 2020, they had an increasing trend during H1 2021, with major positive impact coming from gasoline cracks and low Urals-Dated Brent differential.

European gasoline cracks increased, supported by growing mobility in Europe and by numerous bookings especially from US, which was hit by very cold temperatures in February, disrupting production. Gasoline cracks increased to levels last seen in October 2019. While healthy demand represents one piece of the puzzle, some higher bookings for European gasoline from abroad are probably the main reason for the current upside in cracks.

Diesel cracks experienced moderate gains during Q1, supported by an increasing export to the US. Positive developments on the demand side were almost offset by increasing supply due to switching jet yields into diesel pool. But diesel cracks strengthened during Q2, supported by rapid demand recovery across the continent. Strengthening industrial performance and easing mobility restrictions have stimulated both road freight demand and private consumption. The Mediterranean diesel market is likely to strengthen not only because of higher demand but largely because refiners will at some point stop putting jet fuel into the diesel pool.

jet cracks to recover during Q2. Currently, jet yields are in recovery mode and the supply pressure to the diesel pool is easing.

In terms of exchange rates, internally, the RON/EUR exchange rate continued its upward movement, averaging in Q1 2021 at 4.8787 and continuing to increase in the second quarter of 2021 to the average level of 4.9234 (highest average level in the last 5 years).

The RON/USD exchange rate also continued its upward movement, averaging in Q1 2021 at 4.0489 and continuing to increase in the second quarter of 2021 to the average level of 4.0865, but still below as against the average levels for the same periods last year.

*The information is based on analysis provided by JBC Energy GmbH, OPEC and National Bank of Romania

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3.2. PRODUCTION ACTIVITY

3.2.1. PRODUCTION ACTIVITY of Rompetrol Rafinare – Năvodari Work Point (Petromidia Refinery) – in the 1st Half of 2021

Raw material processed, tons

3.000.000

The quantity of raw

2.500.000 347.924 materials processed in Petromidia Refinery in 2.000.000 the 1st semester of 2021 469.159 was higher by 28.86%, 1.500.000 as compared to the 2.378.457 similar period of 2020. 1.000.000 1.646.679

500.000

Other raw materials - Crude oil First half 2020 [tons] First half 2021 [tons]

End products, tons 3.000.000 2.639.314 The quantity of end 2.500.000 products obtained in 2.078.650 Petromidia Refinery 2.000.000 in the 1st semester of 2021 was higher 1.500.000 by 26.97% as 1.000.000 compared to the similar period of 500.000

0 END PRODUCTS H1_2020 H1_2021

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3.2.2. PRODUCTION ACTIVITY of Rompetrol Rafinare – Vega Refinery Work Point (located in Ploieşti) – in the 1st Half of 2021

Submitted raw materials, tons 200.000 The quantity of raw 150.000 materials processed in Vega Refinery in the 1st half of 2021 100.000 188.187 was higher by 154.122 22.10% compared to the similar period of 50.000 2020

- First half 2020 [tons] First half 2021 [tons] Other raw materials

Finite products, tons 200.000 180.000 160.000 The quantity of finite 140.000 products obtained in 120.000 Vega Refinery in the 1st half of 2021 was 100.000 185.786 higher by 22% 80.000 152.299 compared to the 60.000 similar period of 40.000 20.000 FINITE 0 PRODUCTS H1_ 2020 H1_ 2021

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3.2.3. PRODUCTION ACTIVITY of Rompetrol Rafinare – Petrochemicals area - in the 1st Half of 2021

Processed raw materials,tons

100.000 The quantity of raw materials 80.000 processed in Petrochemicals in the 1st semester of 2021 60.000 was higher by 26.6 % 96.298 compared to the similar period 40.000 76.087 of 2020 (due to the turnaround activities, planned for 55 days 20.000 starting March 15th 2020)

- Total raw materials First half 2020 [tons] First half 2021 [tons]

End products, tons 100.000 The quantity of end 80.000 products obtained in Petrochemicals in the 1st 60.000 semester of 2021 was 94.153 higher by 26.7 % 40.000 74.294 compared to the similar 20.000 period of 2020 (due to the turnaround activities, 0 First half 2020 [tons] First half 2021 [tons] Total Products

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3.3. COMMERCIAL ACTIVITY

3.3.1. COMMERCIAL ACTIVITY carried out at Năvodari Work Point (Petromidia Refinery) in the 1st Half of 2021

A. Feedstock supply

In the first half of 2021, Rompetrol Rafinare S.A. – Petromidia Refinery purchased crude oil and other feedstock from external and domestic sources, as indicated in the table below:

Feed stock purchases Quantity (tons)

1.Crude oil 2,400,148 2.Other feedstock 299,587 3.Total external purchases (1+2) 2,699,735

4.Total internal purchases 37,467

Crude oil purchased first half of 2021 vs first half of 2020 3.000.000 2.400.148 2.500.000 2.000.000 1.556.041 1.500.000 1.000.000 500.000 0 tons Sem I 2020 Sem I 2021

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In the first half of 2021, crude oil purchases were higher than the same period of last year due to planned turnaround performed in march-april 2020.

The supplier of imported feedstock (crude) was KazMunayGas Trading AG. The main internal suppliers of feedstock were:

 Prio Biocombustibil  Expur SA.  Socar Petroleum

B. Sales

The sales in the first half of 2021 amounted to a total of 2,298,487 tons as compared to 1,847,580 tons in the same period in 2020. The net value of end product sales was 1,246,378,308 USD as compared to 773,284,952 USD in the first half of 2020, respectively 5,075,694,146 RON as compared to 3,360,299,878 RON in the first half of 2020. Volumes of sales in 2021 were hiwer due to planned turnaround performed in march-april 2020 and also due to new coronavirus epidemiological crisis which affected the market and industry overall in 2020

In terms of sales markets, the share of domestic sales was higher (65%) than external market. On the external markets, sales amounted to a total 794,387 tons and a net value of 426,600,279 USD. Structure of end products sales by distribution channels 2.500.000

2.000.000 External market (35 %)

1.500.000

1.000.000 Domestic market (65 %)

500.000

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Approximately 82% of the total quantity of end products sold was represented by gasoline and diesel sales (1,891,716 tons). Regarding the distribution channels, the share of domestic market was higher (62%) compared to the external market. On the external market, 724,220 tons of motor fuels (gasoline and diesel) were sold.

Structure of motor fuels sales by distribution channels 2.000.000 1.800.000 1.600.000 1.400.000 External market (38 %) 1.200.000 1.000.000 800.000 600.000 Domestic market (62 %) 400.000 200.000 0

As concerns the distribution channels, the highest volume of gasoline/diesel was sold to Rompetrol Downstream (52%).

2.000.000 1.800.000 Other customers (16%) 1.600.000 KazMunayGas near abroad (12%) 1.400.000 KazMunayGas other 1.200.000 customers (18%) 1.000.000 800.000 600.000 Rompetrol 400.000 Downstream (54%) 200.000 0

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Gasoline

Of the total quantity of 582,890 tons of gasoline sold, approx. 71% was sold on the external market, whereas the remaining percentage was sold on the domestic market. Approx. 92% of the total quantity of gasoline was unleaded Europlus gasoline 10 ppm sulphur

Diesel

Between January and June 2021, were sold 1,308,826 tons of motor diesel, the percentage of domestic sales (76%) exceeding that of external sales.

LPG

A total of 136,889 tons of liquefied petroleum gases was sold to Rompetrol Gas S.R.L.

As concerns the other groups of products, the domestic sales were higher than the external ones (jet, petcoke) and lower than the external ones (sulphur).

3.3.2. COMMERCIAL ACTIVITY carried out at Vega Refinery (in Ploieşti) in the 1st Half of 2021

The sales of Vega Refinery in Ploieşti in the first half of 2021 amounted to a total of 179,087 tons compared to 157,220 tons sold in the same period of the year 2020. By sales market, the external sales were higher (62%) than the domestic sales (38%). 110,371 tons were sold on the external market compared to 87,056 tons sold in first part of 2020.

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Sales on distribution markets [%]

38%

export

62% domestic

White product sales (gasoline naphtha, ecologic solvents, n-hexane, white spirit) represented about 71% of the total sales in first half of 2021.

Sales on products [%]

2% 2% Other gasolines 1% 11% 31% Bituum

Heavy Oil 26% Hexane

24% Solvents

The main external sales markets were: India, Hungary, Germany, Turkey, Bulgaria.

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3.3.3. COMMERCIAL ACTIVITY carried out in Petrochemicals Area in the 1st Half of 2021

Rompetrol Rafinare – Petrochimicals Area is the single producer of polypropylene (PP) and polyethylene (LDPE) in Romania.

Besides its own products, the Company is now actively selling a wide range of petrochemical products which are not currently produced by the Rompetrol Rafinare – the Petrochemical Plant, but which are in demand on the Romanian market, namely: High density polyethylene variants (HDPE pipe variants), linear low density polyethylene (LLDPE), PVC, PET and PP.

The sales of the Petrochemicals Area in the first half of 2021 amounted to a total quantity of 70,613 tons.

In the first half of 2021, 61% of the total sales were represented by polypropylene (PP), 25% by polyethylene (PE: LDPE and HDPE) and the remaining 14% represents the sales of propylene and trading activity.

1% 13% PP 25% PE 61% PROPYLENE TRADING

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TONS Sales 2021 sem I vs. 2020 sem I (tons)

Out of total sales, 56% is the domestic market and the rest of 44% represents exports.

Sales structure on sales markets

59% 56% 60% 41% 44%

10% 2020 sem I 2021 sem I

DOMESTIC MARKET EXPORT

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The most important distribution channels for polymers (PP, LDPE, HDPE, PET and PVC) are Romania-50%, Bulgaria-17%, Turkey-15% and Italy-3%.

The external sales of polymers were targeted to both the European Union and third countries. The intra-communitarian deliveries represented approx. 63% of the total export sales of finished goods, the difference representing the export sales on the non-EU markets.

The distribution of petrochemical products sold by Rompetrol Rafinare SA was done by means of auto and railway in the case of sales on the domestic market and, in the case of sales on the foreign market, the distribution of these products was made both by means of automotive and maritime transport through the ports of Agigea and Constanta.

Polymer Sales by Destination 2021 sem I

AT Others HU SK 1% 4% LT 2% 1% CZ 2% RS 2% IT 3% 3%

RO 50% TR 15%

BG 17%

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3.4. Elements, events or factors of uncertainty that affect or could affect the Company's liquidity

From a liquidity point of view, the company made efforts to maintain the capacity to cover current liabilities from current assets, with the current liquidity indicator increasing compared to the same period last year, 0.46 in the first semester of 2021 versus 0.38 in the first semester of 2020.

Impact factors on the liquidity of the company relate to current assets and liabilities that are directly influenced by the specific activity and fluctuation of crude oil purchase prices and oil products sales prices.

On July 2, 2021 there was an explosion followed by a fire at Petromidia refinery, Diesel Hydrotreatment Unit (in Romanian “instalatia Hidrofinare Petrol Motorina” hereinafter HPM plant). As a consequence of this event, starting with July 02, 2021 the entire Petromidia Refinery production has been temporarily stopped, until the facilities damaged by this incident will be in function again. The company is currently making its own assessments in order to estimate the level of the caused damages by the accident, depending on which it will be estimated the period necessary to carry out the necessary repairs and verifications in order to put the refinery’s units back into operation safely. The company analyzes the potential impact of the incident in the company's liquidity and takes the necessary steps to ensure an adequate degree of liquidity that allows the fulfilment of current obligations.

3.5. Capital expenditures, current - first semester 2021

Between January and June 2021, the company has made investments in a total amount of approx. USD 6.12 million.

A comparative analysis of the investments in the first half of 2020 vs. the first half of 2021 for both the Petromidia and VEGA refineries is shown in the diagrams below:

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Rompetrol Refinery Investments, Petromidia work

100 point first semester 2021 vs. first semester 2020 91,15 mil. USD 90

70 2020 60 50 2021

20 10 2,7 0

Rompetrol Refinery Investments, VEGA work point first

5 semester 2021 vs. first semester 2020, mil. USD 4,39 4,5 4 3,42 3,5 2020 3 2,5 2021 2 1,5 1 0,5 0

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3.6. Events, transactions, which affected the income from the core activity

In the first semester of 2021 net turnover increased by 55% compared to the same period last year, the increase being mainly due to production volumes and sales in the refining segment in the first semester of 2021 significantly increased compared to those of the first semester of 2020 (affected by the planned general turnaround and the pandemic context of Covid-19), on the background of a significant increase in the prices of petroleum products on the international market. The petrochemicals segment also recorded a notable turnover increased in the first half of 2021 compared to the first half of 2020 on the background of the sharply increased quotations of petrochemical products, despite the two-and-a-half month shutdown of the LDPE plant.

The amount of crude oil processed in the first half of 2021 was 732,000 tonnes higher than in the first half of 2020, with an increase of almost 44%.

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4. CHANGES AFFECTING THE SHARE CAPITAL AND THE COMPANY MANAGEMENT

During the period under review, there were no cases where the company was unable to comply with its.

Changes meant to influence the value of the share capital of the Company did not interfere during the period analysed.

As at 30.06.2021, the share capital of the Company registered with the Depozitarul Central S.A. was represented by 44,109,205,726 shares, with a face value of RON 0.10 /share, amounting to RON 4,410,920,572.60.

The consolidated synthetic structure of the shareholders of ROMPETROL RAFINARE S.A., according to the consolidated Shareholders Register as at 31.06.2021 issued by Depozitarul Central S.A. is the following:

PARTICIPATION PERCENTAGE IN SHAREHOLDER NUMBER OF SHARES THE SHARE (As at 30.06.2021) (as at 30.06.2021) CAPITAL (As at 30.06.2021) KMG INTERNATIONAL N.V. 21,222,506,422 48.1136% ROMANIAN STATE represented by the Ministry 19,715,009,053 44.6959% of Energy Shareholders – Legal entities – holding each one less than 10% of the share capital, holding 2,929,902,475 6.6424% together: Shareholders – Natural entities – holding each one less than 10% of the share capital, holding 241,787,776 0.5481% together:

TOTAL 44,109,205,726 100%

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The structure consolidated by Depozitarul Central S.A. as at 30.06.2021

6,6424% 0,54816% Romanian State represented by Ministry of Energy

KMG INTERNATIONAL N.V. 44,6959%

48,1136% Legal persons each holding less than 10% of the share capital

Natural persons each holding less than 10% of the share capital

Note: As at 30.06.2021, the shareholders belonging to the KMG International Group hold 24.098.569.799 shares, representing 54.6339% of shares capital of Rompetrol Rafinare S.A.

We mention that Rompetrol Rafinare S.A. (part of KMG International Group) operates Petromidia and Vega Refineries and holds the control position in the following companies: directly:  Rompetrol Downstream S.R.L. (holding of 99.994688898%)  ROM OIL S.A. (holding of 99.9998508%);  Rompetrol Quality Control S.R.L (70,91%)  Rompetrol Logistics S.R.L (holding of 66,1911%)  Rompetrol Petrochemicals S.R.L. (holding of 100%)

indirectly:  Global Security Sistem S.A. (by Rompetrol Logistics S.R.L.);  Rompetrol Gas S.R.L. (by Rompetrol Logistics S.R.L.).

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Therefore, the holdings of the shareholders of Rompetrol Rafinare S.A. reflect automatically on the companies in which Rompetrol Rafinare holds the control position directly and indirectly. Rompetrol Rafinare operates Petromidia Refinery and Vega Refinery, Rompetrol Downstream operates the Rompetrol filling stations network, and Rom Oil, the warehouse network of the company.

At the end of semester, I 2021, the Company holds two points of work, namely: i) Work point situated in Năvodari, Bulevardul Năvodari, nr. 1 - 283, judeţul Constanţa, named “Rompetrol Rafinare – Work point Petromidia Refinery; Work point situated in Ploieşti, str. Văleni nr. 146, judeţul Prahova, developing its activity in the premises under the property of the Company, named “Rompetrol Rafinare – Work point Vega Refinery”.

4.1. Changes in the administration of the Company:

 Changes in the composition of the Board of Directors

During the first semester of 2021, changes did not take place at the level of the Board of Directors:

The Directors of the Company in office on 30 June 2021 are:  Yedil Utekov, Kazakh citizen, Chairman of the Board of Directors 1 - Non-Executive Director;  Alexey Golovin, Kazakh citizen, Member of the Board of Directors - Non-Executive Director;  Felix Crudu-Tesloveanu2, Romanian citizen, Member of the Board of Directors – Executive Director;

1 Elected as Chairman of the Board of Directors of RRC, following the waiver of the mandate by the non-independent director Mr. Saduokhas Meraliyev starting with 1 October 2020. The duration of the mandate is equal to the period remaining until the expiration of the mandate corresponding to the vacancy, namely until 30 April 2022. 2 Elected as non-independent executive member of the Board of Directors of RRC starting with 1 October 2020 to occupy the vacancy, following the waiver of the non-independent director, Mr Saduokhas Meraliyev, of the mandate. The duration of the mandate is equal to the period remaining until the expiration of the mandate corresponding to the vacancy, namely until 30 April 2022 Page 41 of 60

 Nicolae Bogdan Codruţ Stănescu3, Romanian citizen, Member of the Board of Directors, appointed by the Ministry of Energy – independent Non-Executive Director.  Bogdan-Cătălin Steriopol4, Romanian citizen, Member of the Board of Directors, appointed by the Ministry of Energy – independent Non-Executive Director.

 Committees set up at the level of the Board of Directors

As at 30 June 2021, the Advisory Committees set up at the level of the Board of Directors are the following:

 The Audit Committee having the following structure:

- Dan Alexandru Iancu, financial auditor registered with the Romanian Chamber of Financial Auditors, independent member of the Audit Committee, elected based on OGMS Decision No. 5 of April 27, 2018 for a term equal to that of the Board of Directors, respectively from May 1, 2018 until April 30, 2022 - Chairman; - Alexey Golovin, non-executive director, re-elected by Decision no. 3 adopted by the Board of Directors on May 3, 2018, for a term of 4 years, starting with May 1, 2018 and until April 30, 2022 - Member; - Nicolae Bogdan Codruţ Stănescu, independent non-executive administrator, appointed by Decision no. 3 adopted by the Board of Directors on May 3, 2018, for a term equal to that of the Board of Directors, respectively from May 1, 2018 until April 30, 2022 - Member.

3 Proposed in the Board of Directors of the Company by address no. 101409 / 12.04.2018 (registered with the Company under no. 3346 / 12.04.2018) formulated by the significant shareholder of the Romanian State through the Minister of Energy - Cabinet Minister; 4 Proposed in the Board of Directors of the Company by the significant shareholder Romanian State through the Minister of Economy, Energy and Business Environment (actual name Ministry of Energy). Mr. Bogdan Cătălin Steriopol was the interim director of the Board of Directors during 4 June 2020 – 18 September 2020, then elected permanent direct according to the Resolution no. 6/2020 of the Ordinary General Meeting of Shareholders dated 18 September 2020, for a mandate to expire on 30 April 2022, date when the mandate of directors in office expire.

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 The Strategy Committee having the following structure:

- Yedil Utekov, non-executive director, elected by Decision no. 2 adopted by the Board of Directors on 1 October 2020, for a term starting with 1 October 2020 until 30 April 2022- Chairman; - Alexey Golovin, non-executive director, elected by Decision no. 4 adopted by the Board of Directors on March 20, 2019, for a term starting with April 1, 2019 and until April 30, 2022- Member; - Nicolae Bogdan Codruţ Stănescu, independent non-executive director, elected by Decision no. 4 adopted by the Board of Directors on March 20, 2019, for a term starting with April 1, 2019 and until April 30, 2022 - Member.

 Changes regarding the Executive Management

In accordance with the provisions of the Articles of Association of the Company, the only functions to which the management of the company is delegated pursuant to the provisions of art. 143 of Law 31/1991 on companies are those of General Director and Financial Director. Any other position of Director within the company (Human Resources Director, Commercial Director, Administrative Director, IT Director, etc.), regardless of its name, does not involve the management of the company.

During the period under review, there was a single change in the executive management structure of the Company, namely:

 1 January 2021: pursuant to Decision no. 1 adopted by the Board of Directors on 16 December 2020, the appointment of Mrs. Ramona-Georgiana Gălăţeanu, was approved as Finance Manager of the Company, starting with 1 January 2021, following the request of Mr. Mircea Ştefan Stănescu to resign from the mandate and capacity of Finance Manager. The term of the mandate of the Finance Manager appointed is equal to the period remaining until the expiration of the mandate corresponding to the vacancy, namely until 30 April 2022.

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As at 30 June 2021, the two directors to whom the management was delegated in the sense mentioned above, were: Name and surname Function Felix Crudu-Tesloveanu General Manager Ramona-Georgiana Gălăţeanu Financial Manager

Both members of the executive management exercise the positions held for a term that will expire on April 30, 2022 (together with the directors who appointed them).

 Changes regarding the Financial Auditor of the Company

During the analysed period, the Ordinary General Meeting of Shareholders of 28 April 2021 took place, which, by Resolution no. 3/2020 approved the appointment of ERNST & YOUNG ASSURANCE SERVICES S.R.L. (Romanian legal entity, headquartered in Mun. Bucureşti, Bvd. Ion Mihalache, nr 15-17, Cladirea Bucharest Tower Center, etaj 21, Sector 1, registered at the Trade Register Office attached to the Bucharest Court of law under no. J40/5964/1999, having TIN 11909783, having the authorization No. 77 dated 15.08.2001, issued by the Chamber of Financial Auditors of Romania), having a permanent representative Mr. SABRAN NICOLAS MARIE MICHEL, French citizen, resident in Bucharest, as financial auditor of the Company, for the financial year 2021, the duration of the audit contract being one year.

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5. IMPORTANT EVENTS – FIRST SEMESTER 2021

5.1. RELATED PARTIES

Sales and purchases to and from related parties are part of the current business and are made on a basis that considers that the market terms and conditions are applicable to the nature of the goods and services supplied or received.

A. At 30 June 2021 and 31 December 2020, Rompetrol Rafinare SA had the following balances with the related parties:

Receivables and other assets June 30, 2021 December 31, 2020 KazMunayGas Trading AG 202,231,144 123,320,649 Rompetrol Downstream S.R.L 740,272,737 509,401,057 Rompetrol Petrochemicals S.R.L. 481 481 KMG International N.V. 4,892,900 10,150,180 Rompetrol Moldova ICS 277,489 - Rompetrol Bulgaria JSC 3,427,917 2,110,141 Rominserv S.R.L. 2,295,478 9,474,667 Rompetrol Quality Control S.R.L. 133,611 145,177 Rompetrol Logistics S.R.L 2,417 3,015 Midia Marine Terminal S.R.L. 774,731 899,856 Uzina Termoelectrica Midia S.A. 5,811,136 8,964,455 KMG Rompetrol SRL 22,345,243 78,840,453 Global Security Systems S.A. 607,092 606,223 Kazmunaygas – Engineering LLP (former Rominserv Kazakhstan(RKZ)) 696,632 666,950 Palplast S.A. 2,800,002 2,800,002 Byron Shipping Ltd. 1,812 2,802 Rompetrol Ukraina 15,686 15,018 Oilfield Exploration Business Solutions S.A. 3,023,997 3,026,298 Rompetrol Financial Group SRL 10,945 10,760 KMG Rompetrol Services Center SRL 52,587 50,933 KMG ROMPETROL DEVELOPMENT (RDV) 691,278 - Total 990,365,317 750,489,117

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Payables, loans and other liabilities June 30, 2021 December 31, 2020 KazMunayGas Trading AG 2,620,857,367 1,979,547,932 Rompetrol Downstream S.R.L 31,110,390 66,410,166 Rompetrol Petrochemicals S.R.L. 8,315,590 1,334,066 KMG International N.V.- loans(note14) - 42,260,547 KMG International N.V.-interest - - 6,688,483 KMG International N.V.-trade debts 13,265,119 20,814,163 Rompetrol Gas SRL 14,995,223 19,021,537 Rompetrol Moldova ICS 27,147,071 13,299,899 Rominserv S.R.L. 37,051,176 80,239,429 Rompetrol Quality Control S.R.L. 14,620,887 15,608,669 Rompetrol Logistics S.R.L - 859,818 Midia Marine Terminal S.R.L.-trade debts 35,673,361 33,332,021 Uzina Termoelectrica Midia S.A. 17,104,013 22,657,670 KMG Rompetrol SRL- debt cash pooling 1,976,233,541 1,507,235,473 KMG Rompetrol SRL-interest cash pooling 4,819,860 3,911,685 KMG Rompetrol SRL-trade debts 341,940 11,172,810 Global Security Systems S.A. 614,628 614,628 Global Security Systems Fire Services S.R.L. 1,196,842 856,705 KMG Rompetrol Development 2,501,690 371,820 Rompetrol Exploration & Production S.R.L. 66 66 Palplast S.A. 3,304 - Rompetrol Energy S.A. 198,896 - KMG Rompetrol Services Center SRL 1,851,384 2,471,892 TRG Petrol Ticaret Anonim Sirketi 10,346 10,346 Total 4,807,912,695 3,828,719,827

The company concluded a Cash Pooling agreement for implementing a cash balance optimization system, in which KMG Rompetrol SRL is the “Coordinating company” and Rompetrol Rafinare SA is a participating company; maturity on 4 August 2022.

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B. In the first semester of 2021, respectively in the first semester of 2020, Rompetrol Rafinare had the following transactions with the related parties. 0 0 Sales Purchases Nature of transaction, sales / Name of related party S1 2021 S1 2020 S1 2021 S1 2020 purchases

KazMunayGas Trading AG Raw materials / Petroleum products 1,315,018,430 761,173,525 5,530,818,228 3,095,371,620 Petroleum products, rent, utilities Rompetrol Downstream S.R.L and other 2,671,364,168 1,637,698,567 1,086,903 1,068,032

KMG International N.V. Loan interest, management services - - 4,700,840 6,200,554

Platform operation, propane / Rompetrol Gas SRL Petroleum products, rent, other 204,524,029 126,098,446 267,630 1,918,008

Rompetrol Moldova ICS Sales intermediary services 303,764,139 216,032,508 - -

Rompetrol Bulgaria JSC Sales intermediary services 47,728,596 36,597,103 - -

Acquisition and maintenance of fixed Rominserv S.R.L. assets 1,319,464 1,432,080 76,420,936 389,973,523

Laboratory analysis/Rent, utilities, Rompetrol Quality Control S.R.L. other services, dividends 700,737 743,497 15,045,082 15,308,611

Rompetrol Logistics S.R.L Transport, rent/Rent, utilities 7,528 5,972 82,162 82,162

Handling services/ Rent,utilities, Midia Marine Terminal S.R.L. reinvoicing, loan interest ,others 733,522 516,871 28,201,284 32,703,635

Rompetrol Well Services S.A. Loan interest - - 77 232

Uzina Termoelectrica Midia S.A. Acquistion of utilities 34,275,167 37,313,149 61,029,652 61,279,830

KMG Rompetrol S.R.L. Loan interest, management services 2,881,714 2,363,044 47,412,301 49,596,928

Global Security Systems S.A. Security and protection services 730 921 4,106,648 4,064,614 Global Security Systems Fire Security and protection services Services S.R.L. - - 3,829,721 - Demurrage /Rent, reinvoices of Byron Shipping S.R.L. other services 11,609 12,134 - 76,401 Rompetrol Financial Group SRL Loan interest - - - 63,517

Romoil S.A. Reinvoicing bank loan fees - - 3,304 - KMG Rompetrol Services Center Shared services SRL 261,329 284,027 8,507,405 8,678,913 TRG Petrol Ticaret Anonim Sirketi Petroleum products - - - - 4,582,591,163 2,820,271,844 5,781,512,173 3,666,386,581

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The Ministry of Public Finance of Romania (“MFPR”) held 44.6959% of the share in Rompetrol Rafinare SA from September 2010 until July 2012. Starting July 2012, based on a Government Ordinance, the Ministry of Economy Trade and Business Environment (“MECMA”) became shareholder until May 2013 when, following the reorganization of MECMA, the Ministry of Economy (“ME”) became the new shareholder. The ministry was later renamed as Ministry of Energy, Small- and Medium-sized Enterprises and Business Environment (“MEIMMMA“) and later on renamed as Ministry of Energy (“ME”). According to OUG 68/06.11.2019 it has been renamed to the Ministry, Energy and Business Environment ("MEEMA") and is currently called the Ministry of Energy ("ME").

As a result, MFPR, MECMA, ME, MEIMMMA, MEEMA and Other Authorities are considered to be a related party of the The Group. There are no transactions, balance sheets at the year-end in relation with MFPR, MECMA, ME, MEIMMMA, MEEMA and other Romanian authorities during the time of their affiliation, other than those arising from Romanian fiscal and legislation requirements.

With regard to purchases in relation to related parties amounting to 5,781,512,173 lei registered in the first semester of 2021 compared to 3,666,386,581 lei in the first semester of 2020, recorded an increase of 58% mainly due to transactions with KazMunayGas Trading AG, the main supplier of crude oil and other raw materials for Rompetrol Rafinare S.A. In the context of the increased quantity of crude oil purchased and processed by the Company in the first semester of 2021 compared to the same period in 2020, the value of transactions with KazMunayGas Trading AG increased by almost 79% in the first 6 months of 2021 compared to the value recorded in the same period in 2020.

With regard to sales in relation to related parties of 4,582,591,163 lei recorded in the first semester of 2021 compared to 2,820,271,844 lei in the first semester of 2020, characterized by an increase of 62%, these are mainly due to transactions in the sale of petroleum products. The main clients of Rompetrol Rafinare S.A. are represented by the parties KazMunayGas Trading AG, Rompetrol Downstream S.R.L, Rompetrol Gas SRL, Rompetrol Bulgaria and Rompetrol Moldova ICS. The increase in transactions in relation to related parties in the first 6 months of 2021 compared to the same period of 2020 was determined by production and sales volumes significantly increased in the refining segment from the semester I 2021.

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5.2. LEGAL ASPECTS

Litigation with the State involving criminal charges

Starting with March 22, 2005, a number of criminal investigations have been initiated against certain former shareholders directors, managers and external censors of Rompetrol Rafinare S.A. and other individuals; these investigations were carried out at a formal level and materialized into different criminal proceeding activities (including specialized judicial expertise), currently undergoing the criminal prosecution phase. At the present date, only one of the directors of the Company who is involved in the investigation, still works for KMG International Group.

The charges brought against the defendants upon the initiation of the criminal investigations were:

a) failure to fulfill the investment commitments undertaken under the privatization contract concerning the Company; b) unlawful statement of excises and other debts to the state budget; c) incorrect keeping of accounting registries regarding the technological products operations undertaken at the oil terminal owned by Oil Terminal, charges which concern events that took place during April 2001 – October 2002; d) adoption of GEO no. 118/2003.

Considering the above-mentioned charges, a freezing order were issued by DIICOT and received on 9- 10 May 2016 (the “Orders”), whereby it was decided to impose a distraint (freezing of the assets) on the movable and immovable assets of KMG International N.V., Rompetrol Rafinare SA and Oilfield Exploration Business Solutions SA (former Rompetrol SA) as well as over the shares these companies held in their Romanian subsidiaries.

The freezing of the assets does not impact the inventories, receivables and the bank account of Rompetrol Rafinare and this allows to the company to continue normally the day by day operations.

Rompetrol Rafinare challenged the asset freeze in Court. After two hearings in front of the Constanta Court, the case was assigned to be settled by the High Court of Justice and Cassation, who rejected in full the challenging submitted by Group’s subsidiaries on 17 June 2016.

Meanwhile, the companies also challenged on 30 May 2016 the Orders to the superior prosecutor. The submission was rejected in December 2016.

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Considering the nature of the allegations submitted by DIICOT, the KMGI companies applied for a motion of disjoining (cerere de disjungere in Romanian) in order to have two different cases which shall settle the allegations for RRC’ privatization and post-privatization period – one file and a second one for the allegations related to the issuance of the bonds by RRC (OUG 118/2003). No reply received yet from DIICOT on this topic.

Since the KMGI companies had no capacity in the file till 2016 and it seems the entire process (with minor exceptions) of gathering the evidences by DIICOT have been performed before May 2016, the Companies submitted on April 7, 2017 their own application for, on the one hand, evidences to be attached to the file in order to defend and on the other hand to be redone some evidences (such as expertise report) performed before 2016. No reply received yet from DIICOT on this topic.

On April 12, 2017, the companies submitted also their application by which they asked the dismissals of the allegations regarding the OUG 248/200 (regarding the privatization of RRC) and OUG 118/2003 (the issuance of bonds) taking into consideration the recent Constitutional Court decision no. 68/2017 by which the Court settled that the legislative process, as well as the aspects regarding the opportunity and/or lawfulness of a deed issued either by the Parliament and Government cannot be subject of a criminal inquiry and the Constitution provides other leverages assigned to other public authorities to control such kind of things. No reply received yet from DIICOT on this topic.

On May 10 and June 28, 2017, the Companies submitted their Statement of claims against the DIICOT allegations for the following topics: Libya receivables, RRC privatization and post- privatization period, privatization of Vega refinery and the issuance of bonds (OUG 118/2003), intra-companies transactions and budgetary taxes and duties.

On July 17, 2017 DIICOT issued an Ordinance which generally keeps the approach of the Orders issued in 2016 but let the civil parties namely, Ministry of Energy and Ministry of Finance, to provide the figures for the alleged damage they incurred as well as the evidences for supporting any alleged damage. The only alleged damage party which requested the alleged damage is Faber Invest & Trade, by its legal representative, for an amount of USD 96.6 million.

A statement of defense against the July 2017 Ordinance has been submitted on December 22, 2017 as well a challenge against it submitted in front of the higher prosecutor on September 29, 2017.

On April 12, 2018 DIICOT issued an Ordinance which cancelled the previous Ordinances dated July 17, 2017, September 18, 2017 and December 6, 2017 issued by the in-charge prosecutor of Page 50 of 60

the file by which it was an extension of the inquiry to various individuals and/or some of the criminal offences have been approached in a worse manner for some of the defendants.

Considering that those 3 ordinances cancelled have as background the April 2016 Ordinance issued by in-charge prosecutor by which the freezing orders were imposed over the assets of KMGI, the Group companies KMG International N.V., RRC, OEBS have submitted on April 20, 2018 a new challenge in front of the High Court of Cassation and Justice for lifting the asset freeze. On May 22, 2018 the Court rejected again the challenges submitted by the Group. An appeal against this court resolution was submitted to assess from constitutional point of view if a legal provision based on which the challenges were rejected match with the Constitution principles. The first hearing of the appeal was scheduled for October 8, 2018. The court postponed the issuance of a resolution for October 22, 2018 when the Court rejected the forwarding of the case to the Constitutional Court as well.

A similar challenge was submitted on November 23, 2018. On December 4, 2018 the prosecutor agreed in principle with a partial release of the seizure provided that an expertise will be performed, and the final report will show that the value of the assets frozen exceed the alleged claims. The report was submitted to DIICOT on March 15, 2019. A new request for partial release of seizure was filled in on April 8, 2019.

A new ordinance was issued by DIICOT on November 9, 2018 which changes the legal framework for all deeds investigated in the case.

On July 22, 2016 NC KMG and KMGI submitted to the Romanian authorities the Notice of Investment Dispute based on the Agreement between the Government of Romania and the Government of the Republic of Kazakhstan, the Agreement between the Government of the Kingdom of the Netherlands and the Government of Romania and the Energy Charter Treaty.

The submission of the aforementioned Notice represents the first procedural step that might give rise to an arbitration dispute between an investor and the country where the investment was made. Should a settlement between KMGI and Romania fail to be reached, the case will be referred to and settled by the International Centre for Settlement of Investment Disputes under World Bank, headquartered in Washington, D.C or to the Arbitration Institute of the Stockholm Chamber of Commerce, in line with the provisions of the treaties and with KMG companies’ envisaged reliefs and measures to be obtained.

As 23/10/2019, all the shares seized back in May 2016 as well as the KMGI assets, and assets of Refinery located on the Vega, Ploiesti Platform and OEBS assets were released from seizure (on April 22, 2019). Therefore, the only assets still remaining under freezing orders are the ones of RRC located in Navodari on the Petromidia refinery Platform. On June 12 and July 29, 2019, the

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Group submitted another statement of defence by challenging the allegations mentioned within the case.

On December 5, 2019 DIICOT issued another Ordinance by which all criminal charges have been dismissed either on merits or because of passing the status of limitation period.

The seizure is lifted entirely but to protect the civil parties, namely Faber and State Authority which manages the State assets, a temporary seizure is kept up to USD 106 million over 4 Rompetrol Rafinare S.A.’ installations for a limited period of 30 days. If the said civil parties will not fill in a civil claim to the civil courts against Group companies, this temporary seizure is also null and void. If they still do, then it is up to the civil court to assess the grounds for keeping such a seizure in place until the civil claim will be settled.

Both Faber and AAAS and the Group challenged it. The Group challenged the Ordinance on December 27, 2019, requiring having the relevant criminal charges dismissed on merits and not because of passing the status of limitation. On February 7, 2020 DIICOT rejected the Group challenge against December 5, 2019 Ordinance. The group submitted to Supreme Court challenge against the DIICOT rejection and the first hearing is scheduled for April 8, 2020. The last term was schedule for May 29, 2020 and the Court postpone it for June 26, 2020 to allow the parties to prepare their defences. On July 10, 2020, the Supreme Court issued the final decision according to which all the complaints formulated against the dismissal ordinance issued on December 5, 2019, were rejected as inadmissible.

Faber submitted a civil claim to the Bucharest court against both the Group companies and defendants.

On May 25, the Bucharest Court rejected the request of Faber for settlement of the stamp fee that Faber should pay for its claim (for the time being is USD 530,000). On July 8, Bucharest Court annulled Faber’s claim as unstamped.

On the other hand, Faber resumed one of the older files by which Faber challenged the increasing of the Rompetrol Rafinare S.A. share capital back in 2003 - 2005. The hearing was scheduled for April 14, but the case has been suspended due to the emergency enforced since 16 March 2020. On July 20, 2021, Ialomita Tribunal rejected Faber's and Balkan’s claim.

resuming the claims as being formulated by a person without quality. Briefly, the files regard the followings:

1. Cancellation of the statutory documents issued in 2001 when the share capital was increased due to the evaluation of fixed assets. The first stage of the file was won, now Faber is asking to resume the appeal. 2. Cancellation of the statutory documents issued in 2001 regarding the change of the name of the company (Rompetrol Rafinare S.A.), additional activities and change the Articles of Association (“AoA”) according to the company law; 3. Cancellation of the statutory documents issued in 2003 regarding the evaluation of land and increasing the share capital by Rompetrol S.A. (“RPSA”) with this land; 4. Cancellation of the statutory documents issued in 2002 regarding the evaluation of assets (construction, equipment) by which RPSA contributed to Rompetrol Rafinare S.A. share capital increase 5. Cancellation of the statutory documents issued in 2003 regarding the contribution in kind made by Rompetrol Downstream (“DWS”), Rompetrol Well Services (“RWS”), RPSA to Rompetrol Rafinare S.A. share capital; 6. Cancellation of the statutory documents issued in 2001 regarding the share capital increase according to the privatization contract;

Plus, Faber submitted a request for the revision of a decision by which the court closed a file being out of date/obsolete (when Court asked the plaintiff to do something and it doesn’t within 6 months /1 year). On April 28, 2021, Constanta Tribunal admitted the exception raised by Rompetrol Rafinare and decided that the revision filed by Faber is late.

Against the Decisions pronounced in the above cases, Faber together with Balkan filed appeals, some of them being already registered with the Constanta Court of Appeal, with trial terms being established during September and October 2021.

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5.3. Other significant transactions

În mod constant şi regulat au loc tranzactii semnificative, avand ca obiect furnizarea de bunuri şi servicii, cu companii din Grupul KMG International.

Rompetrol Rafinare a raportat actele juridice încheiate în cursul semestrul I 2021 de către Societate în conformitate cu art. 92^3 din Legea nr. 24/2017 aşa cum a fost completată si modificata prin Legea nr. 158/2020 şi cu art. 144 lit. B din Regulamentul ASF nr. 5/2018, prin Rapoartele curente înregistrate la Societate cu nr. 988 din data de 17.02.2021 şi nr. 3547 din data de 25.06.2021. Raportele au fost transmise operatorului de piaţă (respectiv Bursei de Valori Bucureşti), postate pe site-ul societăţii în secţiunea Relaţia cu Investitorii www.rompetrol-rafinare.ro subsecţiunea Rapoarte Curente precum şi pe site-ul ASF (www.asfromania.ro) în secţiunea: Supraveghere/Piaţa de capital/Raportări electronice.

5.4. Subsequent events

- On July 2, 2021 there was an explosion followed by a fire at Petromidia refinery, Diesel Hydrotreatment Unit (in Romanian “instalatia Hidrofinare Petrol Motorina” hereinafter HPM plant), which affected both HPM unit and Kerosene Hydrotreater (“HPR’’) and Catalytic Reformer (“RC”) units. Pipes belonging to the Naphta Hydrotreater and Saturated Gases (“FG”) units were also affected whose route was in the vicinity of the areas affected by the fire. As a result of the incident, 1 (one) employee of the company died and 4 (four) employees was hospitalized in Constanta. Out of four, two employees were transferred at an Emergency Clinical Hospital in Bucharest and then were transferred for medical treatment to a specialized clinic abroad. Despite all efforts of the medical staff, the two colleagues who were transferred to a specialized medical unit abroad died.

The criminal investigations are carried out by the Prosecutor's Office attached to the Constanta Tribunal; a technical expertise is being carried out by INCD INSEMEX Petrosani, at the request of the criminal investigation bodies; in the criminal case the company has the quality of a civilly responsible party; hearings of the employees involved in the event are held. At the same time, the collective work accident is being investigated by the Territorial Labor Inspectorate according to the incident legislation. Page 54 of 60

As a consequence of this event, starting with July 02, 2021 the entire Petromidia Refinery production has been temporarily stopped, until the facilities damaged by this incident will be in function again. The company is currently making its own assessments in order to estimate the level of the caused damages by the accident, depending on which it will be estimated the period necessary to carry out the necessary repairs and verifications in order to put the refinery’s units back into operation safely, following to adequately reflect the financial impact as soon as it is known. The Net book value at June 30, 2021 of the affected installations by the incident are: HPM (RON 28.5 million); HPR (RON 27.5 million); RC (RON 63.5 million); HB (RON 43.1 million); FG (RON 12.7 million).

- Rompetrol Rafinare S.A credit facility in amount of EURO 30 million granted by Banca Transilvania was extended until January 31, 2022.

- Rompetrol Rafinare S.A credit facility in amount of EURO 27,96 million granted by Banca Transilvania was extended until January 31, 2022.

5.5. Amendment of the Articles of Association of the Company

By Resolution no. 4/2021 of the Extraordinary General Meeting of Shareholders of April 28, 2021 the amendment and updating of the Articles of Association of Rompetrol Rafinare SA were approved, in accordance with the Note presented to shareholders for this item on the agenda (item 1 of the EGMS agenda from April 28, 2021). The amendment concerns: the transfer made by the Depozitarul Central S.A. (Bucharest Central Depository) of the shares held by the Romanian State issued by Rompetrol Rafinare, from the Romanian State account through the Ministry of Economy, Energy and Business Environment to the Romanian State account through the Ministry of Energy as a result of the implementation of the provisions of art. 12, para. (2) of HG 316/2021 on the organization and functioning of the Ministry of Energy and the updating of the corresponding articles of the Articles of Association of the Company, in this case sub-item 2) of article 1 called “Shareholders”, point 1.1., Letter A. “Significant shareholders” of the Articles of Association of the Company as follows:

“2) The Romanian State represented by the Ministry of Energy holds 19,715,009,053 shares, fully paid, amounting to RON 1,971,500,905.3, representing 44.6959% of the share capital;".;

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6. MAIN FINANCIAL INDICATORS AS OF 30.06.2021

Indicators Calculcation U.of M Value 30.06.2021*) 1. Current liquidity indicator Current assets/Current x 0.46 liabilities 2. Debt liquidity indicator 2.1. Debt ration indicator (1) Borrowed capital/Own % 55.55% capital x 100 2.2. Debt ratio indicator (2) Borrowed % 35.71% capital/Committed capital x 100 3. Rotation tempo of debits – clients Average balance for Days 34.26 receivables/Revenues x 180 4. Assets rotation tempo **) Revenues/Non- 2.33 current assets

*) Based on the Individual Interim Financial Accounting on the date and for the period of 6 months closed on June 30, 2021; **) Assets rotation tempo is calculated based on annualized turnover for the period January- June 2021 (360 days/180 days).

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7. ANEXE

Annex 1 – Statement of financial position as of 30 June 2021

Lei June 30, 2021 December 31, 2020

Intangible assets 27,403,404 26,873,710 Goodwill 152,720 152,720 Property, plant and equipment 3,454,307,319 3,623,946,290 Rights of use assets 57,157,021 58,002,943 Investments in subsidiaries 1,629,023,359 1,629,020,055 Total non current assets 5,168,043,823 5,337,995,718

Inventories, net 981,264,823 527,073,050 Receivables and prepayments, net 1,514,916,548 1,167,390,890 Derivative Financial Instruments 188,200 - Cash and cash equivalents 158,308,076 365,595,493 Total current assets 2,654,677,647 2,060,059,433

TOTAL ASSETS 7,822,721,470 7,398,055,151

Subscribed share capital 4,410,920,573 4,410,920,573 Share premium 232,637,107 232,637,107 Revaluation reserves, net of deferred tax impact 496,303,998 509,938,277 Other reserves 3,389,297,090 3,395,246,289 Accumulated losses (7,199,500,822) (6,567,312,044) Current year result (256,401,130) (645,823,057) Total equity 1,073,256,816 1,335,607,145

Long-term borrowings from banks 596,159,985 570,759,324 Provisions 297,034,901 297,034,901 Long-term lease debts 56,973,416 56,981,732 Deferred tax liability 9,417,626 9,417,626 Total non-current liabilities 959,585,928 934,193,583

Trade and other payables 5,389,018,774 4,774,877,899 Contract liabilities 82,388,516 91,363,247 Short-term lease debts 2,694,366 2,542,555 Derivatives 11,401,673 617,651 Short-term borrowings from related parties - 48,949,030 Short-term borrowings from banks 304,375,397 209,904,041 Total current liabilities 5,789,878,726 5,128,254,423

TOTAL LIABILITIES AND EQUITY 7,822,721,470 7,398,055,151

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Annex 2 – Profit and loss account for the 6-month period closed on June 30, 2021 profit and loss

Lei

January - June January - June 2021 2020

Net revenues from contracts with customers 6,016,523,533 3,882,494,802 Cost of sales (5,884,129,865) (4,127,279,901)

Gross profit / (loss) 132,393,668 (244,785,099)

Selling, general and administrative expenses (129,263,015) (197,125,528) Other operating expenses (47,038,975) (161,787,932) Other operating income 8,806,087 166,669,520

Operating revenue / (loss) (35,102,235) (437,029,040)

Financial expenses (77,032,127) (98,178,166) Financial revenues 5,564,138 9,110,068 Rezultatul financiar,net - Net foreign exchange gains / (losses) (149,830,906) (66,016,980)

Loss before income tax (256,401,130) (592,114,118)

Deferred tax - -

Net Loss (256,401,130) (592,114,118)

Earnings per share (bani/share) (0.58) (1.34) Basis

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Annex 3 – Cash flow Lei June 30, 2021 June 30, 2020 Net result before income tax (256,401,130) (592,114,118) Adjustments for: Depreciation and amortization 194,297,738 170,663,763 Provisions for receivables and inventories (incl write-off) 12,313,877 (4,563,222) Expenses with penalties 2,899,194 42,535 Interest expenses 77,032,127 98,178,166 Inrerest income (5,564,138) (9,110,068) (Gain)/Loss on sale or disposal of assets (1,050) - Other non-monetary adjustments (65,353) 2,391,239 Unrealised foreign exchange (gain)/loss 140,058,850 10,523,785 Cash generated from / (used in) operations before working capital changes 164,570,115 (323,987,920)

Net working capital changes in: Receivables and prepayments (393,263,685) 508,974,219 Inventories (468,668,172) 317,454,292 Trade and other payables and contract liabilities, including payables variation for capital expenditures 22,556,701 160,506,543 Change in working capital (839,375,156) 986,935,054

Net cash provided by / (used in) operating activities (674,805,041) 662,947,134

Cash flows from investing activities Purchase of property, plant and equipment (19,584,060) (414,750,434) Purchase of intangible assets (3,888,193) (3,062,416) Purchase of investments (3,304) - Receipts from selling of assets 1,050 - Net cash used in investing activities (23,474,507) (417,812,850)

Cash flows from financing activities Cash pooling movement 517,667,789 166,715,337 Short - term loans (paid to) / received from banks 86,186,668 (10,208,223) Long - term loans received from banks 0 (238,360,396) Short - term loans repaid to shareholders and related parties (34,452,042) (43,677,500) Lease repayments (2,340,582) (5,001,169) Interest and bank charges paid, net (76,069,702) (97,992,626)

Net cash used in financing activities 490,992,131 (228,524,576)

Increase / (Decrease) in cash and cash equivalents (207,287,417) 16,609,708

Cash and cash equivalents at the beginning of period 365,595,493 22,373,528

Cash and cash equivalents at the end of the period 158,308,076 38,983,236

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Note: I) During the period under review the Articles of Association of the Company was changed on April 29, 2021 as described in section 5.5.

II) Please note that the individual financial statements were prepared in accordance with the Order of the Ministry of Public Finance No. 2844/2016 for the approval of Accounting Regulations in accordance with International Financial Reporting Standards ("IFRS") and have not been audited

Chairman of the Board of Directors of ROMPETROL RAFINARE S.A.

______Yedil UTEKOV

General Manager Financial Manager

______Felix CRUDU-TESLOVEANU Ramona-Georgiana GĂLĂŢEANU

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REPORT OF THE BOARD OF DIRECTORS OF ROMPETROL RAFINARE ON THE CONSOLIDATED FINANCIAL STATEMENTS PREPARED AS OF JUNE 30, 2021

The figures include consolidated financial statements in accordance with International Financial Reporting Standards („IFRS”). Consolidated financial statements of Rompetrol Rafinare Group include the results of the parent company Rompetrol Rafinare (“Company”) and its subsidiaries Rompetrol Petrochemicals S.R.L., Rom Oil S.A., Rompetrol Downstream S.R.L., Rompetrol Quality Control S.R.L and Rompetrol Logistics S.R.L. (with its subsidiary Rompetrol Gas S.R.L.).

COMPANY HISTORY

Rompetrol Rafinare S.A., Member Company of the KMG International Group, operates Petromidia Refinery located in Navodari, Constanta County. Starting with December 1, 2007, the company also operates Vega Refinery, located in Ploiesti, Prahova County.

Starting with January 1, 2014, Rompetrol Rafinare S.A. took over the operational facilities (polymer production and utilities) of Rompetrol Petrochemicals S.R.L.

The company processes a variety of crude oils with different content of sulphur. The crude oil feeding is carried out mainly through the marine terminal built by the KMG International Group, close to Petromidia Refinery, and the rest is carried out through Oil Terminal facilities in Constanta port. The products obtained can be delivered by railway, road and by sea.

At the end of 2008 the company also finalized the operations for the 350% expansion of the transit capacity for finished products through Midia harbor, by building two new loading and offloading berths, Berth 9B and Berth 9C. In 2012 Rompetrol Rafinare SA completed the extensive process of modernization that allowed expanding refining capacity to 5 million tonnes/year and efficient production and focus on the petroleum products required by the market.

Petromidia Refinery continued its production process optimization programs (i.e. increase of processing capacity alongside increased production performance of valuable products yields; reduce technological loss, crude diet optimization; constant supply of the crude, alternative and other feedstock; downstream Units operation optimization; mitigation of slowdown/shutdown/ unplanned events) and operating costs optimization (energy efficiency and processing cost reduction), programs successfully continued until present days.

In 2019, the Petromidia Refinery celebrated 40 years of activity, the period when it grow from an idea, to the largest profile unit in Romania and one of the most modern in the Black Sea region.

In 2020, the major Turnaround in Refinery performed during the pandemic period (starting in March and continued until the beginning of May), has been done with zero incidents showing excellent capabilities in risk prevention.

The number of employees of Rompetrol Rafinare S.A. and its subsidiaries at the end of June 2021 was 1,846.

The company employs best practices for attracting, retaining and motivating its employees, who are the principal contributors to the development of the Group. The company is fully committed to its responsibilities for their development and for the communities in which it operates.

English translation is for information purposes only. Romanian language text is the official text for submission. 1 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

COMPANY SHARES AND LISTING

Since April 7, 2004, the Company's shares are traded on the regulated market administrated by the Bucharest Stock Exchange SA ("BVB") under the symbol “RRC” and ISIN code ROPTRMACNOR5.

The Company's shares are traded on BVB Standard category. On 30.06.2021, the total number of shares issued by the Issuer is 44,109,205,726, representing a total share capital of 4,410,920,572.6 lei. The Company's shares are common, nominative, dematerialized, and the shareholder’s register is held by the DEPOZITARUL CENTRAL S.A. Bucuresti.

ROMPETROL RAFINARE SHAREHOLDERS STRUCTURE In the period under review there were no changes likely to influence the share capital of the Company. According to the Shareholders’ register consolidated on June 30, 2021, the structure of the Company’s significant shareholders is presented in the following graph:

The structure consolidated by the Depozitarul Central S.A. on 30.06.2021

6.6424% 0.54816%

48.1136% KMG INTERNATIONAL N.V.

ROMANIAN STATE, represented by Ministry of Energy

Legal persons, each holding less than 10% of the share capital

Natural persons, each holding less than 10% of the share capital 44.6959%

Note: At 30 June 2021, the shareholders of KMG International Group own a number of 24,098,569,799 shares, representing 54.6339% of the share capital.31 December 2017, the shareholders of KMG International Group own a number of 24,098,569,799 shares, representing 54.6339% of the share capital.

English translation is for information purposes only. Romanian language text is the official text for submission. 2 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

CORPORATE GOVERNANCE

In 2021, Rompetrol Rafinare continued the process of implementing good corporate governance practices so that the internal practices correspond qualitatively to the new requirements in respect of companies admitted to trading at BVB.

PRESENTATION OF THE COMPANY'S ADMINISTRATORS The Board of Directors is responsible for fulfilling all the measures necessary for the development of the Company's activity, as well as for supervising the activity. Its composition, organization, attributions and responsibilities are established by the Articles of Incorporation of the Company, available on our website (www.rompetrol-rafinare.ro, Investor Relations / Corporate Governance section, Corporate Governance Documents subsection).

As of June 30, 2021, the composition of the Board of Directors was as follows:  Yedil Utekov, citizen of the state of Kazakhstan, Chairman of the Board of Directors;  Alexey Golovin, citizen of the state of Kazakhstan, member of the Board of Directors;  Felix Crudu-Tesloveanu, Romanian citizen, executive member of the Board of Directors, also exercising the position of General Manager of the Company (starting with January 1, 2020);  Nicolae Bogdan Codrut Stanescu, Romanian citizen, member of the Board of Directors;  Bogdan-Catalin Steriopol, Romanian citizen, member of the Board of Directors.

Advisory committees In its activity, the Board of Directors is supported by two advisory committees, namely: the Audit Committee and the Strategy Committee, being responsible for conducting analyses and developing recommendations for the Board of Directors, in specific areas, having the obligation to submit periodically activity reports to the members of the Board of Directors.

Audit Advisory Committee The Committee was set up on the basis of Decision no. 1 of the Board of Directors of April 13, 2018.

Strategy Advisory Committee The Committee was set up on the basis of Decision no. 4 of the Board of Directors of April 20, 2019.

The detailed presentation of the attributions and responsibilities of the Advisory Committees can be found in the Organization and functioning Regulations approved by the Board of Directors, regulations published on the Company's website www.rompetrol-rafinare.ro, section Investor Relations - Corporate Governance - Corporate Governance Documents.

INVESTOR RELATIONS CONTACT The annual, semi-annual and quarterly reports are made available to shareholders upon request. Requests may be submitted electronically, via e-mail at: [email protected].

English translation is for information purposes only. Romanian language text is the official text for submission. 3 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

FINANCIAL HIGHLIGHTS – CONSOLIDATED

H1 2021 H1 2020 % H1 2021 H1 2020 % Financial USD USD RON RON

Gross Revenues 2,285,238,133 1,525,454,497 50% 9,466,598,967 6,319,195,254 50% Net Revenues 1,645,165,714 1,055,899,842 56% 6,815,098,970 4,374,065,095 56%

EBITDA 68,823,277 (43,678,808) N/A 285,100,425 (180,939,462) N/A EBITDA margin 4.2% -4.1% 4.2% -4.1%

EBIT (1,194,254) (100,075,872) 99% (4,947,198) (414,564,300) 99%

Net profit / (loss) (22,824,507) (126,471,111) 82% (94,550,520) (523,906,579) 82% Net Profit / (loss) margin -1.4% -12.0% -1.4% -12.0%

Rompetrol Rafinare consolidated gross revenues reached approximatively 2.3 billion in H1 2021, higher by 50% as against H1 2020 as result of increase in sales, alongside increase of international quotations for petroleum products.

The company’s consolidated results have been supported by an increase in the volume of processed raw materials and of the petroleum products sold, as well as by the increase in refining margin (27.5 USD/to in H1 2021 as against 5.5 USD/to in H1 2020).

English translation is for information purposes only. Romanian language text is the official text for submission. 4 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

ECONOMIC ENVIRONMENT

H1 2021 H1 2020 %

Brent Dated USD/bbl 65.0 40.1 62% Ural Med USD/bbl 63.6 39.2 62% Brent-Ural Differential USD/bbl 1.4 0.9 59%

Premium Unleaded 10 ppm FOB Med USD/tonne 604 367 65% Diesel ULSD 10 ppm FOB Med USD/tonne 519 365 42%

RON/USD Average exchange rate 4.07 4.37 -7% RON/USD Closing exchange rate 4.14 4.32 -4%

RON/EURO Average exchange rate 4.90 4.82 2% RON/EURO Closing exchange rate 4.93 4.84 2%

USD/EURO Closing rate 1.19 1.12 6%

Inflation in Romania* 3.42% 1.55% 121% Source: Platts, * INSSE (Inflation in Romania is calculated based on CPI - i.e. Consumer Price Index)

Dated Brent increased by +24.9$/bbl. (+62%) in H1 2021 as against H1 2020 and settled to an average of 65$/bbl.

According to International Energy Agency (IEA) the supply glut created by the global pandemic has cleared, even as demand suffers a blow from a resurgence of the virus in India.

OPEC+ compliance with oil production cuts in April reached 113%. At its June 1 meeting OPEC+ decided to proceed with existing plans to raise official July quotas by 440,000 b/d over June. Saudi Arabia will also bring back the remaining 400,000 b/d of its extra, unilateral 1 million b/d cut.

English translation is for information purposes only. Romanian language text is the official text for submission. 5 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

European margins decreased by -18$/MT (-59%) in H1 2021 as against H1 2020 and settled to an average level of 12.4$/MT.

Even if the margins were lower as against H1 2020, they had an increasing trend during H1 2021, with major positive impact coming from gasoline cracks and low Urals-Dated Brent differential.

Diesel cracks experienced moderate gains during Q1, supported by an increasing export to the US. Positive developments on the demand side were almost offset by increasing supply due to switching jet yields into diesel pool. But Diesel cracks strengthened during Q2, supported by rapid demand recovery across the continent. Strengthening industrial performance and easing mobility restrictions have stimulated both road freight demand and private consumption. The Mediterranean diesel market is likely to strengthen not only because of higher demand but largely because refiners will at some point stop putting jet fuel into the diesel pool.

Jet cracks had little marginal improvement during Q1, reaching their highest level since the start of the COVID pandemic. The removal of quarantine requirements across much of the EU helped jet cracks to recover during Q2. Currently, jet yields are in recovery mode and the supply pressure to the diesel pool is easing.

In terms of exchange rates, internally, the RON/EUR exchange rate continued its upward movement, averaging in H1 2021 at 4.9007 by approximatively +2% higher as against same period last year, and reaching its maximum level, for this year, of 4.9279 on April 20, 2021.

The RON/USD exchange rate also continued its upward movement, averaging in H1 2021 at 4.0674, but still below H1 2020 levels.

*The information is based on analysis provided by JBC Energy GmbH and National Bank of Romania

English translation is for information purposes only. Romanian language text is the official text for submission. 6 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

REFINING SEGMENT

H1 2021 H1 2020 % H1 2021 H1 2020 % Financial USD USD RON RON

Gross Revenues USD/RON 1,888,567,388 1,202,484,821 57% 7,823,390,405 4,981,293,371 57% Net Revenues USD/RON 1,348,459,397 830,234,999 62% 5,585,993,052 3,439,248,483 62% EBITDA USD/RON 12,262,540 (50,249,588) N/A 50,797,572 (208,158,918) N/A EBITDA margin % 0.9% -6.1% 0.9% -6.1% EBIT USD/RON (35,261,002) (86,890,379) 59% (146,068,701) (359,943,396) 59% Net profit / (loss) USD/RON (42,320,106) (110,305,138) 62% (175,311,039) (456,939,035) 62% Net profit / (loss) margin % -3.1% -13.3% -3.1% -13.3%

Gross cash refinery USD/(RON)/t 27.5 5.5 404% 114.0 22.6 404% margin/tonne (Petromidia) Gross cash refinery USD/(RON) 3.8 0.8 404% 15.7 3.1 404% margin/bbl (Petromidia) /bbl

Net cash refinery USD/(RON)/t (2.2) (25.4) 91% (9.0) (105.3) 91% margin/tonne (Petromidia) Net cash refinery margin/bbl USD/(RON)/bbl (0.3) (3.5) 91% (1.2) (14.5) 91% (Petromidia)

Operational Feedstock processed in thousand 2,726 2,116 29% Petromidia refinery tonnes Feedstock processed in thousand 188 154 22% Vega refinery tonnes

thousand Gasoline produced 701 520 35% tonnes thousand Diesel & jet fuel produced 1,378 1,179 17% tonnes

thousand Motor fuels sales - domestic 1,222 1,038 18% tonnes thousand Motor fuels sales - export 742 583 27% tonnes

Export % 38% 36% Domestic % 62% 64% Refining segment comprises the results of the company Rompetrol Rafinare related to Petromidia and Vega refineries. Rompetrol Rafinare computes Gross refinery margin as follows - (Oil Product Sales – Cost of Feedstock) / Quantity of sales. Net Refinery margin is the EBITDA divided by quantity of sales.

Gross revenues of refining segment reached over USD 1.88 billion in H1 2020, showing a 57% increase on half year level, as against same period last year.

English translation is for information purposes only. Romanian language text is the official text for submission. 7 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

In H1 2021, the total throughput for Petromidia refinery was 2.73 million tonnes, higher by 29% compared with the same period last year when the total throughput was 2.12 million tonnes in H1 2020.

In H1 2020, the refining capacity utilization in Petromidia refinery was 87.61%, higher by 26.5% compared with the same period last year.

This increase is correlated with continues operation for refinery in H1 2021 compering with planned shut-down in March - April 2020 for turnaround activity and COVID-19 pandemics measures.

Petromidia refinery managed to achieve in H1 2021 a good refining operational performance, for its main technological and operational parameters, such as:

 White finished products yield of 84.67%wt;  Technological loss of 0.86%wt;  Energy Intensity Index of 100.95%.

In respect of Vega refinery (the oldest processing unit operating in Romania (since 1905) and the only domestic producer of bitumen and hexane), the total throughput was 188,187 tonnes in H1 2021, higher by 22.1% compared with the same period last year when the total throughput was 154,122 tonnes in H1 2020.

For the first six months of 2021 the refining capacity utilization was 114.05%, higher by 20.65% compared with the same period last year.

Vega refinery also managed to achieve in the first half of 2021 good refining performance results, of which the following are emphasized:

 Technological loss of 0.63%;  Energy consumption of 2.56 GJ/t;  Mechanical Availability of 98.7%.

The refining segment’s financial results in H1 2021, were positively affected by the increase in the volume of processed raw materials and of the petroleum products sold, as well as by the increase in gross refining margin (27.5 USD/to in H1 2021 as against 5.5 USD/to in H1 2020).

Petromidia refinery continued its production process optimization programs (i.e. increase of processing capacity alongside increased production performance of valuable products yields; reduce technological loss, crude diet optimization; constant supply of the crude, alternative and other feedstock; downstream Units operation optimization; mitigation of slowdown/shutdown/ unplanned events) and operating costs optimization (energy efficiency and processing cost reduction), programs successfully continued until present days.

Rompetrol Rafinare S.A. continued to be an important contributor to Romania’s fiscal budget with over USD 838 million in H1 2021.

English translation is for information purposes only. Romanian language text is the official text for submission. 8 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

PETROCHEMICALS SEGMENT

H1 2021 H1 2020 % H1 2021 H1 2020 % Financial USD USD RON RON

Revenues USD/RON 115,092,277 62,556,178 84% 476,769,757 259,138,967 84% EBITDA USD/RON 14,308,490 (15,677,242) N/A 59,272,920 (64,942,975) N/A EBIT USD/RON 5,483,754 (23,185,270) N/A 22,716,450 (96,044,981) N/A Net profit / (loss) USD/RON 4,411,050 (24,186,426) N/A 18,272,774 (100,192,270) N/A

Operational Propylene processed thousand tonnes 72 48 49% Ethylene processed thousand tonnes 24 28 -13%

Total polymers production thousand tonnes 68 61 12%

Sold from own production thousand tonnes 70 71 -2% Sold from trading thousand tonnes 0.5 0.0 N/A Total sold thousand tonnes 71 71 -1%

Export % 44% 41% Domestic % 56% 59% Petrochemicals segment comprises the petrochemicals activity from Rompetrol Rafinare and the activity of Rompetrol Petrochemicals SRL

The current petrochemicals activity is carried out through PP and LDPE units.

In terms of low density polyethylene unit (LDPE), the petrochemicals segment works 100% with ethylene from import, and for PP (polypropylene) unit is ensured through raw material produced and distributed entirely by Petromidia refinery.

In H1 2021, the total polymers production for Petrochemicals area was 68 thousand tons, higher by 12% as against H1 2020 when the total polymers production was 61 thousand tons. The increase in H1 2021 is mainly due to turnaround activities that took place in 2020.

Progressive results for the Petrochemical division, despite the stop of the LDPE plant for two and an half months, and polymers quotations very abrupt increase positively affecting the results.

The petrochemicals segment is the sole polypropylene and polyethylene producer in Romania and has constantly succeeded to increase its market share on secondary categories of products. Its dynamic development strategy has secured the company a competitive position on the domestic market and in the region – the Black Sea and Mediterranean region and the Eastern and Central Europe, aiming to keep the competitive advantage once the market stabilizes.

English translation is for information purposes only. Romanian language text is the official text for submission. 9 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

MARKETING SEGMENT

H1 2021 H1 2020 % H1 2021 H1 2020 %

Financial USD USD RON RON

Gross Revenues USD/RON 1,514,315,946 1,044,994,900 45% 6,273,053,806 4,328,891,373 45% EBITDA USD/RON 42,300,471 19,639,121 115% 175,229,701 81,355,059 115% EBIT USD/RON 28,857,269 7,491,018 285% 119,541,238 31,031,542 285% Net profit / (loss) USD/RON 15,360,746 5,513,548 179% 63,631,892 22,839,872 179% Operational Fuels quantities sold in thousand 424 347 22% retail tonnes Fuels quantities sold in thousand 611 503 21% wholesale tonnes thousand LPG quantities sold 185 144 28% tonnes Marketing segment includes the results of Rompetrol Downstream, Rom Oil, Rompetrol Quality Control Rompetrol Logistics and Rompetrol Gas

In H1 2021 the marketing segment had a turnover of over USD 1.5 billion, higher by 45% as compared with same period last year; Marketing Segment result performance for H1 2021 reached a level EBITDA of USD 42.3 million (i.e. +115% or +22.7 million USD over H1 2020).

In the H1 of 2021, the average Platts quotations (FOB Med Italy) in USD (reference currency) increased by +42% for diesel and by +65% for gasoline compared with the similar period of 2020. Due to the 7% appreciation of the RON against the US dollar (H1 2021 vs. H1 2020, on average) the international diesel quotation increased in the national currency by +32%, in the same time the international gasoline quotation increased in the national currency by +53% compared to H1 2020.

Fuel sales (retail and wholesale), for the first six months of 2021 amounted to 1.035 million tonnes, +22% versus the same period last year. Overall, sales reached 1.22 million tonnes in H1 2021, higher as against same period last year by 23%.

At the end of June 2021, the Rompetrol Downstream’s distribution segment contained 1068 points of sale, including the network of owned stations, partner stations and mobile stations: expres, cuves and internal bases.

During H1 2021, Rompetrol Gas increased its retail sales volume performance by +18% compared to H1 2020, while LPG Auto, LPG domestic and Propane wholesale performance within Romania reached 87.5 ktonnes, +50% above H1 2020.

Rompetrol Quality Control is an independent and competitive company on the laboratory analysis market, which grants its results as reliable proof for third parties and Group companies. In 2021, Rompetrol Quality Control (RQC) continued the good results from last year in order to consolidate its overall market share and to increase the turnover and profitability from third-party customers.

English translation is for information purposes only. Romanian language text is the official text for submission. 10 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

APPENDIX 1 – CONSOLIDATED INCOME STATEMENT AS OF JUNE 30, 2021, UNAUDITED

H1 2021 H1 2020 % H1 2021 H1 2020 % USD USD RON RON

Gross Revenues 2,285,238,133 1,525,454,497 50% 9,466,598,967 6,319,195,254 50% Sales taxes and discounts (640,072,419) (469,554,655) 36% (2,651,499,997) (1,945,130,159) 36%

Net revenues 1,645,165,714 1,055,899,842 56% 6,815,098,970 4,374,065,095 56%

Cost of sales (1,532,650,870) (1,048,962,329) 46% (6,349,006,229) (4,345,326,449) 46%

Gross margin 112,514,844 6,937,513 1522% 466,092,741 28,738,646 1522%

Selling, general and administration (104,025,941) (108,358,457) -4% (430,927,461) (448,874,907) -4% Other operating income 5,622,342 43,910,759 -87% 23,290,552 181,900,319 -87% Other operating expenses (15,305,499) (42,565,687) -64% (63,403,030) (176,328,358) -64% EBIT (1,194,254) (100,075,872) 99% (4,947,198) (414,564,300) 99%

Finance, net (19,461,190) (23,376,193) -17% (80,617,980) (96,835,880) -17% Unrealized net foreign exchange 6,350,562 (3,540,707) N/A 26,307,203 (14,667,380) N/A (losses)/gains Realized net foreign exchange (5,772,866) 426,278 N/A (23,914,096) 1,765,857 N/A (losses)/gains EBT (20,077,748) (126,566,494) 84% (83,172,071) (524,301,703) 84%

Income tax (2,746,759) 95,383 N/A (11,378,449) 395,124 N/A

Net result (22,824,507) (126,471,111) 82% (94,550,520) (523,906,579) 82%

EBITDA 68,823,277 (43,678,808) N/A 285,100,425 (180,939,462) N/A

English translation is for information purposes only. Romanian language text is the official text for submission. 11 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

APPENDIX 2 – CONSOLIDATED BALANCE SHEET JUNE 30, 2021, UNAUDITED

December 31, June 30, December 31, June 30, 2021 % % 2020 2021 2020

USD USD RON RON Assets Non-current assets Intangible assets 10,753,854 10,970,907 -2% 44,547,840 45,446,982 -2% Goodwill 82,871,706 82,871,706 0% 343,296,042 343,296,042 0% Property, plant and equipment 1,114,363,286 1,168,350,972 -5% 4,616,249,901 4,839,893,893 -5% Right of use assets 79,181,128 76,543,589 3% 328,007,823 317,081,820 3% Financial assets and other 3,734,366 4,161,618 -10% 15,469,611 17,239,502 -10% Total Non Current Assets 1,290,904,340 1,342,898,792 -4% 5,347,571,217 5,562,958,239 -4%

Current assets Inventories 323,480,911 202,167,399 60% 1,340,019,673 837,478,453 60% Trade and other receivables 596,069,800 553,537,032 8% 2,469,219,147 2,293,027,156 8% Derivative financial Instruments 1,028,190 209,030 392% 4,259,277 865,907 392% Cash and cash equivalents 77,674,063 100,655,956 -23% 321,764,806 416,967,298 -23% Total current assets 998,252,964 856,569,417 17% 4,135,262,903 3,548,338,814 17%

Total assets 2,289,157,304 2,199,468,209 4% 9,482,834,120 9,111,297,053 4%

Equity and liabilities Total Equity 397,710,072 421,297,060 -6% 1,647,513,966 1,745,223,067 -6%

Non-current liabilities Long-term debt 240,000,000 240,000,000 0% 994,200,000 994,200,000 0% Provisions 79,332,744 79,332,744 0% 328,635,892 328,635,892 0% Net obligations under lease agreements 82,829,888 81,816,635 1% 343,122,811 338,925,410 1% Other 3,910,823 4,695,869 -17% 16,200,584 19,452,638 -17% Total non-current liabilities 406,073,455 405,845,248 0% 1,682,159,287 1,681,213,940 0%

Current Liabilities Trade and other payables 1,362,920,021 1,267,733,760 8% 5,645,896,183 5,251,587,103 8% Contract liabilities 36,299,218 30,912,849 17% 150,369,510 128,056,477 17% Derivative financial instruments 2,752,364 375,916 632% 11,401,668 1,557,232 632% Net obligations under lease agreements 4,439,977 4,003,884 11% 18,392,605 16,586,089 11% Short-term debt 73,496,047 65,291,249 13% 304,457,375 270,468,998 13% Profit tax payable 5,466,150 4,008,243 36% 22,643,526 16,604,147 36% Total current liabilities 1,485,373,777 1,372,325,901 8% 6,153,160,867 5,684,860,046 8%

Total equity and liabilities 2,289,157,304 2,199,468,209 4% 9,482,834,120 9,111,297,053 4%

English translation is for information purposes only. Romanian language text is the official text for submission. 12 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

RISK MANAGEMENT The Group’s activities expose it to a variety of risks including the effects of: changes in the international quotations for crude oil and petroleum products, foreign currency exchange rates and interest rates. The Group’s overall risk management main objective is to minimize the potential adverse effects on the financial performance of the Group companies and to develop a culture of risk awareness where all stakeholders proactively contribute to protect Group’s financial results from market volatility, to minimize future losses and optimize returns to maximize shareholder value.

In 2021, due to global pandemic crisis, the focus of risk management was to perform a comprehensive assessment and understanding of all potential impacts that current crisis might have on our business and develop immediate mitigation in order to reduce the potential effects of Covid-19 outbreak.

Crisis Scenarios have been developed and implemented at all levels and close monitoring of the situation have been performed. The primary focus was to ensure health and safety of all our employees, but also multiple measures were taken in order to ensure business continuity: cost optimization, adapting the production and sales to the new environment, proper cash management and balance of receivables and payables to ensure proper liquidity and business functioning.

INTEREST RATE RISK Interest rate price risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates relative to the interest rate that applies to the financial instrument. Interest rate cash flow risk is the risk that the interest cost will fluctuate over time. The Group has long-term debt and short-term debt that incur interest at fixed and variable interest rates that exposes the Group to both fair value and cash flow risk.

FOREIGN EXCHANGE RISK The Group's functional currency is United States Dollar (“USD”) and crude oil imports and a significant part of petroleum products are all denominated principally in US Dollars, therefore, limited foreign currency exposure arises in this context. Certain assets and liabilities are denominated in foreign currencies, which are translated at the prevailing exchange rate at each balance sheet date. The resulting differences are charged or credited to the income statement but do not affect cash flows. Group Treasury is responsible for handling the Group foreign currency transactions.

LIQUIDITY AND CASH FLOW RISKS The liquidity risk consists in not having financial resources available in order to fulfil company obligations when they are due. Based on the forecasted cash flow, the management of the company checks daily the liquidity level and ensures the fulfilment of obligations to suppliers, to the state budget, to the local tax authorities etc. according to their maturity. The current and immediate liquidity ratios are monitored permanently. One of the concerns of the management of Rompetrol Rafinare is to know the effects of all these risks in order to ensure that the economic-financial activity of the company is carried out without any problems. Rompetrol Rafinare is part of the cash pooling facility of the KMGI Group and therefore can cover unexpected cash outflows by drawing from the facility.

The risk is managed through financial processes, cash-flow projections and stress tests, maintaining a sufficient cash buffer, regular reviews of market conditions and our planning and investment processes. Liquidity was put on the pressure this year due to adverse macroeconomic conditions, but proper cash management measures were implemented both in operational and financial areas. Existing favourable legislation related to Covid -19 in Romania that allowed some taxes to be postponed, very close monitoring of collection in order to avoid deterioration commercial negotiations and increase of some facilities allowed the company to mitigate this risk in order to avoid any material liquidity incidents.

English translation is for information purposes only. Romanian language text is the official text for submission. 13 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

CREDIT RISK Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract leading to a financial loss. The Group is exposed to credit risk from its operating activities primarily for trade receivables and from its financing activities including bank deposits, foreign exchange transactions and other financial instruments.

- Trade receivables

The Group is exposed to credit risk. Overdue customer receivables are regularly monitored. The requirement for impairment is analysed on a regular basis, being undertaken on an individual basis as well as collectively on the basis of ageing.

- Financial instruments and bank deposits

Credit risk from balances with banks and financial institutions is managed by the Group’s treasury in accordance with the Group’s policy.

COMMODITY PRICE RISK The Group is affected by the volatility of crude oil, oil product and refinery margin prices. Its operating activities require ongoing purchase of crude oil to be used in its production as well as supplies to its clients. Due to significantly increased volatility of crude oil, the management developed a hedge policy which was presented to the Group’s Board of Directors and was approved in most significant aspects in 2010 and with some further amendments in February 2011. Following this approval, the Group started on January 2011 to hedge commodities held by Rompetrol Rafinare and in 2014 it was implemented a hedging program in Rompetrol Downstream.

According to the hedge policy, on the raw materials and petroleum products side, the flat price risk for priced inventories above a certain threshold (called base operating stock in case of Rompetrol Refinery, benchmark stock for Rompetrol Downstream) is hedged using future contracts traded on ICE Exchange and some OTC instruments. The base operating stock is the equivalent of priced stocks that are held at any moment in time in the Group, hence price fluctuations will not affect the cash-flow.

Trading activities are separated into physical effective transactions (purchase of raw materials and sales of petroleum to third parties or Intercompany) and paper trades (for economic hedging purposes). Each physical effective transaction is covered through a related futures position according to the exposure parameters set by management (i.e. based on physical quantities sold or purchased).

The Group sells or buys the equivalent number of future contracts based on the current position at that particular moment. This paper trade is done only to hedge the risk of the Physical Trade and not to gain from the trading of these instruments.

OPERATIONAL RISK The operational risk derives from the possibility that accidents, errors, malfunctions may occur, as well as from the influences of the environment upon the operating and financial results. Rompetrol Rafinare S.A. has continued a broad revamp process on the refinery technology, for the purpose of increasing the production, reducing the technological losses, as well as eliminating the accidental shut-downs in the industrial process. Also, the Company is preoccupied with maintaining and improving the quality-environment-safety integrated system on a constant basis, aiming to improve the organizational image, by complying with the requirements on quality, environmental protection and work

English translation is for information purposes only. Romanian language text is the official text for submission. 14 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

safety, by improving the relationship with the authorities and with the socio-economic society, by limiting the civil and criminal liability and by meeting the legal requirements for quality – environment – security.

The management system establishes clear rules and principles which govern key risk management activities such as inspections, maintenance, testing and trainings, business continuity and crisis response planning. Security risks affecting our people and operations are kept as well under close monitoring by specialized departments. This risk, perceived usually as being high due to the nature of our activity and treated as a high priority by our group, has increased during 2020 and 2021 when, alongside normal business challenges, additional risks were brought by Covid- 19 pandemic. All measures have been taken to protect the health and safety of our employees. Throughout all available communication channels, Rompetrol Rafinare S.A is continuously distributing to all its employee’s relevant information concerning appropriate infection prevention and control practices, particularly in how to react/ behave in case symptoms of infection are observed.

Preventing measures have been implemented (limited or forbidden business travel, local or international, flexible working schedule, work-from-home, online meetings, corporate events cancelled, body temperature monitoring, specific disinfectant solutions provided, rules & protocols in line with local applicable regulations). Testing program, both RT-PCR and antigen, continues in all entities. Rapid tests were distributed to key operations in order to frequently check condition of key personnel (refineries, depots and gas stations). Business lines/ units are continuously following and updating contingency plans. Workplaces sanitation with biocides is regularly performed.

RISK MANAGEMENT AND INTERNAL CONTROL The Group commitment to integrity, responsibility and ethical conduct is particularly important in the area of bribery and corruption prevention and detection. The Group is committed to conducting its business fairly, honorably, with integrity and honesty and in compliance with all applicable laws. The Group adopts an approach of zero-tolerance to bribery and corruption in all its business dealings and relationships, wherever it operates. Whistleblowing incidents are taken very seriously by the Group and its directors. Any complaints or allegations received are investigated properly by the assigned departments. The Group has established and maintained an open channel to handle and discuss internal reports concerning finance, internal control and fraud to ensure that all reports will receive enough attention. The internal investigations conducted during 2021 did not reveal any cases of ethical misconduct and non-compliance with applicable laws and regulations.

English translation is for information purposes only. Romanian language text is the official text for submission. 15 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com

SUBSEQUENT EVENTS

On July 2, 2021 there was an explosion followed by a fire at the Petromidia refinery Diesel Hydrotreatment Unit (in Romanian “instalatia Hidrofinare Petrol Motorina” hereinafter HPM unit), which affected both HPM unit and Kerosene Hydrotreater (“HPR’’) and Catalytic Reformer (“RC”) units. Pipes belonging to the Naphta Hydrotreater and Saturated Gases (“FG”) units were also affected, whose route was in the vicinity of the areas affected by the fire. As a result of the incident, 1 employee of the company died and 4 employees were hospitalized in Constanta. Out of four, two employees were transferred at an Emergency Clinical Hospital in Bucharest and then were transferred for medical treatment to a specialized clinic abroad. Despite all efforts of the medical staff, the two colleagues who were transferred to a specialized medical unit abroad died. The competent authorities were informed regarding the accident, the consequences and the situation of the employees involved, injured and dead. The criminal investigations are carried out by the Prosecutor's Office attached to the Constanta Tribunal. A technical expertise is being carried out by INCD INSEMEX Petrosani, at the request of the criminal investigation bodies; in the criminal case the company has the quality of a civilly responsible party; hearings of the employees involved in the event are held. At the same time, the collective work accident is being investigated by the Territorial Labor Inspectorate according to the incident legislation. As a consequence of this event, starting 02 July the entire Petromidia Refinery production has been temporarily stopped, until the facilities damaged by this incident will be in function again. The company is currently making its own assessments in order to estimate the level of the caused damages by the accident, depending on which it will be estimate the necessary period to carry out the necessary repairs and verifications, in order to put the installations back into operation safely and to adequately reflect the financial impact as soon as it is known. The net book value as at June 30, 2021 of the affected units by the incident, of the Parent Company, Rompetrol Rafinare S.A., are: HPM (RON 28.5 million); HPR (RON 27.5 million); RC (RON 63.5 million); HB (RON 43.1 million); FG (RON 12.7 million).

Facilities granted to Rompetrol Rafinare S.A. by Banca Transilvania in amount of EUR 30 million and EUR 27.96 million have been extended until January 31, 2022.

Note:

The Board of Directors Report was prepared based on the unaudited consolidated financial statements. The functional currency, as basis for preparing the financial statements, is USD. RON currency is used as currency for presenting the informations in USD, according to the International Financial Reporting Standards. All the RON information were obtained by multiplying the USD values with the exchange rate USD/RON = 4.1425 as of 30 June 2021.

Chairman of the Board of Directors Yedil Utekov

General Manager Finance Manager Felix Crudu-Tesloveanu Ramona-Georgiana Galateanu

English translation is for information purposes only. Romanian language text is the official text for submission. 16 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com ROMPETROL RAFINARE S.A.

UNAUDITED INTERIM STANDALONE FINANCIAL STATEMENTS

Prepared in compliance with Order of the Minister of Public Finance no. 2844/2016 For approval of the accounting regulations in compliance with the International Financial Reporting Standards

30 JUNE 2021 ROMPETROL RAFINARE S.A. Unaudited Interim Standalone Financial Statements Prepared in compliance with the Order of the Minister of Public Finance no. 2844/2016 as at 30 June 2021

CONTENTS: PAGE

Interim Statement of the financial position 3

Interim Income Statement 4

Interim Statement of Other Comprehensive Income 5

Interim Statement of Cash Flows 6

Interim Statement of Changes in Equity 7

Notes to the Interim Financial Statements 8 - 69

ROMPETROL RAFINARE S.A. INTERIM STATEMENT OF THE FINANCIAL POSITION as at 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

Notes June 30, 2021 December 31, 2020

Intangible assets 3 27,403,404 26,873,710 Goodwill 4 152,720 152,720 Property, plant and equipment 5 3,454,307,319 3,623,946,290 Rights of use assets 6 57,157,021 58,002,943 Investments in subsidiaries 7 1,629,023,359 1,629,020,055 Total non current assets 5,168,043,823 5,337,995,718

Inventories, net 8 981,264,823 527,073,050 Receivables and prepayments, net 9 1,514,916,548 1,167,390,890 Derivative Financial Instruments 30 188,200 - Cash and cash equivalents 10 158,308,076 365,595,493 Total current assets 2,654,677,647 2,060,059,433

TOTAL ASSETS 7,822,721,470 7,398,055,151

Subscribed share capital 11 4,410,920,573 4,410,920,573 Share premium 11 232,637,107 232,637,107 Revaluation reserves, net of deferred tax impact 11 496,303,998 509,938,277 Other reserves 11 3,389,297,090 3,395,246,289 Accumulated losses (7,199,500,822) (6,567,312,044) Current year result (256,401,130) (645,823,057) Total equity 1,073,256,816 1,335,607,145

Long-term borrowings from banks 15 596,159,985 570,759,324 Provisions 17 297,034,901 297,034,901 Long-term lease debts 16 56,973,416 56,981,732 Deferred tax liability 23 9,417,626 9,417,626 Total non-current liabilities 959,585,928 934,193,583

Trade and other payables 12 5,389,018,774 4,774,877,899 Contract liabilities 13 82,388,516 91,363,247 Short-term lease debts 16 2,694,366 2,542,555 Derivatives 30 11,401,673 617,651 Short-term borrowings from related parties 14 - 48,949,030 Short-term borrowings from banks 14 304,375,397 209,904,041 Total current liabilities 5,789,878,726 5,128,254,423

TOTAL LIABILITIES AND EQUITY 7,822,721,470 7,398,055,151

YEDIL UTEKOV RAMONA GEORGIANA GALATEANU Chairman of the Board of Directors Financial Manager

FELIX CRUDU-TESLOVEANU Prepared by, Alexandru Cornel Anton General Manager Chief Accountant

Explanatory notes from 1 to 31 are part of these financial statements English translation is for information purposes only. Romanian language text is the official text for submission. 3 ROMPETROL RAFINARE S.A. INTERIM INCOME STATEMENT for the financial year ended 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

January - June January - June Notes 2021 2020

Net revenues from contracts with customers 18 6,016,523,533 3,882,494,802 Cost of sales 19 (5,884,129,865) (4,127,279,901)

Gross profit / (loss) 132,393,668 (244,785,099)

Selling, general and administrative expenses 20 (129,263,015) (197,125,528) Other operating expenses 21 (47,038,975) (161,787,932) Other operating income 21 8,806,087 166,669,520

Operating loss (35,102,235) (437,029,040)

Financial expenses 22 (77,032,127) (98,178,166) Financial revenues 22 5,564,138 9,110,068 Net foreign exchange gains / (losses) 22 (149,830,906) (66,016,980)

Loss before income tax (256,401,130) (592,114,118)

Deferred tax 23 - -

Net Loss (256,401,130) (592,114,118)

Earnings per share (bani/share) 26 (0.58) (1.34)

YEDIL UTEKOV RAMONA GEORGIANA GALATEANU Chairman of the Board of Directors Financial Manager

FELIX CRUDU-TESLOVEANU Prepared by, Alexandru Cornel Anton General Manager Chief Accountant

Explanatory notes from 1 to 31 are part of these financial statements English translation is for information purposes only. Romanian language text is the official text for submission. 4 ROMPETROL RAFINARE S.A. INTERIM STATEMENT OF OTHER COMPREHENSIVE INCOME for the financial year ended 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

January - June January - June 2021 2020

Net Loss (256,401,130) (592,114,118)

Other comprehensive income - -

Other comprehensive income to be reclassified to income statement in subsequent periods (net of tax): - -

Gains / (losses) from derivatives (5,949,198) 25,835,789 Total comprehensive income to be reclassified to income statement in subsequent periods (net of tax): (5,949,198) 25,835,789

Total other comprehensive result for the year, net of tax (5,949,198) 25,835,789

Total comprehensive result for the year, net of tax (262,350,328) (566,278,330)

YEDIL UTEKOV RAMONA GEORGIANA GALATEANU Chairman of the Board of Directors Financial Manager

FELIX CRUDU-TESLOVEANU Prepared by, Alexandru Cornel Anton General Manager Chief Accountant

Explanatory notes from 1 to 31 are part of these financial statements English translation is for information purposes only. Romanian language text is the official text for submission. 5 ROMPETROL RAFINARE S.A. INTERIM STATEMENT OF CASH FLOWS For the financial year ended 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

Notes June 30, 2021 June 30, 2020

Net result before income tax (256,401,130) (592,114,118) Adjustments for: Depreciation and amortisation 19, 20 194,297,738 170,663,763 Provisions for receivables and inventories (incl write-off) 21 12,313,877 (4,563,222) Expenses with penalties 2,899,194 42,535 Interest expenses 77,032,127 98,178,166 Inrerest income (5,564,138) (9,110,068) (Gain)/Loss on sale or disposal of assets (1,050) - Other non-monetary adjustments (65,353) 2,391,239 Unrealised foreign exchange (gain)/loss 22 140,058,850 10,523,785 Cash generated from / (used in) operations before working capital changes 164,570,115 (323,987,920)

Net cash provided by / (used in) operating activities (674,805,041) 662,947,134

Cash flows from financing activities Cash pooling movement 517,667,789 166,715,337 Short - term loans (paid to) / received from banks 86,186,668 (10,208,223) Long - term loans (paid to) / received from banks - (238,360,396) Short - term loans repaid to shareholders and related parties (34,452,042) (43,677,500) Lease repayments (2,340,582) (5,001,169) Interest and bank charges paid, net (76,069,702) (97,992,626)

Net cash used in financing activities 490,992,131 (228,524,576)

Increase / (Decrease) in cash and cash equivalents (207,287,417) 16,609,708

Cash and cash equivalents at the beginning of period 365,595,493 22,373,528

Cash and cash equivalents at the end of the period 158,308,076 38,983,236

YEDIL UTEKOV RAMONA GEORGIANA GALATEANU Chairman of the Board of Directors Financial Manager

FELIX CRUDU-TESLOVEANU Prepared by, Alexandru Cornel Anton General Manager Chief Accountant

Explanatory notes from 1 to 31 are part of these financial statements English translation is for information purposes only. Romanian language text is the official text for submission. 6 ROMPETROL RAFINARE S.A. INTERIM STATEMENT OF CHANGES IN EQUITY for the financial years ended 30 June 2021 and 30 June 2020 (All amounts expressed in Lei (“RON”), unless otherwise specified)

Deferred tax on the Share Share Acumulated Revaluation revaluation Other Total capital premium losses reserves reserve reserves equity

1st of January 2020 4,410,920,573 232,637,107 (6,595,240,857) 634,998,190 (101,599,711) 3,386,268,737 1,967,984,039

Net loss for S1 2020 - - (592,114,118) - - - (592,114,118) Revaluation reserves - - 14,105,722 (14,105,722) - - - Gains/losses related to derivative financial instruments - - - - - 25,835,789 25,835,789 Total other comprehensive income for S1 2020 - - - - - 25,835,789 25,835,789 Total comprehensive income for S1 2020 - - (592,114,118) - - 25,835,789 (566,278,330)

30st of June 2020 4,410,920,573 232,637,107 (7,173,249,252) 620,892,468 (101,599,711) 3,412,104,525 1,401,705,709

Deferred tax on the Share Share Acumulated Revaluation revaluation Other Total capital premium losses reserves reserve reserves equity 1st of January 2021 4,410,920,573 232,637,107 (7,213,135,101) 607,069,377 (97,131,100) 3,395,246,288 1,335,607,144

Net loss for S1 2021 - - (256,401,130) - - - (256,401,130) Gains/losses related to derivative financial instruments - - - - - (5,949,198) (5,949,198) Total other comprehensive income for S1 2021 - - - - - (5,949,198) (5,949,198) Total comprehensive income for S1 2021 - - (256,401,130) - - (5,949,198) (262,350,328) Revaluation reserves transferred to retained earnings - - 13,634,279 (13,634,279) - - -

30st of June 2021 4,410,920,573 232,637,107 (7,455,901,952) 593,435,098 (97,131,100) 3,389,297,090 1,073,256,816

YEDIL UTEKOV RAMONA GEORGIANA GALATEANU Chairman of the Board of Directors Financial Manager

FELIX CRUDU-TESLOVEANU Prepared by, Alexandru Cornel Anton General Manager Chief Accountant

Explanatory notes from 1 to 31 are part of these financial statements English translation is for information purposes only. Romanian language text is the official text for submission. 7 ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

1. GENERAL

Rompetrol Rafinare S.A. (hereinafter referred to as “the Company” or “Rompetrol Rafinare”) is a company incorporated under Romanian laws. The Company operates two refineries Petromidia and Vega and also a petrochemical plant. Petromidia Refinery is the one with the highest capacity (of 5 million tons/annum, nameplate capacity) and the only Romanian refinery at the Romanian Black Sea shore, which processes exclusively imported crude oil and produces E.U. standard motor fuels, other petroleum products and certain petrochemicals. Petromidia refinery was designed and built during 1975 and 1977 and was further upgraded in the early ‘90s and between 2005 - 2012. Vega refinery was built in 1905 and upgraded in the following decades.

Rompetrol Rafinare S.A. production facilities are located in Romania. The number of employees of the Company as at 30 June 2021 is 1,110, respectively 1,119 as at 31 December 2020.

The registered address of Rompetrol Rafinare S.A. is 215 Navodari Blvd., Constanta, Romania.

Rompetrol Rafinare S.A. is a joint stock company listed in the Bucharest Stock Exchange since 2004.

The Company is a part of the KMG International N.V Group. The consolidated financial statements are prepared at the level of the parent company KMG International N.V., with the head office located at World Trade Center, Strawinskylaan 807, Tower A, 8th Floor, 1077 XX, Amsterdam, The Netherlands. These annual financial statements are public.

The ultimate parent of the KMG International N.V. is the company “National Welfare Fund Samruk Kazyna” JSC, an entity with its headquarters in Kazakhstan.

The company also prepares consolidated financial statements that have a public character and are available on the website of the company, https://rompetrol-rafinare.kmginternational.com/, at the section Relation with Investors.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Basis of preparation and statement of compliance

Effective as of 31 December 2012, the standalone financial statements of the Company are prepared in accordance with the Order of the Minister of Public Finance no. 1286/2012 subsequent amended by Order of the Minister of Public Finance no. 2844/2016 for approval of the Accounting regulations in compliance with the International Financial Reporting Standards applicable to the companies whose real shares are accepted for transaction on a regulated market. These stipulations are compliant with the requirements of the International Financial Reporting Standards as approved by the European Union, except the regulations of IAS 21, the Effects of the exchange rate variation with regards to the functional currency.

For the purpose of preparing these Interim Financial Statements, in accordance with the requirements of the Romanian law, the Company’s functional currency is the Romanian leu (RON).

The interim standalone financial statements were prepared based on the historical cost, except for financial instruments and buildings category which are presented at the fair value in the account of profit and loss, and in the statement of other comprehensive income, respectively.

The interim standalone financial statements are prepared in RON and all the values are rounded up to the closest amount in lei, if not otherwise indicated.

8 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) b) The going concern

The financial statements of the Company are prepared on a going concern basis. As at 30 June 2021 and 31 December 2020, the Company net assets amount to RON 1,073 million and RON 1,336 million, respectively. For the periods ending 30 June 2021 and 31 December 2020, the Company reported losses of RON 256.4 million and RON 645.8 million, respectively.

The accumulated losses recorded until present are due to the fact that the Company was impacted by the refining activity specificity, characterized by a significant volatility and low refinery margins in the past years, but, considering the massive investment trend of the last periods combined with an improvement in market conditions the Company is aiming for future positive financial results which will decrease the cumulated loss recorded so far.

The strategy for the following years is a mix of projects for optimization of production and energy costs, optimum utilization of refining capacity and improvement of production yields. In order to improve the financial performance, the following measures have been taken: • Reducing the refinery costs for the purpose of rendering the processes efficient and increasing profitability; • Improvement of the product mix in order to increase the share of higher margin products.

Management estimates that the evolutions mentioned above, will lead to an improvement of the Company’s capacity to sustain its ongoing operations.

The Company’s net asset amounting to RON 1.073 million as at 30 June 2021 (2020: RON 1.336 million) continues to be at a level lower than a half of the value of share capital (amounting to RON 4,410 as at 30 June 2021) and the Company’s management takes the necessary steps to regulate this situation within the timeframe stipulated by the law, based on the stipulations of art.153.24 of company Law no.31/1990, as subsequently amended and in accordance with the statutory decisions adopted. In this regard, the Company’s management prepared a plan with several proposed options in order to remediate the situation and this is submitted to the shareholders' decision. The Extraordinary General Meeting of Shareholders („EGMS”) of Rompetrol Rafinare is convoked on August 6th/9th, 2021.

On 19 March 2021, the Company received a letter of support from its main shareholder, KMG International NV, valid for the next 12 months from the date of approval of the financial statements.. Management believes that the support from KMG International NV and banks is sufficient to enable the Company to continue its operations and settle its obligations in the ordinary course of business without substantial disposal of assets, externally forced, reversing of its operations or similar actions.

The Company is planning to change the Company's accounting policy for valuation of the Company’s tangible non-current assets from the historic cost model to the revaluation model and for investments in subsidiaries from historic cost to fair value, so that the information included and presented in the annual financial statements to be as much relevant and useful to all users of the Company’s financial statements starting with the financial year ended 31 December 2021.

Considering the Company’s plans for 2021, as well as other aspects mentioned above, it is considered that the preparation of financial statements is made under going concern basis.

9 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

c) Changes in accounting policies

New and amended standards and interpretations

The accounting policies adopted are consistent with those of the previous financial year except for the following amendments to IFRS effective as of 1 January 2021:

• Interest Rate Benchmark Reform – Phase 2 – IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Amendments) In August 2020, the IASB published Interest Rate Benchmark Reform – Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, completing its work in response to IBOR reform. The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). In particular, the amendments provide for a practical expedient when accounting for changes in the basis for determining the contractual cash flows of financial assets and liabilities, to require the effective interest rate to be adjusted, equivalent to a movement in a market rate of interest. Also, the amendments introduce reliefs from discontinuing hedge relationships including a temporary relief from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component. Furthermore, the amendments to IFRS 4 are designed to allow insurers who are still applying IAS 39 to obtain the same reliefs as those provided by the amendments made to IFRS 9. There are also amendments to IFRS 7 Financial Instruments: Disclosures to enable users of financial statements to understand the effect of interest rate benchmark reform on an entity’s financial instruments and risk management strategy. The amendments are effective for annual periods beginning on or after 1 January 2021 with earlier application permitted. While application is retrospective, an entity is not required to restate prior periods. Management is in process of assessing the impact at Company’s level from application of this amendments.

d) Standards issued but not yet effective and are not early adopted

The Company has not early adopted the following standards/interpretations:

• IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non- current (Amendments) The amendments are effective for annual reporting periods beginning on or after January 1, 2022 with earlier application permitted. However, in response to the covid-19 pandemic, the Board has deferred the effective date by one year, i.e. 1 January 2023, to provide companies with more time to implement any classification changes resulting from the amendments. The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current or non-current. The amendments affect the presentation of liabilities in the statement of financial position and do not change existing requirements around measurement or timing of recognition of any asset, liability, income or expenses, nor the information that entities disclose about those items. Also, the amendments clarify the classification requirements for debt which may be settled by the company issuing own equity instruments. These Amendments have not yet been endorsed by the EU. Management is in process of assessing the impact at Company’s level from application of this amendments.

• IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets as well as Annual Improvements 2018-2020 (Amendments) The amendments are effective for annual periods beginning on or after 1 January 2022 with earlier application permitted. The IASB has issued narrow-scope amendments to the IFRS Standards as follows: ➢ IFRS 3 Business Combinations (Amendments) update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.

10 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

➢ IAS 16 Property, Plant and Equipment (Amendments) prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss. ➢ IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendments) specify which costs a company includes in determining the cost of fulfilling a contract for the purpose of assessing whether a contract is onerous. ➢ Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases The amendments have not yet been endorsed by the EU. Management has assessed there is no material impact at Company’s level from application of this amendments.

• IFRS 16 Leases-Cοvid 19 Related Rent Concessions (Amendment) The amendment applies, retrospectively, to annual reporting periods beginning on or after 1 June 2020. Earlier application is permitted, including in financial statements not yet authorized for issue at 28 May 2020. IASB amended the standard to provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the covid-19 pandemic. The amendment provides a practical expedient for the lessee to account for any change in lease payments resulting from the covid-19 related rent concession the same way it would account for the change under IFRS 16, if the change was not a lease modification, only if all of the following conditions are met: ➢ The change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change. ➢ Any reduction in lease payments affects only payments originally due on or before 30 June 2021. ➢ There is no substantive change to other terms and conditions of the lease. Management has assessed there is no material impact at Company’s level from application of this amendments.

e) Significant professional judgements, estimates and assumptions

The preparation of the financial statements requires that the management should issue professional judgments, estimates and assumptions that affect the reported amounts of revenues and expenses, of assets and liabilities and the disclosure of contingent liabilities at the reporting date. The estimates and associated assumptions are based on the previous experience and on other factors considered relevant. However, uncertainty about these forecasts and estimates could result in adjusting the accounting value of the assets and liabilities in the future periods.

The estimates and assumptions that are the basis of the accounting judgements are constantly reviewed. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects that period or in the period of the revision and the future periods if the revision affects both current and the future periods.

The matters presented below are considered to be the most important in understanding the professional judgments that affect the preparation of these financial statements and the uncertainties that could affect the result of the operations, the financial position and the cash flows.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that can lead to material adjustments to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

11 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

- Impairment of non-financial assets

The Company assesses annulay at December 31 whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the carrying amounts for major property, plant and equipment are tested for impairment.

If assets are determined to be impaired, the carrying amounts of those assets are written down to their recoverable amount, which is higher of fair value less costs to sell, and value in use determined as the amount of estimated discounted future cash flows. Impairments, except those related to goodwill, are reversed as applicable to the extent that the events or circumstances that triggered the original impairment have changed.

The Company bases its impairment calculation based on detailed budgets and forecasts, which are prepared separately for each of the Company’s CGUs. Budgets and forecasts used for impairment calculation generally cover the period of five years. Also, Budgets and forecasts are based on management estimates of future commodity prices, market supply and demand and product margins.

Impairment assessments require the use of estimates and assumptions such as long-term oil prices (considering current and historical prices, price trends and related factors), discount rates, operating costs and future capital expenditures. These estimates and assumptions are subject to risk and uncertainty. Therefore, there is a possibility that changes in circumstances will impact these projections, which may impact the recoverable amount of the CGUs.

Estimates of future cash flows are based on management estimates of future commodity prices, market supply and demand and product margins. Other factors that can lead to changes in estimates include restructuring plans and legislations changes. The recoverable amount is sensitive to the discount rate used for the discounted cash flow model, as well as the expected future cash inflows and the growth rate used for extrapolation purposes.

The key assumptions used to determine the recoverable amount for the different CGUs, including a sensitivity analysis, are disclosed and further explained in Note 5.

- Provision for environmental liability

The Company is involved in refining and petrochemicals. Environmental damage caused by such activities may require the Company to incur restoration costs to comply with the regulations in force. Analysis and estimates are performed by the Company together with its technical and legal advisers, in order to determine the probability, timing and amount involved with probable required outflow of resources. Estimated restoration costs, for which cash outflow may be probable, are recognized as a provision in the Company’s financial statements. When the final determination of such obligations differs from the recognized provisions, difference is registered in the Company’s Income statement.

Additional details on the provisions related to the environment-related obligations are set out in Note 17.

- Deferred tax assets

Deferred tax assets resulting from the unused tax losses are recognized only to the extent that it is probable that taxable profit will be available, against which the losses can be utilized and for environmental provision. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax to be utilized. Unrecognized deferred tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that future taxable profit will be available to allow the deferred tax asset to be recovered.

12 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Further details on deferred tax assets and for those losses carried forward for which deferred tax assets has and has not been recognized are provided in Note 23.

- Carrying value of trade and other receivables

The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Company assesses the requirement for an allowance for impairment in trade and other receivables when contractual payments are 360 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company.

- Provision for litigations

The Company analyses its legal exposure regularly in order to determine whether provisions are required. In determining the amount of the provision, assumptions and estimates are made in relation to the probability of losing the litigation, the expected claim to be paid and the expected timing of the payments. Changes to these estimates could have a significant impact on the amount of the provision.

Further details on the provisions relating to litigations are provided in Notes 17, 21, 28.

- Hybrid loan interest payable

The Company has unsecured hybrid loans subscribed by its parent companyfor which interest is computed based on the company’s annual EBIT (operational profit) and becomes payable if the below conditions are met cumulatively: • the company records net profit after tax in the year • the company will be able to distribute dividends as per the Romanian law requirements

At maturity the loan can be repaid in cash or fully or partially converted into shares at the option of the issuer. The estimated future payments of interest are classified as liability, as the Company cannot avoid making these payments if conditions are met, while the remaining balance of the loan is classified in equity and not subsequently remeasured. On annual basis, a reassessment of the future estimated interest payments is performed with direct impact in the current year result. Further details on the hybrid loan interest payable are provided in Notes 11.4. f) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

a. Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under IFRS 15. Refer to the accounting policies in section (r) Revenue from contracts with customers.

13 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.

The Company’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in three categories: • Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments); • Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments); • Financial assets at fair value through profit or loss.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of profit or loss.

This category includes derivative instruments and listed equity investments which the Company had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are also recognised as other income in the statement of profit or loss when the right of payment has been established.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Company’s statement of financial position) when: • The rights to receive cash flows from the asset have expired Or • The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass- through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset

14 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognizes an associated liability.

The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.

Impairment of financial assets

The Company recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

The Company considers a financial asset in default when contractual payments are 360 days past due. However, in certain cases, the Company may also consider a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

b. Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and derivative financial instruments.

15 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below: • Financial liabilities at fair value through profit or loss • Loans and Credits

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

c. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

d. Impairment of financial assets

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognised the transferred asset to the extent of the Company’s continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

The Company assesses, at each reporting date, whether there is objective evidence that a financial asset or a Company of financial assets is impaired. An impairment exists if one or more events that has occurred since the initial recognition of the asset (an incurred ‘loss event’), has an impact on the estimated future cash flows of the financial asset or the Company of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a Company of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults. g) Property plant and equipment

Property, plant and equipment of the Company are stated at cost less cumulative depreciation, except for buildings that are periodically revalued and measured at fair value.

The initial cost of property, plant and equipment comprises its purchase price, including custom duties and non-refundable purchase taxes and any costs directly attributable to bringing the asset to the location and the condition necessary for operation. Expenses incurred after commissioning of the asset, such as repairs and maintenance costs are charged to income in the period in which the costs occurred. In situations where it can be demonstrated that expenses have increased the future economic benefits obtained from the use of intangible assets besides the standard evaluation of its performance, the expenditure is capitalized as additional costs of the tangible assets.

16 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Buildings category are measured at fair value less accumulated depreciation and impairment losses recognized after the date of revaluation. Valuations need to be performed with sufficient frequency to ensure that the carrying amount of a revalued asset does not differ materially from its fair value.

A revaluation surplus is recorded in OCI and credited to the asset revaluation surplus in equity. However, to the extent that it reverses a revaluation deficit of the same asset previously recognized in profit or loss, the increase is recognized in profit and loss. A revaluation deficit is recognized in the statement of profit or loss, except to the extent that it offsets an existing surplus on the same asset recognized in the asset revaluation surplus.

An annual transfer from the asset revaluation surplus to retained earnings is made for the difference between depreciation based on the revalued carrying amount of the asset and depreciation based on the asset’s original cost. Additionally, accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal, any revaluation surplus relating to the particular asset being sold is transferred to retained earnings, unless a transfer hasn’t been already made during utilization period of the revaluated asset.

Assets in progress represent installations and buildings in construction and are presented at cost, less any impairment losses. This includes the cost of construction and other direct costs. Depreciation of these assets and the others is registered starting with the date when they are ready to be used for the activity they are intended.

Depreciation of property, plant and equipment less land and immobilization in progress is calculated using the linear method throughout their estimated lifetime:

Years

Buildings and other constructions 10 - 100 Tanks 20 - 30 Tools and other technological equipment 3 - 20 Vehicles 5 Furniture and office equipment 3 - 10 Computers 3

Following the change in accounting policy regarding recognition of buildings category from cost to revaluation method, also the economic remaining life utilization of the buildings were revalued at 31 December 2017. The depreciation of buildings category based on the revaluated remaining life utilization applies starting 1 January 2018. Before this date (i.e. 1 January 2018) the buildings category was stated at cost. The change from cost to revaluation provide a more transparent and up to date picture of the value of the Company’s assets.

When assets are sold or derecognized, their cumulative costs and depreciation are eliminated and any income or loss resulting from their disposal is included in the income statement.

Assets purchased under finance leases are recorded in the statement of financial position and depreciated over their expected useful lives on the same basis as owned assets, or where shorter the term of the relevant lease. h) Intangible assets

Intangible assets are measured initially at cost. Intangible assets are recognized if it is probable that the future economic benefits should be attributable to the asset and flow to the enterprise and if the cost of the asset can be measured reliably. After initial recognition, intangible assets are measured at cost less accumulated amortization and any accumulated impairment losses. Intangible assets are amortized on a straight-line basis over the best estimate of their useful lives:

17 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Intangible assets consist of software and licenses and are amortized on a straight-line basis over 3 - 5 years, respectively 24 - 25 years for the licenses for transmission of technological data from the plant to the Refinery command center.

Development costs for specific projects which are reasonably anticipated to be recovered through commercial activity as well as expenditure on acquired computer software licenses are capitalized and amortized using the straight-line method over their useful lives, generally 3 years. The carrying amount of each intangible asset is reviewed annually and adjusted for impairment where it is considered necessary. External and internal costs specifically associated with the maintenance of already existing computer software programs are expensed as incurred. i) Investments in subsidiaries

Financial assets represent long-term strategic investments and are stated at historical cost, less any adjustments impairment caused by a diminished value. The main indicators considered for the identification of impairment are current and anticipated results of the company in question, in the context of the industry in which it operates.

Further details on financial assets are provided in Note 7. j) Impairment of non-financial assets, including investment in subsidiaries

At December 31, the Company reviews the carrying amounts of its property, plant and equipment, intangible assets and right of use assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the respective asset belongs.

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of time value of money and risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the assets (or cash-generating unit) is reduced to its recoverable amount. Impairment losses are recognized as an expense immediately, unless the relevant asset is stated at revalued amount in which case the impairment loss is treated as a revaluation decrease.

When an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognized as income immediately, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. k) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense related to any provision is presented in the income statement net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

18 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Provisions are not recognized for future operating losses. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability.

Environmental obligations

Environmental costs relating to current or future income are recorded in the income statement or capitalized as appropriate. Costs relating to an existing condition caused by past operations and which do not contribute to current or future earnings are recorded in the income statement.

The company has an environmental policy in accordance with existing legislation and which respects any obligations resulting from environmental or operating permits. In order to ensure compliance with all the rules and provisions, the company has established a monitoring system in accordance with the requirements of the relevant authorities. In addition, investment plans are adjusted to reflect any future known environmental requirements. The above mentioned costs are estimated on the basis of relevant environmental studies.

Debts on environmental remediation costs are recognised when estimates of these debts are probable and associated costs can be reasonably estimated. In general, the chargeability of these provisions coincides with the commitment undertaken by a formal action plan, or, if it occurs earlier, with the disinvestment or closure of inactive locations. l) Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Company applies a single recognition and measurement approach for all leases, except for short- term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. i. Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of- use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in section j) Impairment of non-financial assets. ii. Lease liabilities

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate.

19 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Variable lease payments that do not depend on an index or a rate are recognized as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

A lessee shall determine the lease term as a non-cancellable period of a lease, together with both: ➢ Periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and ➢ Period covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option

The Company’s lease liabilities are included in Lease (see Note 16). iii. Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases. Lease payments on short-term leases and leases of low value assets are recognized as expense on a straight- line basis over the lease term.

m) Inventories

Inventories, including work-in-process are stated at the lower of cost and net realizable value. Net realizable value is the selling price in the ordinary course of business, less the costs of completion, marketing and distribution.

Cost comprises the acquisition cost and other costs that have been incurred in bringing the inventories to their present location and condition and is determined by weighted average method for all the inventories.

n) Trade receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under IFRS 15.

An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due for groupings of various customer segments with similar loss patterns (i.e., by geographical region, product type, customer type and rating, and coverage by letters of credit or other forms of credit insurance). The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions.

20 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) o) Cash and cash equivalents

Cash includes cash on hand, cash with banks and checks in course of being cashed. Cash equivalents are short-term, highly liquid deposits with a maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of changes in value.

p) Revenue from contracts with customers

Revenue from contracts with customers is recognized when control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The normal credit term is 30 to 90 days upon delivery.

In recognising revenue, the Company applies the five-step model based on the requirements of IFRS 15:

a) identifying the contract with the customer; b) identifying performance obligations under the contract; c) determining the transaction price; d) allocating the transaction price to performance obligations; e) recognising revenue at (or during) performance of obligation.

(i) Variable consideration

If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Some contracts for the sale of petroleum products provide customers volume rebates. The volume rebates give rise to variable consideration.

(ii) Volume rebates

The Company provides retrospective volume rebates to certain customers once the quantity of products purchased during the period exceeds a threshold specified in the contract. Rebates are offset against amounts payable by the customer. To estimate the variable consideration for the expected future rebates, the Company applies the most likely amount method for contracts with a single-volume threshold and the expected value method for contracts with more than one volume threshold. The selected method that best predicts the amount of variable consideration is primarily driven by the number of volume thresholds contained in the contract. The Company then applies the requirements on constraining estimates of variable consideration and recognizes a refund liability for the expected future rebates.

(iii) Significant financing component

Generally, the Company receives short-term advances from its customers. Using the practical expedient in IFRS 15, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be less than one year.

21 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Contract balances

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer when that right is conditioned on something other than the passage of time. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

Trade receivables

A receivable represents the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section i) Financial instruments – initial recognition and subsequent measurement and section n) Trade receivables.

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

q) Interest bearing loans

All loans are initially recognized at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest bearing loans are subsequently measured at amortized cost, using the effective interest method.

Gains and losses are recognized in the income statement when the liabilities are derecognized as well through the amortization process.

r) Borrowings costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All the other costs are expensed in the period they occur.

Borrowing costs consists of interest and other cost that an entity incurs in connection with the borrowing of funds.

s) Retirement benefit costs

Payments made to state - managed retirement plans are dealt with as defined contribution plans where the Company pays fixed contributions into the state-managed fund and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior period. The contributions are charged as an expense in the same period when the employee service was rendered.

22 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Under collective labor agreements, the employees are entitled to specified retirement benefits, payable on retirement, if they are employed with the Company at the date of their retirement. These amounts are estimated as of the reporting date, based on the following information’s: applicable benefits provided in the agreement; the number of employees in the Company and the actuarial estimates of the future loans. The defined benefit liability as of reporting date comprises the present value of the defined benefit obligation with the related service cost charged to the income statement. All actuarial gains and losses are fully recognised in other comprehensive income items in the period in which they occur for all defined benefit plans. The related service cost and interest expense are charged to period profit and loss, while all the actuarial gains and losses are fully recognized in other comprehensive income in the period in which they occur.

The Company has no other liabilities with respect to future pensions, health plans and other costs for its employees.

t) Taxes

- Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, by the reporting date, in the countries where the Company operates and generates taxable income.

Current income tax relating to items recognized directly in equity is recognized in equity and not in the income statement. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

- Deferred tax

Deferred tax is provided using the liability method on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences, except: • Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; • In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

23 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized except: • Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss • In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted until the end of the reporting period.

Deferred tax relating to items recognized outside profit or loss account is recognized outside profit or loss account. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

- Sales (revenues) related tax

Revenues, expenses and assets are recognized net of the amount of sales tax except: • Where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense item as applicable; • Receivables and payables that are stated with the amount of sales tax included.

The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

u) Dividends

Dividends are recorded in the year in which they are approved by the shareholders.

24 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) v) Foreign Currency Transactions

For the purpose of preparing these Financial Statements, in accordance with the requirements of the Romanian law, the Company’s functional currency is the Romanian leu (RON).

The exchange rates RON/USD and RON/EUR are the following:

Currency 30 June 2021 31 December 2020

RON/USD 4.1425 3.9660 RON/EUR 4.9267 4.8694

The Company translates its transactions and balances in foreign currency, in the functional currency by applying the exchange rate between the functional currency and the foreign currency at the date of transaction.

Exchange rate differences arising on the settlement of monetary assets and liabilities or on reporting them at rates different from those at which they were initially recorded during the period or reported in the previous financial statements are recognized in the income statement in the period they arise.

w) Derivative financial instruments

The Company enters into contracts to purchase and sell crude oil and oil products at future delivery dates. These contracts expose the Company primarily to commodity risks of changes in fair value of crude oil and related oil products. The Company also uses financial instruments (primarily Options, Swaps and forwards) to hedge its risks associated with fair value fluctuation relating to certain firm commitments and forecasted transactions.

The use of financial derivatives is governed by the Company’s policies approved by board of directors, which provide written principles on the use of financial derivatives.

Derivative financial instruments are initially measured at fair value on the contract date and are remeasured to fair value at subsequent reporting dates.

Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

For the purpose of hedge accounting, hedges are classified as: • Fair value hedges when hedging the exposure to changes in the fair value of a recognised asset or liability or an unrecognized firm commitment • Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment

At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge.

25 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Beginning 1 January 2018, the documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Company will assess whether the hedging relationship meets the hedge effectiveness requirements (including the analysis of sources of hedge ineffectiveness and how the hedge ratio is determined). A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements: • There is ‘an economic relationship’ between the hedged item and the hedging instrument. • The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship. • The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Company actually hedges and the quantity of the hedging instrument that the Company actually uses to hedge that quantity of hedged item.

Hedges that meet all the qualifying criteria for hedge accounting are accounted for, as described below:

Fair value hedge

The Company buys crude oil from the market, refines it and later sells the finished products (e.g.: gasoline, diesel, jet fuel etc.). The company hedges priced inventories (both raw materials and finished products) above BOS (basis operating stock) using futures instruments for a period that approximately matches the operating cycle.

Hedge accounting is applied for the futures instruments. The change in the fair value of a hedging instrument is recognised in the statement of profit or loss as Cost of Sales. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the inventory and is also recognised in the statement of profit or loss as Cost of Sales. If the hedged item is derecognised, the unamortized fair value is recognised immediately in profit or loss (see note 19).

Cash Flow Hedge

The Company buys crude oil from the market, refines it and later sells the finished products (e.g.: gasoline, diesel, jet fuel etc.). Throughout a given period, the volatility associated with the oil market, both in crudes and in finished products, is transmitted to the Company’s refinery margin (difference between the purchase price of crude oil and the selling price of finished products). To reduce this volatility, the Company hedges the margin with a swap on a hedged basket as relevant for the period.

Hedge accounting is applied for the refinery margin Swap instruments. The effective portion of the gain or loss on the hedging instrument is recognised in Other Comprehensive Income in the cash flow hedge reserve, while any ineffective portion is recognised immediately in the statement of profit or loss. Amounts recognised as OCI are transferred to profit or loss when the hedged transaction affects profit or loss (see Note 19).

Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognized in period profit or loss as they arise.

x) Emission Rights

CO2 emission rights quota are allocated to the Company’s refining and petrochemicals operations. For the period 2021-2025 the allowances have been validated by European Union and are posted on the Romanian Environmental Ministry website. The Company accounts for the liability resulting from generating of these emissions using the net liability method. The liability is recognized only at a point where the actual emissions exceed the quota allocated to the respective company. Income is recognized only when excess certificates are sold on the market.

26 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) y) Fair value measurement

The Company measures financial instruments such as derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability Or • In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities • Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable • Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re- assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above.

z) Current versus non-current classification

The Company presents assets and liabilities in the statement of financial position based on current/non- current classification. An asset is current when it is: • Expected to be realized or intended to be sold or consumed in the normal operating cycle • Held primarily for the purpose of trading • Expected to be realized within twelve months after the reporting period Or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

27 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

All other assets are classified as non-current.

A liability is current when: • It is expected to be settled in the normal operating cycle • It is held primarily for the purpose of trading • It is due to be settled within twelve months after the reporting period Or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

aa) Contingencies

Contingent liabilities are not recognized in the financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.

A contingent asset is not recognized in the financial statements but disclosed when an inflow of economic benefits is probable.

28 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

3. INTANGIBLE ASSETS

Other Total Software / Intangibles Licenses in progress

Cost Opening balance as of January 1, 2020 49,688,870 837,856 14,906,754 65,433,480

Additions 1,285,736 - 7,668,687 8,954,422 Transfers* 9,668,988 4,261,351 (12,914,034) 1,016,304

Closing balance as of December 31, 2020 60,643,593 5,099,207 9,661,407 75,404,206

Additions - - 3,890,886 3,890,886 Transfers, reclassifications and adjustments* 5,010,054 5,109 (5,017,855) (2,693)

Closing balance as of June 30, 2021 65,653,646 5,104,316 8,534,436 79,292,398

Accumulated amortization Opening balance as of January 1, 2020 (42,432,013) (287,668) - (42,719,681)

Charge for the year (4,892,037) (918,779) - (5,810,816)

Closing balance as of December 31, 2020 (47,324,051) (1,206,446) - (48,530,497)

Charge for the year (2,863,625) (494,874) - (3,358,499)

Closing balance as of June 30, 2021 (50,187,676) (1,701,319) - (51,888,994)

Net book value As of December 31, 2020 13,319,543 3,892,760 9,661,407 26,873,710 As of June 30, 2021 15,465,971 3,402,997 8,534,436 27,403,404

*) Includes transfers from assets in progress, transfers in/from tangible assets, reclassifications to other categories and other adjustments.

Major part of „Other” intangible assets refer to development expenses.

4. GOODWILL

The goodwill amounting to RON 152,720 represents fractions of the goodwill of the companies Oilfield Exploration Business Solutions SA (former Rompetrol S.A)., Rompetrol Downstream S.R.L. and Rompetrol Well Services S.A., following purchase of shares from these companies in Rom Oil S.A.

29 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

5. PROPERTY, PLANT AND EQUIPMENT Plant and Construction in Land Buildings equipment Furniture and others progress Total

Cost or valuation As of January 1, 2020 192,480,007 1,762,169,291 3,731,408,099 17,048,063 324,239,464 6,027,344,924 Acquisitions - - 1,534,479 120,752 470,955,562 472,610,794 Transfers from CIP - 100,231,607 355,910,326 2,185,864 (459,344,101) (1,016,304) Disposals - - (48,927,472) - - (48,927,472) Transfers and reclassifications* - - 4,433 - - 4,433 As of December 31, 2020 192,480,007 1,862,400,897 4,039,929,864 19,354,680 335,850,926 6,450,016,375 Acquisitions - - 405,062 - 19,206,266 19,611,328 Transfers from CIP - 72,255,407 207,113,200 31,095 (279,426,972) (27,270) Transfers and reclassifications* - - 470 - - 470 As of June 30, 2021 192,480,007 1,934,656,304 4,247,448,597 19,385,775 75,630,221 6,469,600,904

Accumulated depreciation & Impairment As of January 1, 2020 (29,214,330) (209,545,798) (2,259,606,879) (8,954,926) (3,171,485) (2,510,493,418) Charge for the year (1,656,751) (102,471,417) (259,279,306) (1,092,233) - (364,499,706) Accumulated depreciation of disposals - - 48,927,472 - - 48,927,472 Transfers and reclassifications* - - (4,433) - - (4,433) As of December 31, 2020 (30,871,081) (312,017,215) (2,469,963,145) (10,047,159) (3,171,485) (2,826,070,085) Charge for the year (828,376) (59,628,473) (128,269,790) (496,392) - (189,223,031) Transfers and reclassifications* - - (470) - - (470) As of June 30, 2021 (31,699,457) (371,645,688) (2,598,233,404) (10,543,552) (3,171,485) (3,015,293,586) Net book value as of December 31, 2020 161,608,926 1,550,383,682 1,569,966,719 9,307,521 332,679,441 3,623,946,290 Net book value as of June 30, 2021 160,780,550 1,563,010,616 1,649,215,192 8,842,223 72,458,736 3,454,307,319

*) Includes transfers from tangible assets in progress, transfers in/from intangible assets, reclassifications to other categories and other adjustments.

- Impairment

No additional depreciation was recorded in first 6 months of year 2021 and 2020.

30 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

5. PROPERTY, PLANT AND EQUIPMENT (continued)

- Construction in progress

In first 6 months of the year 2021, the significant contribution to the total acquisitions for construction in progress is the replace heater in VD unit, Vega Platform (about RON 12.4 million). and the ISCIR projects within the two refineries (about RON 4.5 million).

In 2020, the significant contribution to the total acquisitions for construction in progress is the ISCIR projects within the two refineries (about RON 105.3 million), Refinery and Petrochemicals General Turnaround (overhaul project in amount of approximately RON 194.3 million) the modernization projects of tanks (approximately RON 19.1 million), the projects of replacement catalysts (approximately RON 52.3 million), project Fluid Catalytic Cracking (FCC) Unit Rehabilitation (about RON 23.9 million), replace the old 6KV switches and the releys SRA2-4 project (about RON 6.9 million), 100C1 Atmospheric distillation column project (about RON 6.7 million) Replacement of reactor 130R1R2R3 project (about RON 5.6 million), improve cocker operation, modernization IPPA system and CF ramp, detailed design engineering for firefighting system and other small project totaling RON 56.7 million.

At the end of 2020, the main projects remaining in construction in progress refers to the following ISCIR projects within the two refineries (about RON 122.5 million) the modernization projects of tanks (approximately RON 20.6 million), replace the old 6KV switches and the releys SRA2-4 project (about RON 6.9 million), 100C1 Atmospheric distillation column project (about RON 13.8 million) Replacement of reactor 130R1R2R3 project (about RON 15 million), APC (i.e. Advance Process Control) in all refinery unit (amounting to RON 12.6 million), improve cocker operation, modernization IPPA system and CF ramp, detailed design engineering for firefighting system, new pipelines, maximize usage unit condensate, replacement for electrical in coke unit projects totaling RON 38.1 million, spare parts capex in amount of RON 17.8 million and other refinery ongoing project totaling RON 85.4 million.

- Disposal

No asset disposals were recorded in the first semester of the year 2021.

In 2020, the amount of RON 48.9 million related to the disposed assets it referees to the replacement of the used catalysts in Naphta Hydrotreating, Vaccum Distillate Hydrofining ,122 DHT (Disel HydroTreater), Kerosene HydroTreater, MTBE (Methyl Tertiary Butyl Ether), New Sulphur Recovery, New Hydrogen Plant and Mild Hydrocracker units.

31 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

5. PROPERTY, PLANT AND EQUIPMENT (continued)

- Capitalization of borrowing costs

The Company finances its activities including through loans and the cost of debt for the acquisition of assets is capitalized in the cost of the asset, when specific loans have been obtained (investment). In the first semester of the year 2021 and 2020 the interest was not capitalized.

- Revaluation of buildings category

Starting 31 December 2017, the Company changed its accounting policies regarding the recognition and measurement of its non-current assets, for buildings category, from cost model to the revaluation model.

The change from cost to revaluation will provide a more transparent and up-to-date picture of the value of the Company's assets. Fair value of the buildings category was determined using the depreciated replacement cost method. The valuations have been performed by a specialized valuer.

Reconciliation of carrying amount

Buildings million RON Carrying amount as at 31 December 2017 1,625 Depreciation for the year (97) Additions / Disposals / Transfers and reclassifications 80 Carrying amount and fair value as at 31 December 2018 1,608 Depreciation for the year (112) Additions / Disposals / Transfers and reclassifications 57 Carrying amount and fair value as at 31 December 2019 1,553 Depreciation for the year (103) Additions / Disposals / Transfers and reclassifications 100 Carrying amount and fair value as at 31 December 2020 1,550

*The Company changed the accounting policy with respect to the measurement of buildings category as at 31 December 2017 on a prospective basis. Therefore, the fair value of the of buildings category was not measured at 31 December 2016.

If the buildings category was measured using the cost model, the carrying amounts would be, as follows:

2020 2019 million RON million RON

Cost 2,148 2,048 Accumulated depreciation and impairment (1,187) (1,112) Net carrying amount 961 936

- Fixed assets pledged

The company pledged assets with a net carrying amount of RON 1,042,178,789 (2020: RON 1,011,352,595), as follows: • guarantees in favor of banks: RON 830,133,002 (2020: RON 806,134,270); • guarantees in favor of ANAF: RON 212,045,787 (2020: RON 205,218,325).

32 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

5. PROPERTY, PLANT AND EQUIPMENT (continued)

In 2010 it was established by ANAF an asset freeze on all fixed assets and investments and on the equity as well as on the shares, amounting to RON 1,595,020,055 in favor of the Romanian state (represented by ANAF). On these titles there was set up a rank 2 guarantee in favor of KMG International N.V.

On the guarantees in favor of ANAF, on 10 September 2010, ANAF has established an asset freeze on the investments held by the Company in its subsidiaries and on the movable and immovable assets of the Company, except inventories. The asset freeze is based on article 129 of the Fiscal Procedure Code and the main result is that the Company cannot sell / transfer the assets under freeze.

According with the Memorandum of Understanding signed with the Romanian State and approved by Government Decision no. 35/2014, ANAF should remove and revoke the distraint established on 10 September 2010. To date ANAF has not applied the requirements of the MoU and has not lifted the asset freeze.

On 9 May 2016, Rompetrol Rafinare SA was notified that it was included as a civil responsible party in a file under investigation by DIICOT (See Note 28). Also, on the same date, the movable and immovable assets of Rompetrol Rafinare SA, as well as all the investments in subsidiaries, were subject to an asset freeze.

On 22 April 2019, DIICOT issued an ordinance whereby all participations held by the company to its subsidiaries, as well as part of the movable and immovable property of Rompetrol Rafinare S.A. were released from the criminal seizure.

On 5 December 2019, DIICOT issued another Ordinance by which all criminal charges have been dismissed either on merits or because of passing the status of limitation period.

The seizure is lifted entirely but to protect the civil parties, namely Faber and State Authority which manages the State assets, a temporary seizure is kept up to USD106m over four RRC’ installations for a limited period of 30 days. If the said civil parties will not fill in a civil claim to the civil courts against Group companies, this temporary seizure is also null and void. If they still do, then it is up to the civil court to assess the grounds for keeping such a seizure in place until the civil claim will be settled.

Both Faber and AAAS and the Group challenged it. The Group challenge filled in on 27 December 2019 concerns the relevant criminal charges to be dismissed on merits and not because of passing the status of limitation. On 7 February 2020 DIICOT rejected the Group challenge against 5 December 2019 Ordinance. The group submitted to Supreme Court challenge against the DIICOT rejection and the first hearing is scheduled for 8 April 2020. The last term was schedule for 29 May 2020 and the Court postpone it for 26 June 2020 to allow the parties to prepare their defences. On 10 July 2020, the Supreme Court issued the final decision according to which all the complaints formulated against the dismissal ordinance issued on 5 December 2019, issued in file no. 225 / D / P / 2006 by the PICCJ-DIICOT were rejected as inadmissible.

Faber submitted a civil claim to the Bucharest court against both the Group companies and defendants. On May 25, the Bucharest Court rejected the request of Faber for settlement of the stamp fee that Faber should pay for its claim (for the time being is USD 530,000). On July 8, Bucharest Court annulled Faber’s claim as unstamped.

On the other hand, Faber resumed one of the older files by which Faber challenged the increasing of the Rompetrol Rafinare S.A. share capital back in 2003 - 2005. The hearing was scheduled for April 14 but the case has been suspended due to the emergency enforced since 16 March 2020. On July 20, 2021, Ialomita Tribunal rejected Faber's and Balkan’s claim.

33 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

5. PROPERTY, PLANT AND EQUIPMENT (continued)

Also, please note that in December 2020, Faber resumed some files out of those suspended back in 2005/2006. The hearings are scheduled during May 2021. By the Decisions pronounced by the Constanta Tribunal, respectively the Constanta Court of Appeal, the exceptions invoked by Rompetrol Rafinare were admitted, the actions were found as obsolete and the requests for resuming the claims as being formulated by a person without quality. Briefly, the files regard the followings: 1. Cancellation of the statutory documents issued in 2001 when the share capital was increased due to the evaluation of fixed assets. The first stage of the file was won, now Faber is asking to resume the appeal. 2. Cancellation of the statutory documents issued in 2001 regarding the change of the name of the company (Rompetrol Rafinare S.A.), additional activities and change of the Articles of Association (“AoA”) according to the company law; 3. Cancellation of the statutory documents issued in 2003 regarding the evaluation of land and increasing the share capital by Rompetrol S.A. (“RPSA”) with this land; 4. Cancellation of the statutory documents issued in 2002 regarding the evaluation of assets (construction, equipment) by which RPSA contributed to Rompetrol Rafinare S.A. share capital increase 5. Cancellation of the statutory documents issued in 2003 regarding the contribution in kind made by Rompetrol Downstream (“DWS”), Rompetrol Well Services (“RWS”), RPSA to Rompetrol Rafinare S.A. share capital; 6. Cancellation of the statutory documents issued in 2001 regarding the share capital increase according to the privatization contract; Plus, Faber submitted a request for the revision of a decision by which the court closed a file being out of date/obsolete (when Court asked the plaintiff to do something and it doesn’t within 6 months /1 year). On April 28, 2021, Constanta Tribunal admitted the exception raised by Rompetrol Rafinare and decided that the revision filed by Faber is late.

On 30 June 2021 no enforcement process has been made.

34 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

6. RIGHTS OF USE ASSETS Land, building Plant and Vehicles and special Total equipment and others constructions Initial cost / revalued Opening balance at January 01, 2020 7,019,607 7,526,480 298,832 14,844,919

Additions 3,272,548 - 1,395,558 4,668,106 Reclassifications and other transfers 497,618 (528,911) 31,293 - Re-measurement and other adjustments 49,857,211 937,527 (33,875) 50,760,863 Disposals (103,790) (6,199,685) (46,016) (6,349,491)

Closing balance at December 31, 2020 60,543,194 1,735,411 1,645,792 63,924,397

Additions - - 766,622 766,622 Re-measurement and other adjustments - 103,665 - 103,665 Disposals - - (72,981) (72,981)

Closing balance at June 30, 2021 60,543,194 1,839,076 2,339,434 64,721,704

Accumulated depreciation & Impairment Opening balance at January 01, 2020 (2,218,171) (3,466,623) (141,226) (5,826,020)

Charge for the year (2,318,164) (609,002) (219,673) (3,146,839) Reclassifications and other transfers (186,607) 205,382 (18,776) - Re-measurement and other adjustments 60,647 (31) 5,575 66,190 Accumulated depreciation of ceased rights of use assets 77,805 2,861,393 46,016 2,985,214

Closing balance at December 31, 2020 (4,584,490) (1,008,881) (328,084) (5,921,455)

Charge for the year (1,203,677) (282,853) (229,678) (1,716,208) Accumulated depreciation of ceased rights of use assets - - 72,981 72,981

Closing balance at June 30, 2021 (5,788,167) (1,291,734) (484,781) (7,564,682)

Net book value as of December 31, 2020 55,958,704 726,530 1,317,708 58,002,943 Net book value as of June 30, 2021 54,755,027 547,342 1,854,653 57,157,021

The additions during the year represent mainly contracts concluded by the Company for car leasing.

The Company recognized right of use assets for the following main categories of operational lease.

Land, buildings and special construction category includes mainly: • Rent for usage of maritime port - berths of Midia Port

Plant and equipment category includes mainly equipment for industrial water pumping stations.

Vehicles and other category includes mainly the agreements in relation to the car fleet rental.

35 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

7. FINANCIAL ASSETS

30 June 31 December 2021 2020 Investments in subsidiaries 1,629,023,359 1,629,020,055 Total 1,629,023,359 1,629,020,055

Investments in subsidiaries

Details regarding subsidiaries at 30 June 2021 and 31 December 2020 are as follows:

Ownership at Ownership at Balance as at Balance as at 30 June 31 December 30 June 31 December Range of activity 2021 2020 2021 2020

Rompetrol Downstream S.R.L. Fuel sales 99,99% 99,99% 1,090,406,067 1,090,406,067 Rompetrol Petrochemicals Petrochemicals S.R.L. 100,00% 100,00% 311,698,295 311,698,295 Rom Oil S.A. Rental services 99,99% 99,99% 191,219,964 191,216,660 Rompetrol Logistics S.R.L. Logistics operations 66,19% 66,19% 24,349,123 24,349,123 Rompetrol Quality Control Quality Control S.R.L. Services for oil products 70.91% 70.91% 11,349,910 11,349,910 Total of equity investments 1,629,023,359 1,629,020,055

*Note: all subsidiaries are Romanian companies

8. INVENTORIES, NET June 30, 2021 December 31, 2020

Crude oil and other feedstock materials 502,251,346 263,186,771 Finished products 322,575,184 168,531,778 Work in progress 153,185,903 76,351,113 Spare parts 49,706,716 49,793,286 Other consumables 22,088,618 24,081,215 Merchandises 21,325 775,593 Other inventories 5,159,675 3,600,839 Inventories reserve (73,723,944) (59,247,545)

Total 981,264,823 527,073,050

The inventories provisions mainly represent the provision for net realizable value in relation to refineries and petrochemical plant inventories such as petroleum and petrochemicals products from production and trading, raw materials and provision of old spare parts.

The movement of the provision for inventories in the first 6 months of the year 2021 and 2020 is presented below: June 30, 2021 December 31, 2020 Reserve at the beginning of the year (59,247,545) (72,021,952) Accrued provision (20,951,880) (194,249,538) Reversal provision inventories reserve 6,475,481 207,023,945 Reserve at the end of the period (73,723,944) (59,247,545)

The provisions for inventories represent provisions related to crude oil and other feedstock materials, finished products and spare parts calculated as the difference between the cost value and the net realizable value.

36 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

9. RECEIVABLES AND PREPAYMENTS, NET

June 30, 2021 December 31, 2020

Trade receivables 1,255,667,088 843,739,582 Advances to suppliers 48,443,485 25,878,282 Sundry debtors 162,584,735 165,294,207 VAT to be recovered (86,785) 1,806,438 Other receivables 104,839,049 189,366,503 Reserve for bad and doubtful debts (56,531,024) (58,694,122)

Total 1,514,916,548 1,167,390,890

The balances with related parties are presented in Note 25. The movement of provision is presented in Note 21.

June 30, 2021 December 31, 2020

Sundry debtors 162,584,735 165,294,207 Other receivables 104,839,049 189,366,503 Provision for sundry debtors and other receivables (14,874,573) (14,874,573)

Out of the total amount of other receivables and sundry debtors of RON 267.4 million (2020: RON 354.7 million) an amount of RON 14.9 million (2020: RON 14.9 million) is provisioned.

The movement in provision for expected credit losses for trade and other receivables is as follows:

June 30, 2021 December 31, 2020 Balance at the beginning of the year (58,694,122) (54,732,427) Charge for the year (154,703) (5,280,964) Utilized 2,317,225 1,318,071 Exchange rate differences 576 1,198 Balance at the end of the period (56,531,024) (58,694,122)

As at 30 June 2021 and 31 December 2020, the aging analysis of trade receivables and the respective balance of expected credit loss is as follows:

Trade receivables Days past due 30-60 60-90 90-120 30 June 21 Total Current 1-30 days days days days >120 days Expected credit loss rate 2.88% 0.00% 0.33% 0.64% 0.28% 6.76% 86.02% Estimated total gross carrying 1,255,643,117 1,155,578,319 47,775,403 1,863,189 8,239,062 465,220 41,721,924 amount at default Expected credit loss 36,116,396 - 159,631 11,849 23,383 31,454 35,890,079

Trade receivables Days past due 1 – 30 30 – 60 60 - 90 90 - 120 31 December 2020 Total Current days days days days >120 days

Expected credit loss rate 4.54% 0.00% 0.74% 0.02% 1.13% 5.28% 86.20% Estimated total gross carrying amount at default 843,717,713 746,411,840 21,482,798 28,633,147 2,161,450 897,346 44,131,132 Expected credit loss 38,279,495 - 159,631 6,592 24,381 47,392 38,041,499

37 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

9. RECEIVABLES AND PREPAYMENTS, NET (continued)

Past due but not impaired Neither past due 90-120 >120 Total not impaired 1-30 days 30-60 days 60-90 days days days

30-Jun-21 1,219,526,721 1,155,578,319 47,615,772 1,851,340 8,215,678 433,766 5,831,845 31-Dec-20 805,438,218 746,411,840 21,323,167 28,626,555 2,137,069 849,955 6,089,633

Trade receivables are not bearing interest and become mature at 30 - 90 days.

At 30 June 2021, the trade receivables at the initial value of RON 36.12 million (2020 RON 38.28 million) have been considered uncertain and provisioned. The movement of the receivable provision is to be found below: Collectively impaired

At January 1, 2020 (34,317,985) Value adjustments for impairment of receivables (5,280,779) Reversed provisions 1,318,071 Exchange rate difference 1,198 At December 31, 2020 (38,279,495) Value adjustments for impairment of receivables (154,703) Reversed provisions 2,317,225 Exchange rate difference 576 At June 30, 2021 (36,116,397)

10. CASH AND CASH EQUIVALENTS June 30, 2021 December 31, 2020

Cash at bank 151,382,194 365,496,314 Cash on hand 6,249 11,119 Transitory amounts 6,672,711 - Other cash equivalents 246,922 88,060

Total 158,308,076 365,595,493

Other cash equivalents represent in the greatest part checks to be cashed.

11. EQUITY

11.1 SHARE CAPITAL

As at 30 June 2021 and 31 December 2020, the share capital consists in 44,109,205,726 ordinary shares, authorized, wholly issued and paid up, with a nominal value of RON 0.1 per each share.

The shareholder structure at 30 June 2021 and 31 December 2020: Statutory amounts in Shareholders Percent held (%) [RON] KMG International N.V 48.11% 2,122,250,643 The Romanian State represented by The Ministry of Energy 44.70% 1,971,500,905 Rompetrol Financial Group S.R.L. 6.47% 285,408,308 Rompetrol Well Services S.A. 0.05% 2,198,030 Rompetrol Rafinare S.A. 0.01% 613,470 Others (not State or KMGI Group) 0.66% 28,949,217 Total 100% 4,410,920,573

38 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

11. EQUITY (continued)

The total value of the Company’s share capital remained unchanged in the first semester of the year 2021 and 2020.

Following the Extraordinary General Meeting of Shareholders of 30 June 2010, which approved the capital increase with up to RON 450 million, Rompetrol subscribed and paid a total of 3,294,914,165 shares (equivalent of USD 100,222,279), and minority shareholders have subscribed and paid a total number of 6,506 shares (USD 198). These shares have been registered with the Trade Register.

The proceeds of the capital increase were used to partially redeem the bonds held by the Romanian state.

After the Extraordinary General Meeting of Shareholders on 30 September 2010, the Company converted remaining unredeemed bonds into shares in favor of the Romanian State, resulting a total of 19,715,009,053 shares amounting to RON 1,971,500,905 (USD 627,546,964).

Consequently, the Romanian state, through the Ministry of Finance owns 44.7% in the Company.

11.2 SHARE PREMIUM

The share premium is the result of conversion of bonds into ordinary shares on 30 September 2010, in favor of the Romanian State, represented by the Ministry of Finance, bonds which were issued based on the Emergency Ordinance (“EGO”) 118/2003 ratified by Law 89/2005.

11.3 REVALUATION RESERVES

At 30 June 2021, the Revaluation reserves balance (presented in net of RON 496 million) is affected by the transfer to retained earnings of the difference between depreciation based on the revalued carrying amount and depreciation based on the original cost of the assets included in the building category. In compliance with OMFP 2844/2016 and with the accounting policies adopted by the Company as of 31 December 2017 the revaluation surplus included in the revaluation reserves is capitalized by transferring it to retained earnings as the use of the asset or upon disposal of the asset, unless a transfer hasn’t been already made during utilization period of the revaluated asset. Therefore at 30 June 2021 the revaluation surplus transferred to retained earnings is in amount of RON 122 million. Also the Company recognized a positive effect on the deferred tax asset in amount of RON 17.3 million related to the temporary differences resulting from the revaluation surplus, due to revaluation surplus transferred to retained earnings in 2018, 2019 and 2020.

11.4 OTHER RESERVES

Hybrid Loan

The “Other reserves” item includes the equity component of the hybrid loan as measured at its initial recognition in amount of RON 3,449 million (USD 1,022 million)

In 2012, USD 800 million of the total outstanding balance of the loan payable to KMG International NV was converted into an unsecured hybrid loan, repayable after 51 years. During 2013, an additional USD 150 million were converted, the hybrid loan amounting to USD 950 million. The loan is unsecured, subordinated to any present and future liability of the company. At maturity the loan can be repaid in cash or fully or partially converted into shares at the option of the issuer. The interest rate for this loan is 15% of the aggregate amount of the company’s annual EBIT (operational profit), and it is computed and becomes payable if the below conditions are met cumulatively (as per the addendum to the hybrid loan contract concluded in May 2021): • the company records net profit after tax for that year; • the company will distribute dividends.

39 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

11. EQUITY (continued)

The contract states that the interest rate mentioned above will be adjusted if the market conditions impose it, depending on the level of market interest existing at the time of the contract execution.

In 2017, an additional USD 72.2 million were converted to hybrid loan by conversion of a debt held in front of KMG International NV. The additional loan is unsecured, repayable after 51 years and subordinated to any present and future liability of the companies. At maturity the loan can be repaid in cash or fully or partially converted into shares. The interest rate for this loan is 2% of the aggregate amount of the company’s annual EBIT (operational profit), and it is computed and becomes payable if the below conditions are met cumulatively (as per the addendum to the hybrid loan contract concluded in May 2021): • the company records net profit after tax for that year; • the company will distribute dividends.

In 2017, the management carried out an assessment on the potential hybrid loan interest liability and recorded an amount of RON 57.2 million, based on the projected profitability of the business for the upcoming period. This liability was updated in 2018 to RON 69.3 million and no change in the interest assessment resulted for 2019. On annual basis, a reassessment of the future interest is performed with direct impact in the current year result.

As of 31 December 2020, management carried our an assessment on the potential hybrid loan interest liability and it resulted that no interest payable should be recorded based on the projected profitability of the business by the end of the contractual period, considering the current accumulated accounting losses. As result of the assessment performed, the potential hybrid loan interest liability was reversed through the 2020 year result.

12. TRADE AND OTHER PAYABLES

June 30, 2021 December 31, 2020

Trade payables 2,870,193,834 2,475,463,085 VAT payable 493,616,578 737,727,968 Special found tax for oil products 27,560,631 27,560,632 Taxes payable (1,180) (1,180) Employees and social obligations 11,202,743 17,878,248 Other liabilities 1,986,446,168 1,516,249,146

Total 5,389,018,774 4,774,877,899

The Company has a cash pooling agreement in place in order to implement a cash balance optimization system, where KMG Rompetrol S.R.L. is “Coordinating Company”, and the group companies are participating companies.

The cash pooling debt amounts to RON 1,981.05 million (2020: RON 1,511.15 million) and is recognised in “Other liabilities”.

13. CONTRACT LIABILITIES June 30, 2021 December 31, 2020 Short-term advances from other customers 82,388,516 91,363,247 Total short-term advances 82,388,516 91,363,247

Contract liability relates to payments received in advance of performance under the contract. Contract liabilities are recognised as revenue as (or when) the Company performs under the contract.

40 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

14. SHORT-TERM LOANS

Short-term loan from related parties: June 30, 2021 December 31, 2020

KMG International N.V. - 42,260,547 Short-term facility for working capital needs in amount of up to USD 250 million, maturity date - 31 December 2020, assignment of receivables; real movable security interest over the investments in Rompetrol Logistics SRL, Rompetrol Petrochemicals SRL, Rompetrol Downstream SRL, Romoil SA; real movable security interest over the bank accounts.The facility has been fully reimbursed in February 2021.

Interest due - 6,688,483 - 48,949,030

Short-term loan from banks June 30, 2021 December 31, 2020

Banca Transilvania (overtaken from Bancpost) 72,351,996 90,353,995 Rompetrol Rafinare S.A.: Revolving credit ceiling on short term credit facility of up to EUR 30 million, for working capital purposes, for issue of letters of credit and letters of guarantee. Maturity date is July 30, 2021; guarantee on the credit balances of all current accounts; Corporate unconditional and irrevocable guarantee issued by KMG International; mortgage on the delayed coking unit; pledge on machinery and equipment; mortgage on real estate land area of 30,380.96 m2; assignment of rights from insurance compensation. Banca Transilvania (overtaken from Bancpost) 14,028,772 29,147,217 Short-term credit facility type cash and non-cash amounting to EUR 27,961,890 for the current activity, issuing letters of credit and letters of guarantee, due on July 30, 2021; guarantee on the credit balances of all current accounts; Corporate unconditional and irrevocable guarantee issued by KMG I; assignment of rights from insurance compensation; rank mortgage on installations: HDV = EUR 9.3 million; DAV = EUR 14,3 million; DGRS =EUR 7.3 million; AFPE = EUR 16.08 million; GA (G1 + G3) = EUR 5.2 million; ON202 = EUR 5.7 million; warranty on land and buildings - EUR 181,000; warranty on the equipment; pledge on movable production assets EUR 10.9 million. Interest due 321,991 416,143 86,702,759 119,917,355

Syndicated loan – through Unicredit Bank as payer agent (Facility C) 207,125,000 89,986,686 Syndicated loan – auxiliary component representing overdraft loan granted by Unicredit Bank 8,336,702 - Syndicated loan – auxiliary component representing overdraft loan granted by ING BANK 2,210,936 -

TOTAL 304,375,397 209,904,041

41 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

15. LONG-TERM LOANS

June 30, 2021 December 31, 2020 Syndicated loan – through Unicredit Bank as payer agent Up to USD 435 million loan facility for repayment of existing loans, current activity, issuing letters of credit and letters of guarantee; concluded by group companies (Rompetrol Rafinare, Rompetrol Downstream SRL, KazMunayGas Trading AG, KMG Rompetrol SRL - as borrowers and guarantors and -in KMG International NV as guarantor) with the following banks (UniCredit Bank SA, Raiffeisen Bank SA, BCR SA, ING Bank NV - Bucharest Branch) and Unicredit Bank AG, London Branch as agent. The facility consists of three parts: (I) USD 240 million committed line and the maturity date is April 23, 2023, (II) USD 75 million revolving facility with maturity October 28, 2021 and (III) USD 120 million uncommitted with the maturity date is April 23, 2022. The facility is secured by: inventories, receivables, gas stations, depots and current accounts.

596,159,985 570,759,324

The movement of loans in the first 6 months of the year 2021 is presented below:

At January 01, 2021 Movement At June 30, 2021

Long-term borrowings from banks 570,759,324 25,400,661 596,159,985

Short-term borrowings from banks 209,487,898 94,565,507 304,053,405 Short-term borrowings from shareholders and related parties 42,260,547 (42,260,547) -

Total 822,507,769 77,705,621 900,213,391

Interest short-term borrowings from banks 416,143 (94,152) 321,991 Interest short-term borrowings from shareholders and related parties 6,688,484 (6,688,484) -

Total 7,104,627 (6,782,636) 321,991

42 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

16. LEASE DEBTS 2021 2020 Opening balance at 01 January 59,524,287 11,820,321 Additions 701,269 920,685 Re-measurement 103,665 46,855,278 Payments (2,340,582) (4,383,624) Interest accrued 962,425 619,635 Exchange rate impact 716,719 194,647 Other changes - 3,497,345 As at 30 June / 31 December 59,667,782 59,524,287 Non-current 56,973,416 56,981,732 Current 2,694,366 2,542,555

17. PROVISIONS

The movement of the provisions is presented below:

Other Unwinding of As at 1 January comprehensive Arising during As at 30 June discount 2021 income the year 2021

Provision for litigations 1,705,380 - - - 1,705,380 Retirement benefit provision 55,555,814 - - - 55,555,814 Environmental provision 239,773,706 - - - 239,773,706 Total 297,034,901 - - - 297,034,901

Environmental provision

As of 31 December 2020, the Company recognized an environmental provision of RON 239.8 million Total costs incurred during 2020: RON 25.8 million. At the end of 2020, a re-assessment of the site restauration provision was performed by considering the work done during the year, the updated variable indicators (e.g. exchange rate and discount rate) and the purchase prices (estimated for the full project by using the actual prices from the agreements in place for lagoons 16 and 17). The results of the reassessment lead to a reversal of provision in amount of RON 32.0 million being mainly generated by the actual costs incurred during 2020, partially offset by the unwinding effect of RON 8.2 million.

Retirement obligations provision

Under the collective labor agreement in force, employees are entitled to specific retirement benefits that are payable on retirement, if the employees are employed with the entity at the date of their retirement. A corresponding provision has been recognized based on: the specific benefits provided in the agreement; the number of employees working within the entity; and actuarial assumptions regarding mortality, staff turnover etc. For the computation an actuarial valuation is involved making various assumptions that may differ from actual developments in the future. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The related service cost and interest expense are charged to period profit and loss, while all the actuarial gains and losses are fully recognized in other comprehensive income in the period in which they occur.

43 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

18. NET REVENUES FROM CONTRACT WITH CUSTOMERS

January - June 2021 TOTAL S1 2021 January - June 2020 TOTAL S1 2020 Refining Petrochemicals Refining Petrochemicals

Gross revenues from the sale of finished oil products 7,731,712,036 466,156,582 8,197,868,618 5,218,991,086 272,469,613 5,491,460,699 Revenues from petrochemicals trading - 2,826,156 2,826,156 - 55,690 55,690 Revenues from other merchandise sales 866,581 - 866,581 674,796 - 674,796 Revenues from utilities sold 4,928,922 - 4,928,922 4,388,319 - 4,388,319 Revenues from the sale other products 584,207 - 584,207 297,469 - 297,469 Revenues from other services 7,465,772 - 7,465,772 7,660,607 - 7,660,607

Gross Revenues 7,745,557,517 468,982,738 8,214,540,256 5,232,012,278 272,525,303 5,504,537,581

Less sales taxes (2,198,016,723) - (2,198,016,723) (1,622,042,779) - (1,622,042,779)

Total 5,547,540,795 468,982,738 6,016,523,533 3,609,969,499 272,525,303 3,882,494,802

44 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

19. COST OF SALES January - June January - June 2021 2020

Crude oil and other raw materials 5,483,948,983 3,646,088,635 Consumables and other materials 29,875,982 25,435,711 Utilities 229,729,424 206,268,043 Staff costs 49,583,876 50,099,112 Transportation 38,707 35,058 Maintenance 48,458,766 42,383,005 Insurance 3,273,883 3,085,794 Environmental expenses 18,465,584 22,316,662 Other 26,438,750 24,768,673

Cash production cost 5,889,813,954 4,020,480,693

Depreciation and amortization 171,579,195 121,878,255

Production costs 6,061,393,150 4,142,358,948

Less: Change in inventories (242,912,388) 206,974,127 Less: Own production of property, plant & equipment (638,820) (20,523,847)

Cost of petrochemicals trading 2,463,538 54,183 Cost of other merchandise sales 829,172 619,150 Cost of utilities sold 4,296,809 4,181,284 Realised (gains)/losses on derivatives 58,698,404 (206,383,944)

Total 5,884,129,865 4,127,279,901

20. SELLING, GENERAL AND ADMINISTRATIVE COSTS, INCLUDING LOGISTIC COSTS

January - June January - June 2021 2020

Staff costs 15,300,633 24,541,233 Utilities 6,605,520 11,916,546 Transportation 23,885,922 23,625,341 Professional and consulting fees 22,787,760 31,044,535 Consumables 683,565 1,078,084 Marketing 2,985 82,762 Taxes 2,141,899 2,235,979 Communications 24,581 24,231 Insurance 767,580 1,747,792 IT related expenditures 2,640,627 4,139,118 Environmental expenses 6,425,212 10,328,054 Maintenance 6,451,464 10,465,224 Fees and penalties 6,410,678 6,282,371 Other expenses 12,416,045 20,828,750

Costs before depreciation 106,544,472 148,340,020

Depreciation and amortisation 22,718,544 48,785,509

Total 129,263,015 197,125,528

45 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

21. OTHER OPERATING (INCOME) / EXPENSES, NET

January - June January - June 2021 2020

Loss / (gain) from receivables (including provisions and write- off), net (2,162,522) 153,514 Loss / (gain) from provision for inventories and write-off, net 14,476,399 (4,716,736) Other expenses / (income), net 25,919,011 (318,366)

Total 38,232,888 (4,881,588)

22. FINANCIAL COST, FINANCE INCOME AND FOREIGN EXCHANGE

January - June January - June 2021 2020

Finance cost Interest expense 22,065,037 20,264,875 Interest expense shareholders and related parties 29,943,094 23,561,653 Other financial expense 25,023,996 54,351,637 77,032,127 98,178,166

Finance income Interest income (3,694,109) (2,361,524) Other financial income (1,870,029) (6,748,543) (5,564,138) (9,110,068)

Finance cost / (income), net 71,467,989 89,068,098

Unrealized net foreign exchange losses/(gains) 140,058,850 10,523,785 Realized net foreign exchange losses/(gains) 9,772,056 55,493,195 Foreign exchange (gain)/loss, net 149,830,906 66,016,980

Total 221,298,895 155,085,078

46 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

23. INCOME TAX

The income tax rate was 16% in first semester of the year 2021 and 2020.

DEFERRED TAX

Balance at Balance at 1 January Charged to Charged to 30 June 2021 Profit & loss Equity 2021

Temporary differences Asset/Liability Property, plant and equipment 1,148,740,095 - - 1,148,740,095 Provisions (239,773,708) - - (239,773,708) Fiscal loss (850,106,219) - - (850,106,219)

Total temporary differences (Asset) / Liability 58,860,169 - - 58,860,169 Property, plant and equipment 183,798,415 - - 183,798,415 Provisions (38,363,793) - - (38,363,793) Fiscal loss (136,016,995) - - (136,016,995) Deffered tax (assets)/ liability recognised 9,417,626 - - 9,417,626

Contingencies related to taxation

The Romanian Government has a number of agencies that are authorized to conduct audits (controls) of Romanian companies as well as foreign companies doing business in Romania. These controls are similar in nature to tax audits performed by tax authorities in many countries, but may extend not only to tax matters but to other legal and regulatory matters in which the applicable agency may be interested.

Management believes that it has adequately provided for tax liabilities in the accompanying financial statements.

47 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

24. OPERATING SEGMENT INFORMATION

a) Business segments

For management purposes, the company is organized on two segments-refining and petrochemical.

June 30, 2021 Profit and loss

Unalocated Refining Petrochemicals amounts between Total the segments

Net turnover 5,547,540,795 468,982,738 - 6,016,523,533 Cost of sales (5,525,752,774) (358,377,090) - (5,884,129,865)

Gross profit 21,788,020 110,605,648 - 132,393,668

Selling, general and administrative expenses (107,725,235) (21,537,781) - (129,263,015) Other operating revenues / expenses, net (38,232,888) - - (38,232,888)

Operating profit/ (loss) (124,170,102) 89,067,867 - (35,102,235)

Financial expenses - - (77,032,127) (77,032,127) Financial revenues - - 5,564,138 5,564,138 Net foreign exchange gains / (losses) - - (149,830,906) (149,830,906)

Profit/(loss) before income tax (124,170,102) 89,067,867 (221,298,895) (256,401,130)

Deferred tax - - - -

Net Profit / (Loss) (124,170,102) 89,067,867 (221,298,895) (256,401,130) out of which Depreciation and amortization (160,046,981) (34,250,758) - (194,297,739)

48 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

24. OPERATING SEGMENT INFORMATION (continued)

June 30, 2020 Profit and loss

Unalocated

Refining amounts between Total Petrochemicals the segments

Net turnover 3,609,969,499 272,525,303 - 3,882,494,802 Cost of sales (3,810,180,923) (317,098,978) - 4,127,279,901)

Gross loss (200,211,425) (44,573,675) - (244,785,099)

Selling, general and administrative expenses (167,271,637) (29,853,892) - (197,125,528) Other operating revenues / expenses, net 4,881,588 - - 4,881,588

Operating loss (362,601,473) (74,427,567) - (437,029,040)

Financial expenses - - (98,178,166) (98,178,166) Financial revenues - - 9,110,068 9,110,068 Net foreign exchange gains / (losses) - - (66,016,980) (66,016,980)

Loss before income tax (362,601,473) (74,427,567) (155,085,078) (592,114,118)

Deferred tax - - - -

Net Loss (362,601,473) (74,427,567) (155,085,078) (592,114,118) out of which Depreciation and amortization (142,626,214) (28,037,549) - (170,663,764)

b) Geographical segments

All the production facilities of the Company are located in Romania. The following breakdown provides an analysis of the net turnover of the Company depending on the geographical market (based on customers location):

S1 2021 S1 2020

Romania 3,932,838,595 2,549,019,611 Europe 1,988,930,047 1,269,716,851 Asia 92,856,647 46,348,781 America 1,898,245 17,409,559

Total 6,016,523,533 3,882,494,802

49 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

25. RELATED PARTIES

The ultimate parents of the Company are the company National Welfare Fund “Samruk-Kazyna” Joint Stock Company (90%) and National Bank of Republic of Kazakhstan (10%), companies with its headquarters in Kazakhstan, entirely owned by the Kazakh State. The related parties and the nature of relationship is presented below:

Name of the affiliated entity Nature of the relation

KMG International N.V. Majority shareholder Oilfield Exploration Business Solutions S.A. Company held by KMG International N.V Rominserv S.R.L Company held by KMG International N.V KazMunayGas Trading AG Company held by KMG International N.V Rompetrol Well Services S.A. Company held by KMG International N.V Palplast S.A. Company held by KMG International N.V Rompetrol Bulgaria JSC Company held by KMG International N.V Intreprinderea Mixta Rompetrol Moldova SA Company held by KMG International N.V Rompetrol Georgia LTD Company held by KMG International N.V Midia Marine Terminal S.R.L. Company held by KMG International N.V Rompetrol Financial Group S.R.L. Company held by KMG International N.V Dyneff SAS A company of Rompetrol France group, where KMG International N.V. owns 49% KMG Rompetrol SRL Company held by KMG International N.V Byron Shipping Ltd Company held by KMG International N.V Byron Shipping S.R.L. Company held by KMG International N.V Rompetrol Albania Wholesale Sh.A. Company held by KMG International N.V (in liquidation) Rompetrol Ukraine LTD Company held by KMG International N.V (KMG International N.V. owns 50%) Rominserv Valves Iaifo SRL Company held by KMG International N.V KAZMUNAYGAS – Engineering LLP (former Company held by KMG International N.V Rominserv Kazakhstan LLC) Uzina Termoelectrica Midia S.A. Company held by KMG International N.V (KMG International group holds: 43.42%) Global Security Sistem S.A. Company held by KMG International N.V (indirect ownership by KMG International N.V.: 51%) Global Security Systems Fire Services SRL Company held by KMG International N.V (indirect ownership by KMG International N.V.: 51%) Rompetrol Downstream S.R.L. Company affiliated to the Company Rompetrol Petrochemicals S.R.L. Company affiliated to the Company Rom Oil S.A. Company affiliated to the Company Rompetrol Logistics S.R.L. Company affiliated to the Company Rompetrol Quality Control S.R.L. Company affiliated to the Company Rompetrol Gas S.R.L. Company held by KMG International N.V Rompetrol France SAS A company of Rompetrol France group, where KMG International N.V. owns 49% Agat Ltd Company held by KMG International N.V (indirect ownership by KMG International N.V.: 50%) Rompetrol Albania Downstream Sh.A. Company held by KMG International N.V (in liquidation) Rompetrol Albania Sh.A. Company held by KMG International N.V (in liquidation) Rompetrol Distribution Albania Sh.A Company held by KMG International N.V (in liquidation) TRG Petrol Ticaret AS Company held by KMG International N.V (indirect ownership by KMG International N.V.: 51%) Rompetrol Energy S.A Company held by KMG International N.V (KMG International owns: 99%) KazMunayGas Engineering B.V. Company held by KMG International N.V KMG Rompetrol Services Center SRL (former Company held by KMG International N.V Rompetrol Exploration & Production SRL) Rompetrol Drilling Company held by KMG International N.V Benon Rompetrol LLC Company held by KMG International N.V (indirect ownership by KMG International N.V.: 40%) The Romanian State and the Romanian Authorities Significant shareholder Fondul de Investitii in Energie Kazah-Roman S.A. Company held by KMG International N.V KMG ROMPETROL DEVELOPMENT S.R.L. Company held by KMG International N.V Oman JV Societate a Grupului KMG International

Note: there are also 9 branches and representatives

50 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

25. RELATED PARTIES (continued)

The sales to and purchases from related parties are made in the ordinary course of business and are undertaken on a basis that considers prevailing market terms and conditions as applicable to the nature of goods and services provided or received.

A. At 30 June 2021 and 31 December 2020, Rompetrol Rafinare had the following balances with the related parties:

Receivables and other assets June 30, 2021 December 31, 2020

KazMunayGas Trading AG 202,231,144 123,320,649 Rompetrol Downstream S.R.L 740,272,737 509,401,057 Rompetrol Petrochemicals S.R.L. 481 481 KMG International N.V. 4,892,900 10,150,180 Rompetrol Moldova ICS 277,489 - Rompetrol Bulgaria JSC 3,427,917 2,110,141 Rominserv S.R.L. 2,295,478 9,474,667 Rompetrol Quality Control S.R.L. 133,611 145,177 Rompetrol Logistics S.R.L 2,417 3,015 Midia Marine Terminal S.R.L. 774,731 899,856 Uzina Termoelectrica Midia S.A. 5,811,136 8,964,455 KMG Rompetrol SRL 22,345,243 78,840,453 Global Security Systems S.A. 607,092 606,223 Kazmunaygas – Engineering LLP (former Rominserv 696,632 666,950 Kazakhstan(RKZ)) Palplast S.A. 2,800,002 2,800,002 Byron Shipping Ltd. 1,812 2,802 Rompetrol Ukraina 15,686 15,018 Oilfield Exploration Business Solutions S.A. 3,023,997 3,026,298 Rompetrol Financial Group SRL 10,945 10,760 KMG Rompetrol Services Center SRL 52,587 50,933 KMG ROMPETROL DEVELOPMENT (RDV) 691,278 -

Total 990,365,317 750,489,117

51 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

25. RELATED PARTIES (continued)

Payables, loans and other liabilities June 30, 2021 December 31, 2020

KazMunayGas Trading AG 2,620,857,367 1,979,547,932 Rompetrol Downstream S.R.L 31,110,390 66,410,166 Rompetrol Petrochemicals S.R.L. 8,315,590 1,334,066 KMG International N.V.- loans(note14) - 42,260,547 KMG International N.V.-interest - 6,688,483 KMG International N.V.-trade debts 13,265,119 20,814,163 Rompetrol Gas SRL 14,995,223 19,021,537 Rompetrol Moldova ICS 27,147,071 13,299,899 Rominserv S.R.L. 37,051,176 80,239,429 Rompetrol Quality Control S.R.L. 14,620,887 15,608,669 Rompetrol Logistics S.R.L - 859,818 Midia Marine Terminal S.R.L.-trade debts 35,673,361 33,332,021 Uzina Termoelectrica Midia S.A. 17,104,013 22,657,670 KMG Rompetrol SRL- debt cash pooling 1,976,233,541 1,507,235,473 KMG Rompetrol SRL-interest cash pooling 4,819,860 3,911,685 KMG Rompetrol SRL-trade debts 341,940 11,172,810 Global Security Systems S.A. 614,628 614,628 Global Security Systems Fire Services S.R.L. 1,196,842 856,705 KMG Rompetrol Development 2,501,690 371,820 Rompetrol Exploration & Production S.R.L. 66 66 Palplast S.A. 3,304 - Rompetrol Energy S.A. 198,896 - KMG Rompetrol Services Center SRL 1,851,384 2,471,892 TRG Petrol Ticaret Anonim Sirketi 10,346 10,346

Total 4,807,912,695 3,828,719,827

52 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for the financial year ended 30 June 2021 (All amounts expressed in Lei (“RON”), unless otherwise specified)

25. RELATED PARTIES (continued)

In the first semester of the year 2021, respectively in the first semester of the year 2020, Rompetrol Rafinare had the following transactions with the related parties: 0 0 Sales Purchases Name of related party Nature of transaction , sales / purchases S1 2021 S1 2020 S1 2021 S1 2020

KazMunayGas Trading AG Raw materials / Petroleum products 1,315,018,430 761,173,525 5,530,818,228 3,095,371,620 Rompetrol Downstream S.R.L Petroleum products, rent, utilities and other 2,671,364,168 1,637,698,567 1,086,903 1,068,032 KMG International N.V. Loan interest, management services - - 4,700,840 6,200,554 Platform operation, propane / Petroleum Rompetrol Gas SRL 204,524,029 126,098,446 267,630 1,918,008 products, rent, other Rompetrol Moldova ICS Sales intermediary services 303,764,139 216,032,508 - - Rompetrol Bulgaria JSC Sales intermediary services 47,728,596 36,597,103 - - Rominserv S.R.L. Acquisition and maintenance of fixed assets 1,319,464 1,432,080 76,420,936 389,973,523 Laboratory analysis/Rent, utilities, other Rompetrol Quality Control S.R.L. 700,737 743,497 15,045,082 15,308,611 services Rompetrol Logistics S.R.L Transport, rent/Rent, utilities 7,528 5,972 82,162 82,162 Handling services/ Rent,utilities, reinvoicing, Midia Marine Terminal S.R.L. 733,522 516,871 28,201,284 32,703,635 loan interest ,others Rompetrol Well Services S.A. Loan interest - - 77 232 Uzina Termoelectrica Midia S.A. Acquistion of utilities 34,275,167 37,313,149 61,029,652 61,279,830 KMG Rompetrol S.R.L. Loan interest, management services 2,881,714 2,363,044 47,412,301 49,596,928 Global Security Systems S.A. Security and protection services 730 921 4,106,648 4,064,614 Global Security Systems Fire Services S.R.L. Security and protection services - - 3,829,721 - Byron Shipping S.R.L. Demurrage /Rent, reinvoices of other services 11,609 12,134 - 76,401 Rompetrol Financial Group SRL Loan interest - - - 63,517 Romoil S.A. Reinvoicing bank loan fees - - 3,304 - KMG Rompetrol Services Center SRL Shared services 261,329 284,027 8,507,405 8,678,913

4,582,591,163 2,820,271,844 5,781,512,173 3,666,386,581

The Ministry of Public Finance of Romania (“MFPR”) held 44.6959% of the share in Rompetrol Rafinare SA from September 2010 until July 2012. Starting July 2012, based on a Government Ordinance, the Ministry of Economy Trade and Business Environment (“MECMA”) became shareholder until May 2013 when, following the reorganization of MECMA, the Ministry of Economy (“ME”) became the new shareholder. The ministry was later renamed as Ministry of Energy, Small- and Medium-sized Enterprises and Business Environment, afterwards renamed as Ministry of Economy, Energy and Business Environment according to the OUG 68/11.06.2019. Its current name is Ministry of Energy according to the OUG 212/2020.

As a result MFPR, MECMA, ME and Other Authorities are considered to be a related party of the The Group. There are no transactions, balance sheets at the year-end in relation with MFPR, MECMA, ME and other Romanian authorities during the time of their affiliation, other than those arising from Romanian fiscal and legislation requirements.

53 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

26. EARNINGS PER SHARE

The calculation of the basic earnings per share attributable to the ordinary equity holders of the Company is based on the following data:

January - June January - June 2021 2020

Net profit (+), loss (-) (256,401,130) (592,114,118) Average number of shares 44,109,205,726 44,109,205,726

Result per share - base (bani/share) (0.58) (1.34)

27. CONTINGENT LIABILITIES

Rompetrol Rafinare SA - Distressed Assets - Hybrid Conversion

Emergency Ordinance (“EGO”) 118/2003 approved by Law 89/2005 and the Issuing Convention of 5 December 2003 (“Issuing Convention”), regulated the conversion of RON 2,177.7 million of state budget liabilities, including penalties, into 22,812,098 EUR - denominated long-term reverse-convertible bonds with a face value EUR 25 each. (i.e. a total of EUR 570.3 million at the RON / EUR exchange rate as of 30 September 2003 or 3.8185 RON / EUR or USD 719.4 million at the same date), hereinafter referred to as “Hybrid instruments” or “Bonds”. The Bonds carried interest and were redeemable on or before maturity, whereas EGO specifically provided that bonds not redeemed by 30 September 2010 should be convertible, at a fixed conversion rate, into ordinary shares of Rompetrol Rafinare S.A., at the option of the Company (KMGI).

In accordance with the requirements of EGO 118/2003 and the Issuing Convention, Rompetrol Rafinare S.A. undertook the following transactions in relations to bonds: a. the Extraordinary General Meeting of the Shareholders as of June 30, 2010 approved, the increase of the Company’s share capital by USD 100.2 million; b. On August 9, 2010, Rompetrol Rafinare S.A. redeemed 2,160,000 Bonds in aggregate amount of EUR 54 million; c. On September 30, 2010, the Extraordinary General Meeting of the Shareholders of Rompetrol Rafinare S.A. approved conversion of the unredeemed Bonds into shares, the corresponding share capital increase and the exact numbers of shares to be received by the Romanian Ministry of Public Finance for the Bonds it held. The number of shares was calculated based on the conversion rate of the bonds into shares indicated by the EGO 118/2003 and the Issuing Convention.

The Ministry of Public Finance publicly took an adverse position against such course of action and challenged it in various course procedures.

On 10 September 2010, the National Agency of Fiscal Administration (“ANAF”) issued a decision for establishment of a precautionary seizure on all the participations held by Rompetrol Rafinare S.A. and its affiliates as well as on all movable and immovable assets of Rompetrol Rafinare S.A. except inventories. This measure is still in force and it is challenged by the Group. By now the seizure has not produced direct effects on the Company’s recurring operations.

On 15 February 2013, the Group and the Office of the State Ownership and Privatization in Industry (“OPSPI”), representing the Romanian State, concluded a memorandum of understanding aiming at the amiable settlement of the Litigations. As a result of the Memorandum, the parties agreed the suspension of the court proceedings, in order to allow the time to implement the Memorandum, which was acknowledged by the court on 18 February 2013.

54 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

27. CONTINGENT LIABILITIES (continued)

On 22 January 2014, the Memorandum of Understanding was approved by Government Decision no. 35/2014 pursuant to which the Ministry of Public Finances has been authorized and mandated to pursue all procedural actions required for the withdrawal of the claims and the termination of all Litigations, including the Main Claim, without hearing of the merits thereof. The Memorandum of Understanding includes the following aspects: • OPSPI will sell and the Group will acquire shares owned by OPSPI and representing 26.6959% of Rompetrol Rafinare S.A.’s share capital for a cash consideration of 200 million USD; • The KMGI Group will invest in energy project related to its core activities an amount estimated at 1 USD billion over 7 years; • The Ministry of Finance will renounce all cases against the GMS decisions related to the conversion and will cancel the forced execution title.

Following the hearing on 24 March 2014 it is confirmed that the court case is closed following the Ministry of Finance renouncing all the court actions that were in progress that are mentioned above.

Following this decision, Rompetrol submitted to the Romanian authorities a requirement for the annulment of the seizure. As long as the court decision confirmed that the state is a shareholder of Petromidia and therefore there is no amount payable by the Refinery to the state, there is no object for the seizure. The Group reverted again in February 2020 to ANAF for lifting the seizure and pointed out there is no legal rationale to be maintained. Besides all of these, the seizure is still in place.

The Shareholders agreement for the set-up the Kazakh Romanian Investment Fund (“KRF”) was signed on 26 October 2018, and soon after KRF was registered as a joint stock company. All its managing bodies were organized and are functional.

Following the sign off of the association agreement for the establishment of The Kazakh - Romanian Energy Investment Fund (between KazMunayGas International (KMGI) and Societatea de Administrare a Participaţiilor în Energie (SAPE)), in accordance with the provisions of the Memorandum of Understanding, in October 2018, the investment period of 7 years is established between 2019 – 2025.

Contingencies – risk management and internal control

The Company’s commitment to integrity, responsibility and ethical conduct is particularly important in the area of bribery and corruption prevention and detection.

Rompetrol Rafinare is committed to conducting its business fairly, honorably, with integrity and honesty and in compliance with all applicable laws. The Company adopts an approach of zero -tolerance to bribery and corruption in all its business dealings and relationships, wherever it operates.

Whistleblowing incidents are taken very seriously by the Company and its directors. Any complaints or allegations received are investigated properly by the assigned departments. Rompetrol Rafinare has established and maintained an open channel to handle and discuss internal reports concerning finance, internal control and fraud to ensure that all reports will receive enough attention. The internal investigations conducted during 2021 did not reveal any cases of ethical misconduct and non-compliance with applicable laws and regulations.

55 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

28. LEGAL MATTERS

Litigation with the State involving criminal charges

Starting with 22 March 2005, a number of criminal investigations have been initiated against certain former shareholders directors, managers and external censors of Rompetrol Rafinare S.A. and other individuals; these investigations were carried out at a formal level and materialized into different criminal proceeding activities (including specialized judicial expertise), currently undergoing the criminal prosecution phase. At the present date, only one of the directors of the Company who is involved in the investigation, still works for KMG International Group.

The charges brought against the defendants upon the initiation of the criminal investigations were: a) failure to fulfill the investment commitments undertaken under the privatization contract concerning the Parent; b) unlawful statement of excises and other debts to the state budget; c) incorrect keeping of accounting registries regarding the technological products operations undertaken at the oil terminal owned by Oil Terminal, charges which concern events that took place during April 2001 – October 2002; d) adoption of GEO no. 118/2003.

The freezing of the assets does not impact the inventories, receivables and the bank account of Rompetrol Rafinare and this allows to the company to continue normally the day by day operations.

Meanwhile, the companies also challenged on 30 May 2016 the Orders to the superior prosecutor. The submission was rejected in December 2016.

Considering the nature of the allegations submitted by DIICOT, the KMGI companies applied for a motion of disjoining (cerere de disjungere in Romanian) in order to have two different cases which shall settle the allegations for Rompetrol Rafinare S.A.’ privatization and post-privatization period – one file and a second one for the allegations related to the issuance of the bonds by Rompetrol Rafinare S.A. (OUG 118/2003). No reply received yet from DIICOT on this topic.

On 12 April 2017, the companies submitted also their application by which they asked the dismissals of the allegations regarding the OUG 248/200 (regarding the privatization of Rompetrol Rafinare S.A.) and OUG 118/2003 (the issuance of bonds) taking into consideration the recent Constitutional Court decision no. 68/2017 by which the Court settled that the legislative process, as well as the aspects regarding the opportunity and/or lawfulness of a deed issued either by the Parliament and Government cannot be subject of a criminal inquiry and the Constitution provides other leverages assigned to other public authorities to control such kind of things. No reply received yet from DIICOT on this topic.

On 10 May and 28 June 2017, the Companies submitted their Statement of claims against the DIICOT allegations for the following topics: Libya receivables, Rompetrol Rafinare S.A. privatization and post- privatization period, privatization of Vega refinery and the issuance of bonds (OUG 118/2003), intra- companies transactions and budgetary taxes and duties. 56 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

28. LEGAL MATTERS (continued)

On 17 July 2017 DIICOT issued an Ordinance which generally keeps the approach of the Orders issued in 2016 but let the civil parties namely, Ministry of Energy and Ministry of Finance, to provide the figures for the alleged damage they incurred as well as the evidences for supporting any alleged damage. The only alleged damage party which requested the alleged damage is Faber Invest & Trade, by its legal representative, for an amount of USD 96.6 million.

A statement of defense against the July 2017 Ordinance has been submitted on December 22, 2017 as well a challenge against it submitted in front of the higher prosecutor on September 29, 2017.

On 12 April, 2018 DIICOT issued an Ordinance which cancelled the previous Ordinances dated 17 July 2017, 18 September 2017 and December 6, 2017 issued by the in-charge prosecutor of the file by which it was an extension of the inquiry to various individuals and/or some of the criminal offences have been approached in a worse manner for some of the defendants. Considering that those 3 ordinances cancelled have as background the April 2016 Ordinance issued by in-charge prosecutor by which the freezing orders were imposed over the assets of KMGI, the Group companies KMG International N.V., Rompetrol Rafinare S.A., OEBS have submitted on April 20, 2018 a new challenge in front of the High Court of Cassation and Justice for lifting the asset freeze. On May 22, 2018 the Court rejected again the challenges submitted by the Group. An appeal against this court resolution was submitted to assess from constitutional point of view if a legal provision based on which the challenges were rejected match with the Constitution principles. The first hearing of the appeal was scheduled for October 8, 2018. The court postponed the issuance of a resolution for October 22, 2018 when the Court rejected the forwarding of the case to the Constitutional Court as well.

A similar challenge was submitted on 23 November 2018. On 4 December 2018 the prosecutor agreed in principle with a partial release of the seizure provided that an expertise will be performed, and the final report will show that the value of the assets frozen exceed the alleged claims. The report was submitted to DIICOT on 15 March 2019. A new request for partial release of seizure was filled in on April 8, 2019.

A new ordinance was issued by DIICOT on 9 November 2018 which changes the legal framework for all deeds investigated in the case.

On 22 April 2019 DIICOT issued an ordinance whereby all participations held by the company to its subsidiaries, as well as part of the movable and immovable property of the company were released from the criminal seizure.

On 22 July 2016, NC KMG and KMGI submitted to the Romanian authorities the Notice of Investment Dispute based on the Agreement between the Government of Romania and the Government of the Republic of Kazakhstan, the Agreement between the Government of the Kingdom of the Netherlands and the Government of Romania and the Energy Charter Treaty.

As of October 23, 2019, all the shares seized back in May 2016 as well as the KMGI assets, and assets of Refinery located on the Vega, Ploiesti Platform and OEBS assets were released from seizure (on April 22, 2019). Therefore, the only assets still remaining under freezing orders are the ones of Rompetrol Rafinare S.A. located in Navodari on the Petromidia refinery Platform. On June 12 and July 29, 2019 the Group submitted another statement of defence by challenging the allegations mentioned within the case.

On 5 December 2019, DIICOT issued another Ordinance by which all criminal charges have been dismissed either on merits or because of passing the status of limitation period.

57 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

28. LEGAL MATTERS (continued)

Faber submitted a civil claim to the Bucharest court against both the Group companies and defendants.

On the other hand, Faber resumed one of the older files by which Faber challenged the increasing of the Rompetrol Rafinare S.A. share capital back in 2003 - 2005. The hearing was scheduled for April 14 but the case has been suspended due to the emergency enforced since 16 March 2020. On July 20, 2021, Ialomita Tribunal rejected Faber's and Balkan’s claim.

Also, please note that in December 2020, Faber resumed some files out of those suspended back in 2005/2006. The hearings are scheduled during May 2021. By the Decisions pronounced by the Constanta Tribunal, respectively the Constanta Court of Appeal, the exceptions invoked by Rompetrol Rafinare were admitted, the actions were found as obsolete and the requests for resuming the claims as being formulated by a person without quality. Briefly, the files regard the followings: 1. Cancellation of the statutory documents issued in 2001 when the share capital was increased due to the evaluation of fixed assets. The first stage of the file was won, now Faber is asking to resume the appeal. 2. Cancellation of the statutory documents issued in 2001 regarding the change of the name of the company (Rompetrol Rafinare S.A.), additional activities and change the AoA according to the company law; 3. Cancellation of the statutory documents issued in 2003 regarding the evaluation of land and increasing the share capital by RPSA with this land; 4. Cancellation of the statutory documents issued in 2002 regarding the evaluation of assets (construction, equipment) by which RPSA contributed to Rompetrol Rafinare S.A. share capital increase 5. Cancellation of the statutory documents issued in 2003 regarding the contribution in kind made by DWS, RWS, RPSA to Rompetrol Rafinare S.A. share capital; 6. Cancellation of the statutory documents issued in 2001 regarding the share capital increase according to the privatization contract; Plus, Faber submitted a request for the revision of a decision by which the court closed a file being out of date/obsolete (when Court asked the plaintiff to do something and it doesn’t within 6 months /1 year). On April 28, 2021, Constanta Tribunal admitted the exception raised by Rompetrol Rafinare and decided that the revision filed by Faber is late.

58 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

28. LEGAL MATTERS (continued)

Litigation regarding CO2 emission allowances.

On 28 February 2011 Rompetrol Rafinare S.A. won the court case against The Romanian Government and The Ministry of Environment which required the Romanian authorities to allocate to Rompetrol Rafinare an additional number of 2,577,938 CO2 emission certificates for the entire period 2008 - 2012 (Decision 69/CA/2011). This first decision issued by the Constanta Court of Appeal was challenged by the Ministry of Environment and The Romanian Government, but the appeals were rejected by the High Court of Cassation and Justice on 30 October 2012 and the first court decision became final.

According to the current Romanian and European legislation, the certificates obtained for 2008 – 2012 period may be owned and used also for the next period of 2013 – 2020.

Considering that the Ministry of Environment and the Romanian Government did not fulfil the Court decision according to the deadline, Rompetrol Rafinare SA started a court claim against them, having as object damages in amount of EUR 36 million. – File no. 917/36/2013*.

The last hearing was on February 25, 2019 and a decision was released on March 19, 2019. The court admitted Rompetrol Rafinare S.A claim and found liable both the Romanian Government and Ministry of Environmental for damages in amount of EUR 31,806,598.74 in RON at the payment date for failure to observe the final Supreme Court decision issued in October 2012.

Taking in consideration that according with the decision the court awarded a lower amount than the one requested, a final appeal was formulated within the legal time limit. The defendants also submitted final appeals against the same decision of the Court of Appeal Constanta. The Supreme Court set the first hearing for November 11, 2021, but the Company submitted an application at the beginning of October to ask for an earlier hearing considering that already passed 7 years since the Supreme Court decision issued in the favor of the company. It is expected the Supreme Court decision on this topic.

On 17 June 2020, the Supreme Court issued the final decision according to which the appeals declared by Rompetrol Rafinare S.A. and the Ministry of Environment, Waters and Forests and the Government of Romania - General Secretariat of the Government against the decision issued by the Court of Appeal Constanta in 2019 were rejected. The favorable decision of the first court will be enforced for obtaining the amount granted.

On 17 December 2020 Rompetrol Rafinare received as a partial payment from the Environmental Ministry the amount of RON 30 million.

Litigation between Rompetrol Rafinare and Navodari City Hall

59 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

28. LEGAL MATTERS (continued)

At the request of the legal representative of Navodari City Hall, the Court set a new trial term for 7 May 2020. The next term in the case file was set for July 16, 2020, when the appeal filed by Rompetrol Rafinare was judged, the ruling being postponed until July 21, 2020. At that time, the Supreme Court admitted the appeal and completely change the solution of the first court, admitting the action filed by Rompetrol Rafinare SA. The Decision will be enforced for obtaining the amount granted. Also the Supreme Court admitted Rompetrol Rafinare S.A.’s request for clarifications and decided to complete the Decision with the clear obligation of City Hall of Navodari to pay back Rompetrol Rafinare S.A. the amounts paid by the Company. b) Because the decision issued by Navodari City Hall of rejection the administrative complaint as being lack of object is based on Navodari Local Council Decision no.435/21 December 2015, under which Rompetrol Rafinare has obtain the annulment of 73% of penalties, Rompetrol Rafinare submitted a second action for partial annulment of Navodari Local Council Decision no. 435/21 December 2015. This action was admitted by Constanta Tribunal. This solution has been appealed by Navodari Local Council on Constanta Court of Appeal, where the first hearing term was set on 16 January 2017, when the appeal was rejected. The solution is final. c) Rompetrol Rafinare also filed the request for suspension the enforceable effects of the imposing decision, pursuant to the Law 554/2004 and Government Ordinance 92/2003, file no.788/36/2015. The statement of defense was submitted by Navodari City Hall and the first hearing term was established for 22 February 2016. The court granted Rompetrol Rafinare claim and suspended the effects and the enforcement of the Tax Inspection Report and Tax Decisions issued by Navodari City on 19 November 2015. The solution was appealed by Navodari City Hall. On November 2, 2018, the case has been suspended. On January 10, 2020, by Decision 73/2020, the High Court of Cassation and Justice found the appeal filed by the Navodari City Hall outdated. The solution is final.

Litigations between Rompetrol Rafinare and National Company – Constanta Maritime Port Administration S.A.

In consideration of the violation by Compania Nationala Administratia Porturilor Maritime Constanta (National Company of Constanta Maritime Ports Administration) of the legal provisions regulating its activity, in the sense that it does not ensure the maintenance in operational parameters of the Midia port found under its administration, so as to ensure the safety of navigation, the preservation of at least the technical features designed for the port, the assurance of safe access and operation, the company initiated several legal remedies against it, as follows: a) Complaint against National Company "Administratia Porturilor Maritime" SA for violating the provisions of art. 9 of the Law no 21/1996 which caused to Rompetrol Rafinare SA damages consisting of USD 1.8 mil USD - dredging expenditures and 3.3 mil USD - commercial loss. The complaint leads to an investigation launched in April 2016 by the Competition Council. Competition Council is entitled to acknowledge the violation by Administraţia Porturilor Maritime of the provisions of art. 9 of Law no. 21/1996, to sanction the said company in accordance with the law and to render it liable to perform, subject to legal terms and conditions, the obligations resting upon it as administrator of port areas and supplier of goods and services specific to the exploitation of national maritime areas, in particular with respect to Midia Port. By Decision 21/2018, the Competition Council rejected the complaints formulated by Rompetrol Rafinare SA and Midia Marine Terminal SRL. Both companies challenged this decision at Bucharest Court of Appeal, first term being scheduled for May 13, 2019, in order to communicate to the parties the statement of defense issued by National Company "Administratia Porturilor Maritime" SA. Next term was established October 21, 2019, when the court dismissed the complaints filed by the plaintiffs. The solution was appealed by Rompetrol Rafinare SA and the first hearing was set by the High Court on April 12, 2022. b) Court claim against the Constanta Port Administration for Rompetrol Rafinare damages related to lower port drafts during January - May 2015 (0.8 mil USD) and for restitution of dredging expenses (USD 1.7 million). On 19 May 2017, the Court partially admitted the claim of the plaintiff Rompetrol Rafinare SA against the defendant Constanta Port Administration and obliged the defendant to pay to the plaintiff: • The amount of EUR 1.57 million, representing dredging expenditures paid by Rompetrol Rafinare SA, during the period 30 April 2015 - 11 May 2015; • The amount of RON 0.079 million representing legal costs. 60 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

28. LEGAL MATTERS (continued)

Both parties filed for appeal against the solution pronounced by first court. On 27 December 2017, Constanta Court of Appeal admitted the appeal filed by Constanta Port Administration, reject the appeal filed by Rompetrol Rafinare SA and changed the sentence pronounced by the first court, so all the claims of Rompetrol Rafinare against APMC have been rejected. Rompetrol Rafinare will submit the appeal within 30 days since the communication of the decision issued by Constanta Court of Appeal. The decision has been communicated and the recourse has been filled by Rompetrol Rafinare SA on 6 August 2018. The case is in filter proceedings, and the first hearing term will be established later. During the filter proceedings, National Company “Administratia Porturilor Maritime” SA has raised the exception of inadmissibility of our recourse, motivated by the fact that, according to art. 483 paragraph 2 of the Civil Procedure Code, the decisions regarding the civil navigation and port activity processes are exempted from the right of recourse. Rompetrol Rafinare SA has raised the exception of unconstitutionality regarding the art. 483 paragraph 2 of the Civil Procedure Code. From this reason, The High Court of Cassation and Justice has suspended the procedure until the Constitutional Court solves the exception submitted by Rompetrol Rafinare.

Procedure in which is involved Rompetrol Rafinare SA, Rominserv SRL, and employees of the two companies, following of a technical incident occurred in Petromidia refinery on August 22, 2016

On 22 August 2016 a technical incident occurred within the DAV plant. Following the event, two employees of a Group’ subsidiary Rominserv SRL suffered burns and two employees passed away.

Following the completion of the criminal prosecution, Rompetrol Rafinare S.A., Rominserv SRL and four employees were put on trial for: the non-observance of the legal labor health and safety measures, bodily harm by negligence, manslaughter and accidental pollution. At the same time Rompetrol Rafinare S.A. and Rominserv S.R.L has quality as civilly liable party.

The criminal file was finalized by the prosecutor and sent into court twice, on which occasion the judges of the preliminary chamber decided to send back the file to the Prosecutor's Office attached to the Constanta Court of Appeal due to the fact that the prosecutor indictment contain irregularities and therefore the object and frame of the legal proceeding cannot be established, found the relative nullity of the document.

The company was summoned to the prosecutor's office on June 2, 2020 in order to be informed the quality of suspect of the company in the file.

According with prosecutor third indictment, the following offenses were retained for ROMPETROL RAFINARE, ROMINSERV, STANCIU DANIEL, MARGINEAN ION and CARAMAN VASILE: a. the non-observance by negligence of the legal labor health and safety measures, as per art 349 alin.2 of Criminal code; b. bodily harm by negligence as per art. 196 alin. 1 and 4 of Criminal code; c. manslaughter as per art. 192 alin. 1,2 and 3 of Criminal code; d. accidental pollution, as per art. 98 alin.1 lit.b of EGO no 195/2005.

On June 24, 2020 the company received the prosecutor indictment from the Constanta Court. Taking in consideration that the court has been notified with a new indictment, for the third time the preliminary chamber procedure is to be carried out. On September 17, 2020 the judge of preliminary chamber rejected as unfounded the claims and exceptions made by all defendants- i.e. RR, RIS and individuals involved- and noted the legality of court investment with the indictment no 586/P/ 2016 of the Prosecutor's office attached to the Constanta Court of Appeal, of the administration of evidences and of the performance of criminal investigation and ordered the commencing of the trial. The court decision was appealed, the appeals were rejected, and the next hearing scheduled by Constanta court (Judecatoria) is on November 2nd, 2021.

Relating Rompetrol Rafinare S.A. employees, Andrei Felicia and Oancea Cornel, the file has been disposed.

On the other hand, it was admitted the request filed by Rominserv for the plea of unconstitutionality of certain provisions to be settled further by the Constitutional Court. The respective provisions concern the possibility to rectify the document instituting court proceedings during the preliminary chamber procedure.

61 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

28. LEGAL MATTERS (continued)

As at current date the maximum exposure, for each company, is in amount of USD 1.5 million (RON 6 million).

Regarding this legal matter Rompetrol Rafinare booked a provision in amount of RON 1.7 million.

Litigation on Tax Assessments received by Rompetrol Rafinare S.A. in 2017

In December 2017, the National Agency for Tax Administration finalized the tax inspection in Rompetrol Rafinare (covering the period 2011 - 2015) for: VAT fiscal group (all entities from fiscal group were under fiscal control), income tax, withholding tax and excise.

Thorough the Assessment Decision (received in January 2018), there were imposed the following additional taxes: RON 26.1 million representing VAT (of which RON 13.1 million related to VAT of Rompetrol Rafinare SA the rest belonging to the VAT group companies), RON 6.5 million representing Rompetrol Rafinare SA withholding tax and decrease of Rafinare’s fiscal loss with RON 144.4 million. The related penalties assessed are in amount of RON 16.3 million for all VAT group companies. The principal additional taxes and related penalties were partially paid and partially compensated with receivable taxes and the remaining, the difference being paid in cash.

The tax assessment on VAT group and Rompetrol Rafinare S.A. was challenged on February 26, 2018. On January 23, 2019 the fiscal authority D.G.S.C. – A.N.A.F. issued the settling decision upon Company’s administrative appeal by which the fiscal authority decided the followings: i. out of RON 20 million representing VAT (out of which RON 12.8 million related to VAT of Rompetrol Rafinare SA) the fiscal authority rejects the appeal for the amount of RON 11.6 million (RON 11.07 million related to Rompetrol Rafinare SA) and cancels the imposing decision for the amount of RON 8.4 million (RON 1.75 million related to Rompetrol Rafinare SA); ii. rejects the appeal for the amount of RON 6.5 million representing Rompetrol Rafinare SA withholding tax and the related accessories in amount of 0.2 million RON; iii. out of RON 16.3 million representing penalties related to VAT (out of which RON 12 million related to Rompetrol Rafinare SA) the fiscal authority rejects the appeal for the amount of RON 11.05 million (RON 10.6 million related to Rompetrol Rafinare SA) and cancels the imposing decision for the amount of RON 5.3 million (RON 1.4 million related to Rompetrol Rafinare SA); iv. rejects the appeal against the decrease of The Company’s fiscal loss with the amount of RON 140 million.

The Company submitted to Constanta Court of Appeal a claim by which it challenged the amounts rejected by ANAF - DGSC in the Decision regarding the Company’s administrative appeal.

The amounts for which ANAF - DGSC annulled the Decision and ordered a re-verification are not subject of the court claim.

The claim submitted by Rompetrol Rafinare S.A. was registered on 25 July 2019 at the Constanta Court of Appeal, forming Case file no. 393/36/2019, the Court set the first hearing for November 13, 2019. On December 11, 2019 the Court approved Rompetrol Rafinare S.A.’s request to carry out a financial – accounting expertise in the Case file and set the next term for January 15, 2020 when the Court will nominate three experts to perform the expertise and will set the term for the Expertise Report to be filled. On 15 January 2020, the Court nominated the experts and set the next term for 12 February 2020 for the expertise to be initiated. The Court set the next term for March 11, 2020 for the Expertise Report to be issued.

The file was suspended, based on art. 42 point 6 of the Decree of the President of Romania no. 195 / 16.03.2020 regarding the establishment of the state of emergency on the territory of Romania and of the Decision of the Board of Management no. 4/18.03.2020 of the Court of Appeal Constanta, without performing any procedural act. Following the submission of the Expertise Report, ANAF submitted objections, Constanta Court of Appeal establishing a trial term on March 24, 2021 in order to discuss them. On April 28, 2021, Constanta Court of Appeal rejected Rompetrol Rafinare claim as ungrounded. The Company will file an appeal in 15 days after the motivated Decision will be communicated.

Regarding this legal matter Rompetrol Rafinare booked a provision in amount of RON 13.65 million. 62 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

28. LEGAL MATTERS (continued)

Criminal case concerning Petromidia Refinery incident on July 2nd 2021

On July 2, 2021 there was an explosion followed by a fire at Petromidia refinery, Diesel Hydrotreatment Unit (in Romanian “instalatia Hidrofinare Petrol Motorina” hereinafter HPM plant). As a result of the incident, 1 (one) employee of the company died and 4 (four) employees was hospitalized in Constanta. Out of four, two employees were transferred at an Emergency Clinical Hospital in Bucharest and then were transferred for medical treatment to a specialized clinic abroad. Despite all efforts of the medical staff, the two colleagues who were transferred to a specialized medical unit abroad died. The criminal investigations are carried out by the Prosecutor's Office attached to the Constanta Tribunal; a technical expertise is being carried out by INCD INSEMEX Petrosani, at the request of the criminal investigation bodies; in the criminal case the company has the quality of a civilly responsible party; hearings of the employees involved in the event are held. At the same time, the collective work accident is being investigated by the Territorial Labor Inspectorate according to the incident legislation.

29. COMMITMENTS

Environmental risks and obligation

The Company’s business activities are subject to constantly changing local, national and European regulations relating to the environment and industrial activity, that entail meeting increasingly complex and restrictive requirements. In this regard, these activities can involve a financial resource in order to comply with the incidental restrictive legislation and regulation relating to the Company’s activities.

Although Rompetrol Rafinare has provided for known environmental obligations that are probable and reasonably estimable, it is possible that the Company will continue to incur additional liabilities. The amount of additional future costs is not fully determinable due to factors such as unknown timing and extent of the corrective actions that may be required, if the case.

Rompetrol Rafinare’s financial statements account for provisions relating to the costs of environmental obligations that can be reasonably estimated in a reliable manner.

During 2019 and 2020, the Company advanced with the greening process of Vega lagoons and some major phases have been finalized while the foreseen completion date of the project is 30 June 2022. Progress and status of the project is reported on a regular basis to the environmental competent authorities. A revised environmental agreement for the project was issued in January 2021 out of which there are no material additional obligations for the Company.

During 2020, Rompetrol Rafinare has carried out the due diligence procedures in accordance with Law 74/2019 (for contaminated site) in relation to the storage area of the biological waste resulted from IAZ no.1 ("Vadu cassettes"). The process is ongoing and performed in accordance with the requirements of the competent environmental authorities ("EPA Constanta"). During 2021, a detailed investigation report was provided by the Company to the environmental authorities. Also, a decision which classify the area as a contaminated site was communicated by the competent authority for environmental protection and a feasibility study was requested.

As of 30 June 2021, the Company has recognized a provision for restoration costs related to Vega Refinery, see Note 17.

63 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

30. FINANCIAL AND RISK MANAGEMENT INSTRUMENTS

A. CAPITAL RISK

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of bank debt and shareholder loans (see Notes 14 and 15), cash and cash equivalents and equity attributable to equity holders of the Company, comprising issued capital, reserves and retained earnings as disclosed in the “Statement of Changes in the Shareholders’ Equity”.

B. GEARING RATIO

The debt – to - equity ratio at the end of the year is as follows:

June 30, 2021 December 31, 2020

Debt (excluding shareholder and related parties loans) 900,535,382 780,663,365 Cash and cash equivalents (158,308,076) (365,595,493)

Net Borrowings 742,227,306 415,067,872

Equity (including shareholder and related parties loans) 1,073,256,816 1,384,556,175

Gearing ratio 69.2% 30.0%

C. FINANCIAL INSTRUMENTS

June 30, 2021 December 31, 2020 Financial assets Trade receivables and other receivables 1,361,720,799 950,339,667 Derivatives 188,200 - Cash and bank accounts 158,308,076 365,595,493

TOTAL FINANCIAL ASSETS 1,520,217,075 1,315,935,160

Financial liabilities June 30, 2021 December 31, 2020 Short term borrowings from shareholders and related parties - 48,949,030 Derivatives 11,401,673 617,651 Commercial liabilities and other liabilities 4,863,366,593 4,002,009,686 Short term loans 304,375,397 209,904,041 Long term borrowings from banks 596,159,985 570,759,324 Lease debts 59,667,782 59,524,287

TOTAL FINANCIAL LIABILITIES 5,834,971,430 4,891,764,019

64 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

30. FINANCIAL AND RISK MANAGEMENT INSTRUMENTS (continued)

Trade and other receivables are at net recoverable value and the following categories are not considered as financial assets: • VAT to be recovered • Profit tax to be recovered • Other taxes to be recovered

Similarly, for trade and other payables the following are not considered as financial liabilities: • Excises taxes • Special fund for oil products (FSPP); • VAT payable • Profit tax payable • Salary taxes payable • Other taxes • Deferred revenues

The estimated fair values of these instruments approximate their carrying amounts.

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values: • Cash and short-term deposits, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments; • Fair value of unquoted available-for-sale financial assets is estimated using appropriate valuation techniques. • The Company enters into derivative financial instruments with various counterparties. As at 30 June 2021, the marked to market value of derivative position is for financial instruments recognised at fair value.

65 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

30. FINANCIAL AND RISK MANAGEMENT INSTRUMENTS (continued)

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: • Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities • Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are based on observable market data, either directly or indirectly. • Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

30 June 2021 Level 1 Level 2 Level 3

Financial assets Trade receivables and other receivables 1,361,720,799 - 1,361,720,799 - Derivatives 188,200 - 188,200 - Cash and bank accounts 158,308,076 158,308,076 - - TOTAL FINANCIAL ASSETS 1,520,217,075 158,308,076 1,361,908,999 -

Financial liabilities Derivatives 11,401,673 - 11,401,673 - Commercial liabilities and other liabilities 4,863,366,593 - 4,863,366,593 - Short term loans 304,375,397 - 304,375,397 - Long term borrowings from banks 596,159,985 - 596,159,985 - Lease debts 59,667,782 - 59,667,782 - TOTAL FINANCIAL LIABILITIES 5,834,971,430 - 5,834,971,430 -

31 December 2020 Level 1 Level 2 Level 3

Financial assets Trade receivables and other receivables 950,339,667 - 950,339,667 - Cash and bank accounts 365,595,493 365,595,493 - - TOTAL FINANCIAL ASSETS 1,315,935,160 365,595,493 950,339,667 -

Financial liabilities Short term borrowings from shareholders and related parties 48,949,030 - 48,949,030 - Derivatives 617,651 - 617,651 - Commercial liabilities and other liabilities 4,002,009,686 - 4,002,009,686 - Short term loans 209,904,041 - 209,904,041 - Long term borrowings from banks 570,759,324 - 570,759,324 - Lease debts 59,524,287 - 59,524,287 - TOTAL FINANCIAL LIABILITIES 4,891,764,019 - 4,891,764,019 -

At 30 June 2021, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into and out of Level 3 fair value measurements

66 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

30. FINANCIAL AND RISK MANAGEMENT INSTRUMENTS (continued)

D. DERIVATIVE FINANCIAL INSTRUMENTS

The Company uses different commodity derivatives as a part of price risk management in trading of crude oil and products. Generally the instruments are allocated to individual instruments.

It also, the Company performs hedging transactions regarding the risk of increasing USD interest rates.

Derivative financial instruments are initially measured at fair value on the contract date, and are re-measured to fair value at subsequent reporting dates. Changes in the fair value of derivative financial instruments are recognized in profit or loss as they arise.

E. MARKET RISK

The Company’s activities expose it to a variety of risks including the effects of: changes in the international quotations for crude oil and petroleum products, foreign currency exchange rates and interest rates. The Company’s overall risk management main objective is to minimize the potential adverse effects on the financial performance of the Company .

F. FOREIGN CURRENCY RISK MANAGEMENT

For the purpose of preparing these Financial Statements, in accordance with the requirements of the Romanian law, the Company’s functional currency is the Romanian leu (RON).

Crude oil imports, loans and a significant part of petroleum products are all denominated principally in US Dollars. Therefore, in respect of liabilities the Company is exposed to the risk of US dollar appreciation to the detriment of local currency, while in respect of foreign currency receivables, exposure arises in the context of depreciation of US dollar currency. Moreover, certain assets and liabilities are denominated in foreign currencies, which are retranslated at the prevailing exchange rate at each balance sheet date. The resulting differences are charged or credited to the income statement but do not affect cash flows. Company Treasury is responsible for handling the Company foreign currency transactions.

G. FOREIGN CURRENCY SENSITIVITY ANALYSIS

The Company is mainly exposed to the USD and EUR fluctuation risk.

The following table details the Company’s sensitivity to a 5% increase and decrease in the RON exchange rate against the relevant foreign currencies. The sensitivity analysis includes only the foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in the exchange rates. A positive number below indicates an increase in profit and other equity here generated by a positive exchange rate RON/USD of 5% and generated by a negative exchange rate RON/EUR of 5%. For a 5% weakening of the exchange rate RON against USD and an increase of the exchange rate RON against EUR there would be a negative impact in the profit, with the same value.

USD EUR June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 RON 5% (183,786,359) (155,214,504) 6,767,707 9,902,374 -5% 183,786,359 155,214,504 (6,767,707) (9,902,374)

67 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

30. FINANCIAL AND RISK MANAGEMENT INSTRUMENTS (continued)

H. INTEREST RATE RISK MANAGEMENT

Interest rate price risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates relative to the interest rate that applies to the financial instrument. Interest rate cash flow risk is the risk that the interest cost will fluctuate over time. The Company has long-term debt and short-term debt that incur interest at fixed and variable interest rates that exposes the Company to both fair value and cash flow risk. Details of the interest rate terms, which apply to the Company's borrowings, are provided in Note 14 and 15.

The sensitivity analyses below have been determined based on the financial instruments at the reporting date. For floating rate liabilities, the analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole year.

If the interest rates had varied by + / - 50 points and all the other variables had remained constant, the net result of the Company as at 30 June 2021 would increase / decrease by RON 23.9 million (2020: increase / decrease by RON 21.2 million).

I. OIL PRODUCTS and RAW MATERIAL PRICE RISK

The Company is affected by the volatility of crude oil, oil product and refinery margin prices.

The operating activities of the Company require ongoing purchase of crude oil to be used in its production as well as for the supply of petroleum products to its customers. Due to significantly increased volatility of crude oil prices, the management developed a hedge policy which was presented to the Company’s Board of Directors and was approved in most significant aspects in 2010 and with some further amendments in February 2011. Following this approval, the Company started on January 2011 to hedge commodities held by Rompetrol Rafinare.

According to the hedge policy, on the commodity side, the flat price risk for priced inventories above a certain threshold (called base operating stock) is hedged using future contracts traded on ICE Exchange and some OTC instruments for the secondary risks. The base operating stock is the equivalent of priced stocks that are held at any moment in time in the Company, hence price fluctuations will not affect the cash-flow. In 2012, the Company started a few transactions of refinery margin hedge.

Risk management activities are separated into physical transactions (purchase of raw materials and sales to third parties or Intercompany) and paper trades (for economic hedging purposes). Each physical transaction is covered through a related futures position according to the exposure parameters set by management (i.e. based on physical quantities sold or purchased). The Company sells or buys the equivalent number of future contracts. This financial trade is done only to hedge the risk of the price risk and not to gain from the trading of these instruments.

J. CREDIT RISK

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or purchase contracts, which leads to a financial loss. The Company is exposed to credit risk from its operating activities primarily for trade receivables and from its financing activities including bank deposits, foreign exchange transactions and other financial instruments.

Trade receivables

Outstanding customer receivables are regularly monitored. The requirement for impairment is analyzed on a regular basis, being undertaken on an individual basis as well as collectively on the basis of aging.

Financial instruments and bank deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury in accordance with the Company’s policy. 68 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE S.A. NOTES TO THE INTERIM FINANCIAL STATEMENTS for financial year ended on 30 June 2021 (all amounts expressed in Lei (“RON”), unless otherwise specified)

31. SUBSEQUENT EVENTS

On July 2, 2021 there was an explosion followed by a fire at Petromidia refinery, Diesel Hydrotreater Unit (in Romanian “instalatia Hidrofinare Petrol Motorina” hereinafter HPM plant), which affected both HPM unit and Kerosene Hydrotreater (“HPR’’) and Catalytic Reformer (“RC”) units. Pipes belonging to the Naphta Hydrotreater and Saturated Gases (“FG”) units were also affected whose route was in the vicinity of the areas affected by the fire. As a result of the incident, 1 (one) employee of the company died and 4 (four) employees was hospitalized in Constanta. Out of four, two employees were transferred at an Emergency Clinical Hospital in Bucharest and then were transferred for medical treatment to a specialized clinic abroad. Despite all efforts of the medical staff, the two colleagues who were transferred to a specialized medical unit abroad died. The competent authorities were informed regarding the accident, the consequences and the situation of the employees involved, injured and dead. The criminal investigations are carried out by the Prosecutor's Office attached to the Constanta Tribunal; a technical expertise is being carried out by INCD INSEMEX Petrosani, at the request of the criminal investigation bodies; in the criminal case the company has the quality of a civilly responsible party; hearings of the employees involved in the event are held. At the same time, the collective work accident is being investigated by the Territorial Labor Inspectorate according to the incident legislation. As a consequence of this event, starting with July 02, 2021 the entire Petromidia Refinery production has been temporarily stopped, until the facilities damaged by this incident will be in function again. The company is currently making its own assessments in order to estimate the level of the caused damages by the accident, depending on which it will be estimated the period necessary to carry out the necessary repairs and verifications in order to put the refinery’s units back into operation safely, following to adequately reflect the financial impact as soon as it is known. The Net book value at June 30, 2021 of the affected installations by the incident are: HPM (RON 28.5 million); HPR (RON 27.5 million); RC (RON 63.5 million); HB (RON 43.1 million); FG (RON 12.7 million).

Rompetrol Rafinare S.A credit facility in amount of EURO 30 million granted by Banca Transilvania was extended until January 31, 2022.

Rompetrol Rafinare S.A credit facility in amount of EURO 27,96 million granted by Banca Transilvania was extended until January 31, 2022.

YEDIL UTEKOV RAMONA GEORGIANA GALATEANU Chairman of the Board of Directors Financial Manager

FELIX CRUDU-TESLOVEANU Prepared by, Alexandru Cornel Anton General Manager Chief Accountant

69 English translation is for information purposes only. Romanian language text is the official text for submission ROMPETROL RAFINARE SA

UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ENDORSED BY THE EUROPEAN UNION (EU)

30 JUNE 2021 ROMPETROL RAFINARE SA CONSOLIDATED FINANCIAL STATEMENTS Prepared in accordance with International Financial Reporting Standards as endorsed by the European Union (EU) as at 30 June 2021

CONTENTS PAGE

Consolidated Statement of Financial Position 3

Consolidated Income Statement 4

Consolidated Statement of Other Comprehensive Income 5

Consolidated Statement of Cash Flows 6

Consolidated Statement of Changes in Equity 7 - 8

Notes to Consolidated Financial Statements 9 - 88

ROMPETROL RAFINARE SA CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

December 31, December 31, Notes June 30, 2021 June 30, 2021 2020 2020 USD USD RON RON (supplementary info – see Note 2(e)) Intangible assets 3 10,753,854 10,970,907 44,547,840 45,446,982 Goodwill 4 82,871,706 82,871,706 343,296,042 343,296,042 Property, plant and equipment 5 1,114,363,286 1,168,350,972 4,616,249,901 4,839,893,893 Right of use assets 7 79,181,128 76,543,589 328,007,823 317,081,820 Available for sale investments 8 18,623 18,583 77,146 76,980 Long-term receivable 3,715,743 4,143,035 15,392,465 17,162,522 Total non current assets 1,290,904,340 1,342,898,792 5,347,571,217 5,562,958,239 Inventories, net 9 323,480,911 202,167,399 1,340,019,673 837,478,453 Trade and other receivables 10 596,069,800 553,537,032 2,469,219,147 2,293,027,156 Derivative financial instruments 32.5 1,028,190 209,030 4,259,277 865,907 Cash and cash equivalents 11 77,674,063 100,655,956 321,764,806 416,967,298

Total current assets 998,252,964 856,569,417 4,135,262,903 3,548,338,814

TOTAL ASSETS 2,289,157,304 2,199,468,209 9,482,834,120 9,111,297,053 Share capital 12 1,463,323,897 1,463,323,897 6,061,819,243 6,061,819,243 Share premium 12 74,050,518 74,050,518 306,754,271 306,754,271 Revaluation reserve, net 12 122,195,243 125,410,659 506,193,794 519,513,655 Other reserves 12 (16,878,041) (15,503,101) (69,917,285) (64,221,596) Other reserves - Hybrid loan 12 1,059,285,994 1,059,285,995 4,388,092,229 4,388,092,233 Effect of transfers with equity holders 12 (596,832,659) (596,832,659) (2,472,379,290) (2,472,379,290) Accumulated losses (1,702,534,440) (1,506,582,395) (7,052,748,918) (6,241,017,571) Current year result (21,404,393) (199,779,921) (88,667,698) (827,588,323) Equity attributable to equity holders of the 381,206,119 403,372,993 1,579,146,346 1,670,972,622 parent Non-Controlling interest 16,503,953 17,924,067 68,367,620 74,250,445

Total equity 397,710,072 421,297,060 1,647,513,966 1,745,223,067 Long-term borrowings from banks 13 240,000,000 240,000,000 994,200,000 994,200,000 Obligations under lease agreements 14 82,829,888 81,816,635 343,122,811 338,925,410 Deferred tax liabilities 15 3,727,348 4,339,808 15,440,539 17,977,655 Provisions 19 79,332,744 79,332,744 328,635,892 328,635,892 Other non-current liabilities 183,475 356,061 760,045 1,474,983 Total non-current liabilities 406,073,455 405,845,248 1,682,159,287 1,681,213,940 Trade and other payables 16 1,362,920,021 1,267,733,760 5,645,896,183 5,251,587,103 Contract liabilities 17 36,299,218 30,912,849 150,369,510 128,056,477 Derivative financial instruments 32.5 2,752,364 375,916 11,401,668 1,557,232 Obligations under lease agreements 14 4,439,977 4,003,884 18,392,605 16,586,089 Short-term borrowings from shareholders and 18 - 12,342,166 - 51,127,423 related parties Short-term borrowings from banks 18 73,496,047 52,949,083 304,457,375 219,341,575 Profit tax payable 5,466,150 4,008,243 22,643,526 16,604,147 Total current liabilities 1,485,373,777 1,372,325,901 6,153,160,867 5,684,860,046 TOTAL LIABILITIES AND SHAREHOLDERS' 2,289,157,304 2,199,468,209 9,482,834,120 9,111,297,053 EQUITY

YEDIL UTEKOV RAMONA-GEORGIANA GALATEANU CHAIRMAN of the BOARD of DIRECTORS FINANCE MANAGER

FELIX CRUDU-TESLOVEANU GENERAL MANAGER

The accompanying notes from 1 to 33 are an integral part of these consolidated financial statements. English translation is for information purposes only. Romanian language text is the official text for submission. 3 ROMPETROL RAFINARE SA CONSOLIDATED INCOME STATEMENT for the period ended 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

Notes June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 USD USD RON RON (supplementary info – see Note 2(e)) Revenues from contract with 20 1,645,165,714 1,055,899,842 6,815,098,970 4,374,065,095 customers Cost of sales 21 (1,532,650,870) (1,048,962,329) (6,349,006,229) (4,345,326,449) Gross profit 112,514,844 6,937,513 466,092,741 28,738,646 Selling, general and administrative 22 (104,025,941) (108,358,457) (430,927,461) (448,874,907) expenses, including logistic costs Other operating income 23 5,622,342 43,910,759 23,290,552 181,900,319 Other operating expenses 23 (15,305,499) (42,565,687) (63,403,030) (176,328,358) Operating profit/(loss) (1,194,254) (100,075,872) (4,947,198) (414,564,300) Finance cost 24 (28,208,883) (30,048,350) (116,855,298) (124,475,290) Finance income 24 8,747,693 6,672,157 36,237,318 27,639,410 Foreign exchange loss, net 24 577,696 (3,114,429) 2,393,107 (12,901,523) (Loss)/Profit before income tax (20,077,748) (126,566,494) (83,172,071) (524,301,703) Income tax 25 (2,746,759) 95,383 (11,378,449) 395,124 (Loss)/Profit for the period (22,824,507) (126,471,111) (94,550,520) (523,906,579) Attributable to: Equity holders of the parent (21,404,393) (126,054,266) (88,667,698) (522,179,797) Non-Controlling interests (1,420,114) (416,845) (5,882,822) (1,726,782) Earnings per share (US cents/share) Basic 28 (0.0485) (0.2858) (0.2009) (1.1839)

YEDIL UTEKOV RAMONA-GEORGIANA GALATEANU CHAIRMAN of the BOARD of DIRECTORS FINANCE MANAGER

FELIX CRUDU-TESLOVEANU GENERAL MANAGER

The accompanying notes from 1 to 33 are an integral part of these consolidated financial statements. English translation is for information purposes only. Romanian language text is the official text for submission. 4 ROMPETROL RAFINARE SA CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME for the period ended 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) Net Gain/ (Loss) for the period (22,824,507) (126,471,111) (94,550,520) (523,906,579)

Other comprehensive income Other comprehensive income to be reclassified income statement in subsequent periods (net of tax): Hedge reserve (1,374,941) 6,010,000 (5,695,694) 24,896,425

Net other comprehensive income to be reclassified to income/(loss) statement in (1,374,941) 6,010,000 (5,695,694) 24,896,425 subsequent periods

Total other comprehensive income/ (loss) (1,374,941) 6,010,000 (5,695,694) 24,896,425 for the period, net of tax Total comprehensive result for the period, (24,199,448) (120,461,111) (100,246,214) (499,010,154) net of tax Attributable to: Equity holders of the parent (22,779,334) (120,044,266) (94,363,392) (497,283,372) Non-Controlling interests (1,420,114) (416,845) (5,882,822) (1,726,782)

Total comprehensive result for the period (24,199,448) (120,461,111) (100,246,214) (499,010,154)

YEDIL UTEKOV RAMONA-GEORGIANA GALATEANU CHAIRMAN of the BOARD of DIRECTORS FINANCE MANAGER

FELIX CRUDU-TESLOVEANU GENERAL MANAGER

The accompanying notes from 1 to 33 are an integral part of these consolidated financial statements. English translation is for information purposes only. Romanian language text is the official text for submission. 5 ROMPETROL RAFINARE SA CONSOLIDATED STATEMENT OF CASH FLOWS for the period ended 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

June 30, June 30, June 30, June 30, Notes 2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) Result before income tax (20,077,748) (126,566,494) (83,172,071) (524,301,703) Adjustments for: Depreciation and impairment of property, plant and 21, 22 60,915,544 55,458,908 252,342,641 229,738,524 equipment and intangibles assets Depreciation and amortization of right-of-use assets 7 3,126,895 2,609,116 12,953,162 10,808,265 Provisions for receivables and inventories (incl write-off) 23 3,598,325 (3,787,501) 14,906,061 (15,689,723) Impairment for property, plant and equipment (incl write- 23 - 8,126 - 33,662 off) Late payment interest 24 707,626 8,038 2,931,341 33,297 Other financial income 24 (1,655,240) (1,152,731) (6,856,832) (4,775,188) Unwinding of discount leasing 24 2,669,087 2,223,931 11,056,693 9,212,634 Interest income 24 (7,092,453) (5,519,426) (29,380,486) (22,864,222) Interest expense and bank charges 17,292,439 26,157,319 71,633,929 108,356,694 Gain on sale or disposal of property, plant and equipment 23 (245,736) (93,927) (1,017,961) (389,093) Unrealised foreign exchange (gain)/loss (3,146,303) (726,793) (13,033,560) (3,010,740) Cash from operations before working capital changes 56,092,436 (51,381,434) 232,362,917 (212,847,593)

Net working capital changes: Receivables and prepayments (32,959,440) 51,397,182 (136,534,478) 212,912,827 Inventories (126,105,876) 87,503,535 (522,393,591) 362,483,394 Trade and other payables and contract liabilities (9,405,030) 49,200,906 (38,960,339) 203,814,757 Change in working capital (168,470,346) 188,101,623 (697,888,408) 779,210,978

Net cash provided by/(used in) operating activities (112,377,910) 136,720,189 (465,525,491) 566,363,385

Cash flows from investing activities Purchase of property, plant and equipment (6,940,469) (100,619,132) (28,750,895) (416,814,756) Purchase of intangible assets (1,032,416) (895,886) (4,276,783) (3,711,208) Proceeds from sale of property, plant and equipment 1,434,984 2,793,082 5,944,421 11,570,342 Net cash used in investing activities (6,537,901) (98,721,936) (27,083,257) (408,955,622)

Cash flows from financing activities Cash pooling movement 103,663,568 55,182,726 429,426,331 228,594,445 Long - term loans received from banks - 8,675,108 - 35,936,635 Long - term loans repaid to banks - (63,756,436) - (264,111,036) Short - term loans (repaid to) / received from related (10,655,710) (10,733,359) (44,141,279) (44,462,940) parties Short - term loans (repaid to) / received from banks, net 20,577,577 (2,523,323) 85,242,613 (10,452,866) Lease repayments (5,561,876) (4,351,015) (23,040,071) (18,024,080) Interest and bank charges paid, net (12,089,641) (22,113,247) (50,081,338) (91,604,126) Net cash from/ (used) in financing activities 95,933,918 (39,619,546) 397,406,256 (164,123,968)

Increase / (Decrease) in cash and cash equivalents (22,981,893) (1,621,293) (95,202,492) (6,716,205)

Cash and cash equivalents at the beginning of period 100,655,956 13,196,424 416,967,298 54,666,185

Cash and cash equivalents at the end of the period 77,674,063 11,575,131 321,764,806 47,949,980

YEDIL UTEKOV RAMONA-GEORGIANA GALATEANU CHAIRMAN of the BOARD of DIRECTORS FINANCE MANAGER

FELIX CRUDU-TESLOVEANU GENERAL MANAGER

The accompanying notes from 1 to 33 are an integral part of these consolidated financial statements. English translation is for information purposes only. Romanian language text is the official text for submission. 6 ROMPETROL RAFINARE SA CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

Amount in USD

Deferred Equity income tax Effect of attributable Non- Share Share Accumulated Revaluation related to transfers Other Total to equity Controlling capital premium losses reserves revaluation, with equity reserves equity holders of interest recognised holders the parent in equity 31 December 2019 1,463,323,897 74,050,518 (1,514,772,382) 155,307,411 (25,118,634) (596,832,659) 1,046,837,175 602,795,326 16,731,538 619,526,864 Net loss for 2020 - - (126,054,266) - - - - (126,054,266) (416,845) (126,471,111) Hedging reserves ------6,010,000 6,010,000 - 6,010,000 Total other comprehensive income ------6,010,000 6,010,000 - 6,010,000 Total comprehensive income - - (126,054,266) - - - 6,010,000 (120,044,266) (416,845) (120,461,111) Effect of applying IFRS 16 - - (56,048) - - - - (56,048) - (56,048) Transfer of realised revaluation reserve to - - 3,898,888 (3,898,888) ------Retained Earnings Deferred tax related to realised revaluation - - - - 563,929 - - 563,929 - 563,929 reserve transferred to Retained Earnings

30 June 2020 1,463,323,897 74,050,518 (1,636,983,808) 151,408,523 (24,554,705) (596,832,659) 1,052,847,175 483,258,941 16,314,693 499,573,634

31 December 2020 1,463,323,897 74,050,518 (1,706,362,316) 149,619,175 (24,208,516) (596,832,659) 1,043,782,894 403,372,993 17,924,067 421,297,060 Net loss for 2021 - - (21,404,393) - - - - (21,404,393) (1,420,114) (22,824,507) Hedging reserves ------(1,374,941) (1,374,941) - (1,374,941) Total other comprehensive income ------(1,374,941) (1,374,941) - (1,374,941) Total comprehensive income - - (21,404,393) - - - (1,374,941) (22,779,334) (1,420,114) (24,199,448) Transfer of realised revaluation reserve to - - 3,827,876 (3,827,876) ------Retained Earnings Deferred tax related to realised revaluation - - - - 612,460 - - 612,460 - 612,460 reserve transferred to Retained Earnings

30 June 2021 1,463,323,897 74,050,518 (1,723,938,833) 145,791,299 (23,596,056) (596,832,659) 1,042,407,953 381,206,119 16,503,953 397,710,072

YEDIL UTEKOV RAMONA-GEORGIANA GALATEANU CHAIRMAN of the BOARD of DIRECTORS FINANCE MANAGER

FELIX CRUDU-TESLOVEANU GENERAL MANAGER

The accompanying notes from 1 to 33 are an integral part of these consolidated financial statements. English translation is for information purposes only. Romanian language text is the official text for submission. 7 ROMPETROL RAFINARE SA CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the period ended 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

Amount in RON (supplementary info – see Note 2(e)) Deferred income Equity tax related to Effect of attributable Non- Share Share Accumulated Revaluation Other Total revaluation, transfers with to equity Controlling capital premium losses reserves reserves equity recognised in equity holders holders of interest equity the parent 31 December 2019 6,061,819,243 306,754,271 (6,274,944,592) 643,360,950 (104,053,941) (2,472,379,290) 4,336,522,997 2,497,079,638 69,310,396 2,566,390,034 Net loss for 2020 - - (522,179,797) - - - - (522,179,797) (1,726,782) (523,906,579) Hedging reserves ------24,896,425 24,896,425 - 24,896,425 Total other comprehensive ------24,896,425 24,896,425 - 24,896,425 income Total comprehensive income - - (522,179,797) - - - 24,896,425 (497,283,372) (1,726,782) (499,010,154) Effect of applying IFRS 16 - - (232,179) - - - - (232,179) - (232,179) Transfer of realised revaluation - - 16,151,144 (16,151,144) ------reserve to Retained Earnings Deferred tax related to realised revaluation reserve transferred - - - - 2,336,076 - - 2,336,076 - 2,336,076 to Retained Earnings 30 June 2020 6,061,819,243 306,754,271 (6,781,205,424) 627,209,806 (101,717,865) (2,472,379,290) 4,361,419,422 2,001,900,163 67,583,614 2,069,483,777

31 December 2020 6,061,819,243 306,754,271 (7,068,605,894) 619,797,432 (100,283,777) (2,472,379,290) 4,323,870,638 1,670,972,623 74,250,442 1,745,223,065 Net loss for 2021 - - (88,667,698) - - - - (88,667,698) (5,882,822) (94,550,520) Hedging reserves ------(5,695,694) (5,695,694) - (5,695,694) Total other comprehensive ------(5,695,694) (5,695,694) - (5,695,694) income Total comprehensive income - - (88,667,698) - - - (5,695,694) (94,363,392) (5,882,822) (100,246,214) Transfer of realised revaluation - - 15,856,976 (15,856,976) ------reserve to Retained Earnings Deferred tax related to realised revaluation reserve transferred - - - - 2,537,115 - - 2,537,115 - 2,537,115 to Retained Earnings 30 June 2021 6,061,819,243 306,754,271 (7,141,416,616) 603,940,456 (97,746,662) (2,472,379,290) 4,318,174,944 1,579,146,346 68,367,620 1,647,513,966

YEDIL UTEKOV RAMONA-GEORGIANA GALATEANU CHAIRMAN of the BOARD of DIRECTORS FINANCE MANAGER

FELIX CRUDU-TESLOVEANU GENERAL MANAGER

The accompanying notes from 1 to 33 are an integral part of these consolidated financial statements. English translation is for information purposes only. Romanian language text is the official text for submission. 8 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

1. GENERAL

Rompetrol Rafinare SA (hereinafter referred to as “the Parent Company” or “the Company” or ‘‘the Parent’’ or ‘‘RRC’’) is a company incorporated under Romanian law. The Parent Company operates Petromidia and Vega refineries. Petromidia refinery, located on the Black Sea coast, processes imported crude oil and produces E.U. standard motor fuels, other petroleum products and certain petrochemicals. Petromidia refinery was designed and built during 1975 - 1977 and was further modernized in the early 1990’s and from 2005 to 2012.

Rompetrol Rafinare SA and its subsidiaries (hereinafter referred to as “the Group”) are involved in refining of oil, production of petrochemicals and downstream activities, and have all production facilities located in Romania (see Note 8). The number of employees of the Group at the end of June 2021 and December 2020 was 1,846 and 1,848 respectively.

The registered address of Rompetrol Rafinare SA is Bd. Navodari no. 215, Navodari, Constanta, Romania. Rompetrol Rafinare SA and its subsidiaries are part of KMG International N.V. group with its registered address located at World Trade Centre, Strawinskylaan 807, Tower A, 8th floor, 1077 XX Amsterdam, the Netherlands.

The Group’s ultimate parent company is “National Welfare Fund Samruk Kazyna” JSC, an entity with its headquarters in Kazakhstan, owned company of the Republic of Kazakhstan.

The Company is a joint stock company listed on the Bucharest Stock Exchange.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Basis of preparation and statement of compliance

These financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), effective as of 30 June 2021, as endorsed by the European Union (“EU”).

The consolidated financial statements are prepared under the historical cost convention except for derivative financial instruments and buildings and constructions that have been measured at fair value.

The consolidated financial statements provide comparative information in respect of the previous period. b) Going concern

The financial statements of the Group are prepared on a going concern basis. As at 30 June 2021 and 31 December 2020 the Group reported net assets including non-controlling interest, of USD 397.7 million and 421.3 million respectively. For the period ended 30 June 2021, the Group recorded losses in amount of USD 21.4 million (30 June 2020: loss of USD 126.1 million) and net current liabilities of USD 487.1 million (31 December 2020: net current liability of USD 515.8 million). The losses incurred during 2021 arise from operational losses USD 1.2 million (30 June 2020: operational loss USD 100.1 million) and financial losses USD 18.9 million (30 June 2020: financial loss USD 26.5 million).

The Parent Company, Rompetrol Rafinare SA has net asset amounting to RON 1.073 million as at 30 June 2021 (2020: RON 1.336 million) continues to be at a level lower than a half of the value of share capital (amounting to RON 4,410 as at 30 June 2021) and the Company’s management takes the necessary steps to regulate this situation within the timeframe stipulated by the law, based on the stipulations of art.153.24 of company Law no.31/1990, as subsequently amended and in accordance with the statutory decisions adopted. In this regard, the Company’s management prepared a plan with several proposed options in order to remediate the situation, and this is submitted to the shareholders' decision.

The Extraordinary General Meeting of Shareholders („EGMS”) of Rompetrol Rafinare is convoked on August 6th/9th, 2021.

English translation is for information purposes only. Romanian language text is the official text for submission. 9 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

On 19 March 2021, the Group received a letter of support from its main shareholder, KMG International NV, valid for the next 12 months from date of approval of financial statements. Management believes that the support from KMG International NV and banks is sufficient to enable the Company to continue its operations and settle its obligations in the ordinary course of business without substantial disposal of assets, externally forced, reversing of its operations or similar actions.

The company is planning to change the Company's accounting policy for valuation of the Company’s tangible non-current assets from the historic cost model to the revaluation model and for investments in subsidiaries from historic cost to fair value so that the information included and presented in the annual financial statements to be as much relevant and useful to all users of the Company’s financial statements starting with the financial year ended 31 December 2021. c) Changes in accounting policies

New and amended standards and interpretations

The accounting policies adopted are consistent with those of the previous financial year except for the following amended IFRSs which have been adopted by the Group as of 1 January 2021:

 Interest Rate Benchmark Reform – Phase 2 – IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Amendments) In August 2020, the IASB published Interest Rate Benchmark Reform – Phase 2, Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, completing its work in response to IBOR reform. The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). In particular, the amendments provide for a practical expedient when accounting for changes in the basis for determining the contractual cash flows of financial assets and liabilities, to require the effective interest rate to be adjusted, equivalent to a movement in a market rate of interest. Also, the amendments introduce reliefs from discontinuing hedge relationships including a temporary relief from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component. Furthermore, the amendments to IFRS 4 are designed to allow insurers who are still applying IAS 39 to obtain the same reliefs as those provided by the amendments made to IFRS 9. There are also amendments to IFRS 7 Financial Instruments: Disclosures to enable users of financial statements to understand the effect of interest rate benchmark reform on an entity’s financial instruments and risk management strategy. The amendments are effective for annual periods beginning on or after 1 January 2021 with earlier application permitted. While application is retrospective, an entity is not required to restate prior periods. Management has assessed there is no material impact at Group level from application of this standard. d) Standards issued but not yet effective and not early adopted’

The Group has not early adopted the following standards/interpretations:

 Amendment in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The amendments address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28, in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The main consequence of the amendments is that a full gain or loss is recognized when a transaction involves a business (whether it is housed in a subsidiary or not). A partial gain or loss is recognized when a transaction involves assets that do not constitute a business, even if these assets are housed in a subsidiary. In December 2015 the IASB postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. The amendments have not yet been endorsed by the EU. Management has assessed that amendments are not relevant for the Group.

English translation is for information purposes only. Romanian language text is the official text for submission. 10 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non- current (Amendments) The amendments are effective for annual reporting periods beginning on or after 1 January 2022 with earlier application permitted. However, in response to the covid-19 pandemic, the Board has deferred the effective date by one year, i.e. 1 January 2023, to provide companies with more time to implement any classification changes resulting from the amendments. The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current or non-current. The amendments affect the presentation of liabilities in the statement of financial position and do not change existing requirements around measurement or timing of recognition of any asset, liability, income or expenses, nor the information that entities disclose about those items. Also, the amendments clarify the classification requirements for debt which may be settled by the company issuing own equity instruments. These Amendments have not yet been endorsed by the EU. Management is in process assessing the impact at Group level from application of this amendments.

 IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and Contingent Assets as well as Annual Improvements 2018 - 2020 (Amendments) The amendments are effective for annual periods beginning on or after 1 January 2022 with earlier application permitted. The IASB has issued narrow-scope amendments to the IFRS Standards as follows:  IFRS 3 Business Combinations (Amendments) update a reference in IFRS 3 to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations.  IAS 16 Property, Plant and Equipment (Amendments) prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost in profit or loss.  IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendments) specify which costs a company includes in determining the cost of fulfilling a contract for the purpose of assessing whether a contract is onerous.  Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples accompanying IFRS 16 Leases The amendments have not yet been endorsed by the EU. Management has assessed there is no material impact at Group level from application of this amendments.

 IFRS 16 Leases- Cοvid-19 Related Rent Concessions (Amendment) The amendment applies, retrospectively, to annual reporting periods beginning on or after 1 June 2020. Earlier application is permitted, including in financial statements not yet authorized for issue at 28 May 2020. IASB amended the standard to provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the Covid-19 pandemic. The amendment provides a practical expedient for the lessee to account for any change in lease payments resulting from the covid-19 related rent concession the same way it would account for the change under IFRS 16, if the change was not a lease modification, only if all of the following conditions are met:  The change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change.  Any reduction in lease payments affects only payments originally due on or before 30 June 2021.  There is no substantive change to other terms and conditions of the lease. Management has assessed there is no material impact at Group level from application of this amendments.

English translation is for information purposes only. Romanian language text is the official text for submission. 11 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

e) Foreign currency translation

The group’s presentation currency is the US Dollar (or “USD”) that is the functional currency of the Parent and is the currency of the industry in which the Group operates.

Transactions and balances not already denominated in USD, and that are measured in RON or other currencies, have been measured in USD as follows:

Monetary assets and liabilities

Cash and cash equivalents, receivables, payables and short-term loans have been translated into USD at the period-end exchange rate. Gain or loss on translation of these assets and liabilities is recorded in the income statement.

Non-monetary assets and liabilities

Non-monetary assets and liabilities are translated from their historical cost or valuation by applying the exchange rate USD / RON from the date of acquisition, valuation or contribution to the statement of financial position.

Consolidated statement of income

Consolidated statement of income items has been translated applying the exchange rate from the month when the items were initially recorded to the consolidated income statement.

The gain and / or loss on foreign exchange differences related to the revaluation of items that are not denominated in USD are reflected in the consolidated income statement for the year.

English translation is for information purposes only. Romanian language text is the official text for submission. 12 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Other matters

In Romania, the official exchange rates are published by the National Bank of Romania (“Central Bank” or “National Bank”), and are considered to be a reasonable approximation of market exchange rates.

The translation of RON denominated assets and liabilities into USD for the purpose of these consolidated financial statements does not indicate that the Group could realize or settle in US dollars the reported values of these assets and liabilities. Likewise, it does not indicate that the Group could retain or distribute the reported USD values of equity to its shareholders.

Romanian lei translation for information purposes basis

Amounts in Romanian lei are provided for information purpose basis only and are translated by multiplying the values in USD with the 30 June 2021 closing exchange rate published by Romanian national Bank of RON 4.1425 = USD 1, for both 2021 and 2020 amounts. Translation is performed for all primary statements using the closing exchange rate.

f) Significant accounting judgments, estimates and assumptions

The preparation of the Group’s consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the reporting date. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. However, uncertainty about these assumptions and estimates could result in outcomes that require an adjustment to the carrying amount of the assets or liabilities affected in the future periods.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The matters presented below are considered to be the most important in understanding the judgments that are involved in preparing these consolidated financial statements and the uncertainties that could impact the amounts reported in the results of operations, financial position and cash flows.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that can lead to material adjustments to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur.

- Impairment of Goodwill on acquisitions

The Group’s annual impairment test at 31 December for goodwill is based on fair value less costs to sell calculations that use a discounted cash flow model for the CGU to which Goodwill has been allocated. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Group is not yet committed to undertake. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes (Note 4).

English translation is for information purposes only. Romanian language text is the official text for submission. 13 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

- Impairment of non- financial assets

The Group assesses annual at 31 December whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the carrying amounts for major property, plant and equipment and right of use assets are tested for impairment. If assets are determined to be impaired, the carrying amounts of those assets are written down to their recoverable amount, which is higher of fair value less costs to sell, and value in use determined as the amount of estimated discounted future cash flows. Impairments, except those related to goodwill, are reversed as applicable to the extent that the events or circumstances that triggered the original impairment have changed.

The Group bases its impairment calculation based on detailed budgets and forecasts, which are prepared separately for each of the Group’s CGUs. Budgets and forecasts used for impairment calculation generally cover the period of five years. Also, Budgets and forecasts are based on management estimates of future commodity prices, market supply and demand and product margins.

The key assumptions used to determine the recoverable amount for the different CGUs, including a sensitivity analysis, are disclosed and further explained in Note 6.

- Provision for environmental liability

The Group is involved in refining and petrochemicals, wholesale and retail and other related services. Environmental damage caused by such substances may require the Group to incur restoration costs to comply with the relevant regulations, and to settle any legal or constructive obligation. Analysis and estimates are performed by the Group together with its technical and legal advisers, in order to determine the probability, timing and amount involved with probable required outflow of resources. Estimated restoration costs, for which disbursements are determined to be probable, are recognized as a provision in the Group’s financial statements. When the final determination of such obligation amounts differs from the recognized provisions, the Group’s income statement is impacted.

Further details on provision for environmental liability are provided in Note 19.

- Deferred tax assets

Deferred tax assets are recognized for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized and for environmental provision. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Further details on deferred tax assets and for those losses carried forward for which deferred tax assets has not been recognized are provided in Notes 15 and 25.

English translation is for information purposes only. Romanian language text is the official text for submission. 14 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

- Carrying value of trade and other receivables

The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Group assesses the requirement for an allowance for impairment in trade and other receivables when contractual payments are 360 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group.

- Provision for litigations

The Group analyses its legal exposure regularly in order to determine whether provisions are required. In determining the amount of the provision, assumptions and estimates are made in relation to the probability of losing the case, the expected claim to be paid and the expected timing of the payments. Changes to these assumptions could have a significant impact on the amount of the provision.

Further details on the provisions relating to litigations are provided in Notes 19, 23 and 30.

- - Hybrid loan interest payable

The Group has unsecured hybrid loans subscribed by KMG International N.V., for which interest is computed based on the company’s annual EBIT (operational profit) and becomes payable if the below conditions are met cumulatively:  the company records net profit after tax in the year  the company will be able to distribute dividends as per the Romanian law requirements

At maturity the loan can be repaid in cash or fully or partially converted into shares at the option of the issuer. The estimated future payments of interest are classified as liability, as the Group cannot avoid making these payments if conditions are met, while the remaining balance of the loan is classified in equity and not subsequently remeasured. On annual basis, a reassessment of the future estimated interest payments is performed with direct impact in the current year result.

Further details on the hybrid loan interest payable are provided in Notes 12. g) Basis of consolidation

The consolidated financial statements comprise the financial statements of the parent company and its subsidiaries as at 30 June 2021.

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has:  Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee);  Exposure, or rights, to variable returns from its involvement with the investee;  The ability to use its power over the investee to affect its returns.

Generally, there is a presumption that a majority of voting rights result in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:  The contractual arrangement with the other vote holders of the investee;  Rights arising from other contractual arrangements;  The Group’s voting rights and potential voting rights. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

English translation is for information purposes only. Romanian language text is the official text for submission. 15 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non- controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies.

All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

If a Group loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value.

h) Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquire. For each business combination, the acquirer measures the non-controlling interest in the acquire either at fair value or at the proportionate share of the acquirer’s identifiable net assets. Acquisition costs incurred are expensed and included in administrative expenses.

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

If the business combination is achieved in stages, any previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in profit or loss.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group analyses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquire are assigned to those units.

Where goodwill has been allocated to a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained.

English translation is for information purposes only. Romanian language text is the official text for submission. 16 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) i) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

i. Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 15. Refer to the accounting policies in section (r) Revenue from contracts with customers.

The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Subsequent measurement

Financial assets at fair value through profit or loss

English translation is for information purposes only. Romanian language text is the official text for submission. 17 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of profit or loss.

This category includes derivative instruments and listed equity investments which the Group had not irrevocably elected to classify at fair value through OCI. Dividends on listed equity investments are also recognized as other income in the statement of profit or loss when the right of payment has been established.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated statement of financial position) when: • The rights to receive cash flows from the asset have expired; Or • The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass- through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.

Impairment of financial assets

The Group recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

English translation is for information purposes only. Romanian language text is the official text for submission. 18 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The Group considers a financial asset in default when contractual payments are 360 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

ii. Financial liabilities

Initial recognition and measurement

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Group’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:  Financial liabilities at fair value through profit or loss;  Loans and borrowings at amortized cost.

Derecognition

iii. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

j) Property, plant and equipment

Property, plant and equipment of the Company are stated at cost less cumulative depreciation, except for buildings that are periodically (not later than 5 years) revalued and measured at fair value.

The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Expenditures incurred after the assets have been commissioned, such as repairs and maintenance are charged to income in the period in which the costs are incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in an increase in the future economic benefits expected to be obtained from the use of an item of property, plant and equipment beyond its originally assessed standard of performance, the expenditures are capitalized as an additional cost of property, plant and equipment.

English translation is for information purposes only. Romanian language text is the official text for submission. 19 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

When assets are sold or retired, their cost and accumulated depreciation are eliminated from the accounts and any gain or loss resulting from their disposal is included in the income statement.

Construction in progress represents plant and properties under construction and is stated at cost, less any impairment loss. This includes cost of construction and other direct costs. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Depreciation for property, plant and equipment except land and construction in progress is computed using the straight-line method over the following estimated useful lives.

Years

Buildings and other constructions 10 to 100 Storage tanks 20 to 30 Tank cars 25 Machinery and other equipment 3 to 20 Gas pumps 8 to 12 Vehicles 5 Furniture and office equipment 3 to 10 Computers 3

Following the change in the accounting policy regarding recognition of buildings category from cost to revaluation method, also the economic remaining life utilization of the buildings were revaluated as at 31 December 2017. The depreciation of buildings category based on the revaluated remaining life utilization applies starting 1 January 2018. Before this date (i.e. 1 January 2018) the buildings category was stated at cost. The change from cost to revaluation provide a more transparent and up to date picture of the value of the Group assets.

When assets are sold or derecognized, their cumulative costs and depreciation are eliminated and any income or loss resulting from their disposal is included in the income statement.

Assets held under finance leases are recorded in the statement of financial position and depreciated over their expected useful lives on the same basis as owned assets, or where shorter the term of the relevant lease.

English translation is for information purposes only. Romanian language text is the official text for submission. 20 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) k) Intangible assets

Intangible assets are measured initially at cost. Intangible assets are recognized if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise; and the cost of the asset can be measured reliably. After initial recognition, intangible assets are measured at cost less accumulated amortization and any accumulated impairment losses. Intangible assets are amortized on a straight-line basis over the best estimate of their useful lives.

Intangible assets consist of software and licenses and are amortized on a straight-line basis over 3 to 5 years.

l) Impairment of non-financial assets

At 31 December the Group reviews the carrying amounts of its property, plant and equipment, intangible assets and right of use assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the assets (or cash-generating unit) is reduced to its recoverable amount. Impairment losses are recognized as an expense immediately, unless the relevant asset is property, plant and equipment stated at revalued amount in which case the impairment loss is treated as a revaluation decrease.

Goodwill

Goodwill is tested for impairment annually (as at 31 December) and when circumstances indicated that the carrying value may be impaired.

Impairment is determined for goodwill by assessing the recoverable amount of each cash-generating unit (or group of cash-generating units) to which the goodwill relates. Where the recoverable amount of the cash-generating unit is less than their carrying amount an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods.

English translation is for information purposes only. Romanian language text is the official text for submission. 21 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) m) Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Where the Group expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense related to any provision is presented in the income statement net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, where appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Provisions are not recognized for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date.

Additional comments on the following specific liabilities are:

- Environmental liabilities

Environmental expenditure that relates to current or future revenues is expensed or capitalized as appropriate. Expenditure that relates to an existing condition caused by past operations and that does not contribute to current or future earnings is expensed.

The Group has an environmental policy which complies with existing legislation and any obligations resulting from its environmental and operational licenses. In order to comply with all rules and regulations the Group has set up a monitoring system in accordance with the requirements of the relevant authorities. Furthermore, investment plans are adjusted to reflect any known future environmental requirements.

The above-mentioned expenses are estimated based on the relevant environmental studies.

Liabilities for environmental remediation costs are recognized when environmental assessments or clean- ups are probable, and the associated costs can be reasonably estimated. Generally, the timing of these provisions coincides with the commitment to a formal plan of action or, if earlier, on divestment or on closure of inactive sites.

n) Leases

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) i. Right-of-use assets

The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of- use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. The most significant category in right-of-used-assets refers to gas station buildings and equipment, land (on which the gas station is located) or rent for road utilization (for access to the gas station), for which the depreciation period is the lease contract term, from 25 up to 30 years.

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment. Refer to the accounting policies in section l) Impairment of non-financial assets. ii. Lease liabilities

At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

A lessee shall determine the lease term as a non-cancellable period of a lease, together with both:  Periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and  Period covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option The Group’s lease liabilities are included in Lease (see Note 14). iii. Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases. Lease payments on short-term leases and leases of low value assets are recognized as expense on a straight-line basis over the lease term.

English translation is for information purposes only. Romanian language text is the official text for submission. 23 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) o) Inventories

Inventories of raw material, petroleum products, including work-in-process are stated at the lower of cost and net realizable value. Net realizable value is the selling price in the ordinary course of business, minus the costs of completion, marketing and distribution. Cost comprises the acquisition cost and other costs that have been incurred in bringing the inventories to their present location and condition and is determined by weighted average method for all the inventories.

p) Trade receivables

A receivable represents the Group’s right to an amount of consideration that is unconditional. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 9.

q) Cash and cash equivalents

r) Revenue from contracts with customers

Revenue from contracts with customers is recognized when control of the goods or services is transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The normal credit term is 30 to 90 days upon delivery.

In recognizing revenue, the Group applies the five-step model based on the requirements of IFRS 15: a) identifying the contract with the customer; b) identifying performance obligations under the contract; c) determining the transaction price; d) allocating the transaction price to performance obligations; e) recognizing revenue at (or during) performance of obligation.

(i) Variable consideration

If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Some contracts for the sale of petroleum products provide customers volume rebates. The volume rebates give rise to variable consideration.

English translation is for information purposes only. Romanian language text is the official text for submission. 24 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(ii) Volume rebates

The Group provides retrospective volume rebates to certain customers once the quantity of products purchased during the period exceeds a threshold specified in the contract. Rebates are offset against amounts payable by the customer. To estimate the variable consideration for the expected future rebates, the Group applies the most likely amount method for contracts with a single-volume threshold and the expected value method for contracts with more than one volume threshold. The selected method that best predicts the amount of variable consideration is primarily driven by the number of volume thresholds contained in the contract. The Group then applies the requirements on constraining estimates of variable consideration and recognizes a refund liability for the expected future rebates.

(iii) Significant financing component

Generally, the Group receives short-term advances from its customers. Using the practical expedient in IFRS 15, the Group does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be less than one year.

Contract balances

Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer when that right is conditioned on something other than the passage of time. If the Group performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional.

Trade receivables

A receivable represents the Group’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section i) Financial instruments – initial recognition and subsequent measurement and section p) Trade receivables.

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Group transfers goods or services to the customer, a contract liability is recognized when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognized as revenue when the Group performs under the contract.

s) Interest bearing loans and borrowings

All loans and borrowings are initially recognized at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest bearing loans and borrowings are subsequently measured at amortized cost, using the effective interest method.

Gains and losses are recognized in the income statement when the liabilities are derecognized as well through the amortization process.

English translation is for information purposes only. Romanian language text is the official text for submission. 25 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) t) Borrowings costs

Borrowing costs consist of interest and other cost that an entity incurs in connection with the borrowing of funds.

u) Retirement benefit costs

Payments made to state - managed retirement benefit plans are dealt with as defined contribution plans where the Group pays fixed contributions into the state-managed fund and has no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior period. The contributions are charged as an expense in the same period when the employee service was rendered.

Under collective labor agreements in certain of the Group’s entities, employees are entitled to specified retirement benefits, payable on retirement, if they are employed with these entities at the date of their retirement. These amounts are estimated as of the reporting date based on the following information: applicable benefits provided in the agreement; the number of employees with the relevant Group entities; and actuarial assumptions on future liabilities. The defined benefit liability as of reporting date comprises the present value of the defined benefit obligation with the related service cost charged to the income statement. All actuarial gains and losses are fully recognized in other comprehensive income in the period in which they occur for all defined benefit plans. The related service cost and interest expense are charged to period profit and loss, while all the actuarial gains and losses are fully recognized in other comprehensive income in the period in which they occur.

The Group has no other liabilities with respect to future pension, health and other costs for its employees.

v) Taxes

- Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted, by the reporting date, in the countries where the Group operates and generates taxable income.

English translation is for information purposes only. Romanian language text is the official text for submission. 26 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

- Deferred tax

Deferred tax liabilities are recognized for all taxable temporary differences, except:  Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;  In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized except:  Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;  In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity.

Deferred tax liabilities are recognized for taxable temporary differences arising on investments in subsidiaries, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

- Sales tax

Revenues, expenses and assets are recognized net of the amount of sales tax except:  Where the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense item as applicable;  Receivables and payables that are stated with the amount of sales tax included.

The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

English translation is for information purposes only. Romanian language text is the official text for submission. 27 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) w) Dividends

Dividends are recorded in the year in which they are approved by the shareholders.

x) Foreign Currency Transactions

The Group translates its foreign currency transactions and balances into functional currency by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of transaction. Exchange rate differences arising on the settlement of monetary assets and liabilities or on reporting them at rates different from those at which they were initially recorded during the period or reported in the previous financial statements are recognized in the consolidated income statement in the period they arise.

y) Derivative Financial Instruments

The Group enters into contracts to purchase and sell crude oil and oil products at future delivery dates. These contracts expose the Group primarily to commodity risks of changes in fair value of crude oil and related oil products. The Group also uses financial instruments (primarily Options, Swaps and forwards) to hedge its risks associated with fair value fluctuation relating to certain firm commitments and forecasted transactions.

The use of financial derivatives is governed by the Group’s policies approved by board of directors, which provide written principles on the use of financial derivatives.

Derivative financial instruments are initially measured at fair value on the contract date and are remeasured to fair value at subsequent reporting dates.

Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative.

For the purpose of hedge accounting, hedges are classified as: • Fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment; • Cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction or the foreign currency risk in an unrecognized firm commitment.

At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge.

Beginning 1 January 2018, the documentation includes identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Group will assess whether the hedging relationship meets the hedge effectiveness requirements (including the analysis of sources of hedge ineffectiveness and how the hedge ratio is determined). A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements: • There is ‘an economic relationship’ between the hedged item and the hedging instrument; • The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship; • The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the Group actually hedges and the quantity of the hedging instrument that the Group actually uses to hedge that quantity of hedged item.

English translation is for information purposes only. Romanian language text is the official text for submission. 28 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Hedges that meet all the qualifying criteria for hedge accounting are accounted for, as described below:

Fair value hedge

The Group buys crude oil from the market, refines it and later sells the finished products (e.g.: gasoline, diesel, jet fuel etc.). The company hedges priced inventories (both raw materials and finished products) above BOS (basis operating stock) using futures instruments for a period that approximately matches the operating cycle.

Hedge accounting is applied for the futures instruments. The change in the fair value of a hedging instrument is recognized in the statement of profit or loss as Cost of Sales. The change in the fair value of the hedged item attributable to the risk hedged is recorded as part of the carrying value of the inventory and is also recognized in the statement of profit or loss as Cost of Sales. If the hedged item is derecognized, the unamortized fair value is recognized immediately in profit or loss (see Note 21).

Cash Flow Hedge

The Group buys crude oil from the market, refines it and later sells the finished products (e.g.: gasoline, diesel, jet fuel etc.). Throughout a given period, the volatility associated with the oil market, both in crudes and in finished products, is transmitted to the Group’s refinery margin (difference between the purchase price of crude oil and the selling price of finished products). To reduce this volatility, the Group hedges the margin with a swap on a hedged basket as relevant for the period.

Hedge accounting is applied for the refinery margin Swap instruments. The effective portion of the gain or loss on the hedging instrument is recognized in Other Comprehensive Income in the cash flow hedge reserve, while any ineffective portion is recognized immediately in the statement of profit or loss. Amounts recognized as OCI are transferred to profit or loss when the hedged transaction affects profit or loss (see Note 21).

Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognized in period profit or loss as they arise.

z) Emission Rights

CO2 emission rights quota are allocated to the Group’s refining and petrochemicals operations. For the period 2021 - 2025 the allowances have been validated by European Union and are posted on the Romanian Environmental Ministry website. The Group accounts for the liability resulting from generating of these emissions using the net liability method. The liability is recognized only at a point where the actual emissions exceed the quota allocated to the respective group companies. Income is recognized only when excess certificates are sold on the market.

aa) Fair value measurement

The Group measures financial instruments such as derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability; Or • In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Group.

English translation is for information purposes only. Romanian language text is the official text for submission. 29 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities; • Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; • Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above.

ab) Current versus non-current classification

The Group presents assets and liabilities in the statement of financial position based on current/non- current classification. An asset is current when it is: • Expected to be realized or intended to be sold or consumed in the normal operating cycle; • Held primarily for the purpose of trading; • Expected to be realized within twelve months after the reporting period; Or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when: • It is expected to be settled in the normal operating cycle; • It is held primarily for the purpose of trading; • It is due to be settled within twelve months after the reporting period; Or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Group classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

English translation is for information purposes only. Romanian language text is the official text for submission. 30 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ac) Contingencies

Contingent liabilities are not recognized in the consolidated financial statements. They are disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.

A contingent asset is not recognized in the financial statements but disclosed when an inflow of economic benefits is probable.

3. INTANGIBLE ASSETS

Amounts in USD

Intangibles Software Other Total in progress Cost Opening balance as of 35,864,711 40,209,168 5,296,415 81,370,294 January 1, 2020 Additions 10,278 306,183 2,672,640 2,989,101 Transfers from CIP 2,424,150 3,076,550 (5,500,700) - Transfers and reclassifications* - - 1,727,341 1,727,341 Closing balance as of December 31, 2020 38,299,139 43,591,901 4,195,696 86,086,736 Additions - - 1,032,416 1,032,416 Transfers from CIP 1,229,373 342,575 (1,571,948) - Transfers and reclassifications* - - 77,854 77,854 Closing balance as of June 30, 2021 39,528,512 43,934,476 3,734,018 87,197,006 Accumulated amortization Opening balance as of (35,070,216) (37,252,098) (523,380) (72,845,694) January 1, 2020 Charge for the year (1,290,912) (979,223) - (2,270,135) Closing balance as of December 31, 2020 (36,361,128) (38,231,321) (523,380) (75,115,829) Charge for the year (659,508) (667,815) - (1,327,323) Closing balance as of June 30, 2021 (37,020,636) (38,899,136) (523,380) (76,443,152) Net book value As of December 31, 2020 1,938,011 5,360,580 3,672,316 10,970,907 As of June 30, 2021 2,507,876 5,035,340 3,210,638 10,753,854

*) Includes, transfer from property, plant and equipment, reclassifications between categories and other adjustments;

Major part of ‘‘Other” (Intangible Assets) relates to licenses.

English translation is for information purposes only. Romanian language text is the official text for submission. 31 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

3. INTANGIBLE ASSETS (continued)

Amounts in RON (supplementary info – see Note 2(e))

Intangibles Software Other Total in progress

Cost Opening balance as of 148,569,565 166,566,478 21,940,399 337,076,442 January 1, 2020 Additions 42,577 1,268,363 11,071,411 12,382,351 Transfers from CIP 10,042,041 12,744,609 (22,786,650) - Transfers and reclassifications* - - 7,155,510 7,155,510 Closing balance as of December 31, 158,654,183 180,579,450 17,380,670 356,614,303 2020 Additions - - 4,276,783 4,276,783 Transfers from CIP 5,092,678 1,419,117 (6,511,795) - Transfers and reclassifications* - - 322,510 322,510 Closing balance as of June 30, 2021 163,746,861 181,998,567 15,468,168 361,213,596 Accumulated amortization Opening balance as of (145,278,370) (154,316,815) (2,168,102) (301,763,287) January 1, 2020 Charge for the year (5,347,603) (4,056,431) - (9,404,034) Closing balance as of December 31, (150,625,973) (158,373,246) (2,168,102) (311,167,321) 2020 Charge for the year (2,732,012) (2,766,423) - (5,498,435) Closing balance as of June 30, 2021 (153,357,985) (161,139,669) (2,168,102) (316,665,756) Net book value As of December 31, 2020 8,028,210 22,206,204 15,212,568 45,446,982 As of June 30, 2021 10,388,876 20,858,898 13,300,066 44,547,840

4. GOODWILL

The carrying value of goodwill as of 30 June 2021 and 31 December 2020 was USD 82,871,706 (RON: 343,296,042).

The whole carrying amount of goodwill has been allocated to Downstream Romania Cash Generating Unit (“Downstream Romania CGU”). Two other cash generating units in the Group are: Refineries and Petrochemicals.

The Downstream Romania CGU comprises the retail and wholesale operations of Rompetrol Downstream SRL and the wholesale activity supported by the storage depots owned by Rom Oil S.A.

Impairment test

Impairment tests have been performed by the Group for the carrying value of goodwill as of 31 December 2020 on the Downstream Romania cash generating units (“CGU”). Based on the impairment test no impairment has been identified. For further details see Note 6.

English translation is for information purposes only. Romanian language text is the official text for submission. 32 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

5. PROPERTY, PLANT AND EQUIPMENT

Amounts in USD Plant and Vehicles and Construction Land Buildings Total equipment others in progress Cost As of January 1, 2020 69,198,085 686,315,654 1,286,858,834 131,776,943 151,573,371 2,325,722,887 Acquisitions - 590,394 491,896 176,696 118,232,289 119,491,275 Transfers from CIP 372,949 29,943,496 85,530,114 5,586,894 (121,433,453) - Revaluation adjustment - 2,501,751 - - - 2,501,751 Disposals - (4,568,601) (14,078,619) (2,634,497) (49,275) (21,330,992) Transfers and reclassifications* - - 303 1,284 (1,823,761) (1,822,174) As of December 31, 2020 69,571,034 714,782,694 1,358,802,528 134,907,320 146,499,171 2,424,562,747 Additions - - 154,970 28,977 6,756,522 6,940,469 Transfers from CIP - 18,494,051 49,928,894 2,119,057 (70,542,002) - Disposals - (774,788) (223,647) (261,625) (11,600) (1,271,660) Transfers and reclassifications* - - - - (150,686) (150,686) As of June 30, 2021 69,571,034 732,501,957 1,408,662,745 136,793,729 82,551,405 2,430,080,870 Accumulated depreciation & Impairment As of January 1, 2020 (78,373) (182,861,249) (830,162,192) (103,169,761) (29,496,409) (1,145,767,984) Charge for the year - (39,163,338) (70,182,127) (8,364,526) - (117,709,991) Accumulated depreciation - 609,792 13,213,862 1,611,693 - 15,435,347 of disposals Impairment (1,885,934) (2,896,746) (110,903) - (3,273,976) (8,167,559) Transfers and reclassifications* - - (1,253) (335) - (1,588) As of December 31, 2020 (1,964,307) (224,311,541) (887,242,613) (109,922,929) (32,770,385) (1,256,211,775) Charge for the year - (20,153,535) (35,359,669) (4,075,017) - (59,588,221) Accumulated depreciation - 22,271 25,409 34,732 - 82,412 of disposals As of June 30, 2021 (1,964,307) (244,442,805) (922,576,873) (113,963,214) (32,770,385) (1,315,717,584) Net book value as of 67,606,727 490,471,153 471,559,915 24,984,391 113,728,786 1,168,350,972 December 31, 2020 Net book value as of 67,606,727 488,059,152 486,085,872 22,830,515 49,781,020 1,114,363,286 June 30, 2021

*) Includes, transfer from property, plant and equipment, reclassifications between categories and other adjustments.

English translation is for information purposes only. Romanian language text is the official text for submission. 33 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

5. PROPERTY, PLANT AND EQUIPMENT (continued)

Amounts in RON (supplementary info – see note 2(e)) Plant and Vehicles and Construction Land Buildings Total equipment others in progress Cost As of January 1, 2020 286,653,067 2,843,062,597 5,330,812,720 545,885,986 627,892,689 9,634,307,059 Acquisitions - 2,445,707 2,037,679 731,963 489,777,257 494,992,606 Transfers from CIP 1,544,941 124,040,932 354,308,497 23,143,708 (503,038,078) - Revaluation adjustment - 10,363,504 - - - 10,363,504 Disposals - (18,925,430) (58,320,679) (10,913,404) (204,122) (88,363,635) Transfers and reclassifications* - - 1,255 5,319 (7,554,935) (7,548,361) As of December 31, 2020 288,198,008 2,960,987,310 5,628,839,472 558,853,572 606,872,811 10,043,751,173 Additions - - 641,963 120,037 27,988,892 28,750,892 Transfers from CIP - 76,611,606 206,830,443 8,778,194 (292,220,243) - Disposals - (3,209,559) (926,458) (1,083,782) (48,053) (5,267,852) Transfers and reclassifications* - - - - (624,218) (624,218) As of June 30, 2021 288,198,008 3,034,389,357 5,835,385,420 566,668,021 341,969,189 10,066,609,995 Accumulated depreciation & Impairment As of January 1, 2020 (324,660) (757,502,724) (3,438,946,880) (427,380,735) (122,188,874) (4,746,343,873) Charge for the year - (162,234,128) (290,729,461) (34,650,049) - (487,613,638) Accumulated depreciation - 2,526,063 54,738,423 6,676,438 - 63,940,924 of disposals Impairment (7,812,482) (11,999,770) (459,416) - (13,562,446) (33,834,114) Transfers and reclassifications* - - (5,191) (1,388) - (6,579) As of December 31, 2020 (8,137,142) (929,210,559) (3,675,402,525) (455,355,734) (135,751,320) (5,203,857,280) Charge for the year - (83,486,019) (146,477,429) (16,880,758) - (246,844,206) Accumulated depreciation - 92,258 105,257 143,877 - 341,392 of disposals As of June 30, 2021 (8,137,142) (1,012,604,320) (3,821,774,697) (472,092,615) (135,751,320) (5,450,360,094) Net book value as of 280,060,866 2,031,776,751 1,953,436,947 103,497,838 471,121,491 4,839,893,893 December 31, 2020 Net book value as of 280,060,866 2,021,785,037 2,013,610,723 94,575,406 206,217,869 4,616,249,901 June 30, 2021

*) Includes, transfer from property, plant and equipment, reclassifications between categories and other adjustments.

English translation is for information purposes only. Romanian language text is the official text for submission. 34 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

5. PROPERTY, PLANT AND EQUIPMENT (continued)

In 2021, out of the total acquisitions for construction in progress the most significant refers to the following projects in respect of Rompetrol Rafinare SA: State Inspection for Control of Boilers, Pressure Vessels and Hoisting (ISCIR) authorizations amounting to USD 1 million, USD 0,7 million Refinery Slow Down 2021, USD 3 million Replace heater in VD unit, Vega Platform and in respect of Rompetrol Downstream also an amount of USD 1,7 million.

In 2020, out of the total acquisitions for construction in progress the most significant refers to the following projects in respect of Rompetrol Rafinare SA: Replacement of Catalyst amounting to USD 13.65 million, State Inspection for Control of Boilers, Pressure Vessels and Hoisting (ISCIR) authorizations amounting USD 21.84 million, Tank rehabilitation amounting to USD 2.73 million, 2020 General Turnaround PEM & PET USD 40.31 million, Fluid Catalytic Cracking (FCC) Unit Rehabilitation USD 6 million, replacement of reactor, improve cocker operation, modernization IPPA system and CF ramp, replace old switches and releys, detailed design engineering for firefighting system and other small project totaling USD 18,47 million. Total acquisitions for construction in progress for Vega refinery in amount of USD 5.6 million, for Rompetrol Downstream in amount of USD 5.5 million, for Romoil in amount of USD 2.9 million and for Rompetrol Gas in amount of USD 1 million. Part of these projects have been transferred to the other property, plant and equipment categories.

- Construction in progress

At the end of 30 June 2021 form USD 70.5 million transfer from CIP to PPE, USD 57 million are in respect of Rompetrol Rafinare (out of which USD 27.6 million representing State Inspection for Control of Boilers, Pressure Vessels and Hoisting (ISCIR) authorizations.)

At the end of 2020 the main projects remaining in construction in progress refers to the following: Tank rehabilitation amounting to USD 4.4 million, State Inspection for Control of Boilers, Pressure Vessels and Hoisting (ISCIR) authorizations amounting to USD 27.07 million, APC (i.e. Advance Process Control) in all refinery unit amounting to USD 3.05 million, replacement of reactor, improve cocker operation, modernization IPPA system and CF ramp, replace old switches and releys, detailed design engineering for firefighting system, new pipelines, maximize usage unit condensate, replacement for electrical in coke unit totaling USD 16,8 million, spare parts capex in amount of USD 4.5 million and other refinery ongoing project totaling USD 13.9 million.

During 2020, Downstream continued the process of expanding the network by opening new stations. The value of investment was USD 12.48 million.

In balance as of 31 December 2020, USD 22.46 million represent assets in course of construction in regard to the retail network development.

- Disposals

In 2021 assets disposed in Rompetrol Downstream in amount of USD 1.2 million.

In 2020, out of the total USD 21.3 million disposed assets, USD 12.4 million refers to catalysts replacement in units in Rompetrol Rafinare SA, and USD 5.37 million for Rompetrol Downstream referring to sales of 4 gas stations to Rompetrol Development as part of Kazakh – Romanian Energy Investment Found.

- Borrowing costs capitalized

The 2021 capital projects were financed from Groups’ operating cash flow, therefore no borrowing cost was capitalized during 2021 (2020: USD nil).

English translation is for information purposes only. Romanian language text is the official text for submission. 35 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

5. PROPERTY, PLANT AND EQUIPMENT (continued)

- Impairment

The Group completes an annual assessment, at 31 December, for any indication of impairment for all entities based on specific asset considerations, as applicable, and taking into consideration expectations on future estimated cash flows. Impairment tests have been performed by the Group for the carrying value of goodwill, property plant and equipment and right of use assets as of 31 December 2020 on the cash generating units (“CGUs”) listed below in Note 6.

- Revaluation of buildings category

Starting 31 December 2017, the Group changed its accounting policies regarding the recognition and measurement of its non-current assets, for buildings category, from cost model to the revaluation model.

The change from cost to revaluation will provide a more transparent and up-to-date picture of the value of the Group's assets. Fair value of the buildings category was determined using the market comparable method. The valuations were performed by an independent appraiser and are based on proprietary databases of prices for properties of similar nature, location and condition. Since this valuation was performed using a significant non-observable input, the fair value was classified as a Level 3 measurement.

Reconciliation of carrying amount Buildings mUSD mRON (supplementary info – see Note 2(e))

Carrying amount as at December 31, 2017 541.26 2,242.17 Revaluation gain recognised due to change in accounting policy to revaluation model 3.73 15.45 Revaluation loss recognised (11.17) (46.27) Depreciation for the year (36.98) (153.19) Additions/Disposals/Transfers and reclassifications 25.51 105.68 Impairment 8.94 37.03 Carrying amount and fair value as at 31 December 2018 531.29 2,200.87 Depreciation for the year (40.76) (168.85) Additions/Disposals/Transfers and reclassifications 12.93 53.56 Carrying amount and fair value as at 31 December 2019 503.46 2,085.58 Depreciation for the year (39.16) (162.22) Additions/Disposals/Transfers and reclassifications 26.58 110.11 Impairment (2.90) (12.01) Revaluation adjustment 2.50 10.36 Carrying amount and fair value as at 31 December 2020 490.48 2,031.82 Depreciation for the year (20.15) (83.47) Additions/Disposals/Transfers and reclassifications 17.74 73.49 Carrying amount and fair value as at 30 June 2021 488.07 2,021.84

*The Group changed the accounting policy with respect to the measurement of buildings category as at 31 December 2017 on a prospective basis. Therefore, the fair value of the buildings category was not measured at 31 December 2016.

If the buildings category would have been measured using the cost model, the carrying amounts would be, as follows:

English translation is for information purposes only. Romanian language text is the official text for submission. 36 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

5. PROPERTY, PLANT AND EQUIPMENT (continued)

Buildings Buildings 2021 2020 mUSD mRON mUSD mRON Cost 1,004.90 4,162.80 987.18 4,089.39 Accumulated depreciation and impairment (619.07) (2,564.50) (601.86) (2,493.21) Net carrying amount 385.83 1,598.30 385.32 1,596.19

- Pledged property, plant and equipment

The Group has pledged property, plant and equipment with a carrying value of USD 388 million (2020: USD 390 million) net, for securing banking facilities granted to Group entities.

In 2010, for Rompetrol Rafinare SA (the “Company”) it was established by ANAF an asset freeze on all fixed assets and investments and on the equity as well as on the shares, amounting to RON 1,595,020,055 in favor of the Romanian state (represented by ANAF). On these titles there was set up a rank 2 guarantee in favor of KMG International N.V.

According with the Memorandum of Understanding signed with the Romanian State and approved by Government Decision no. 35/2014, ANAF should remove and revoke the asset freeze established on 10 September 2010. To date ANAF has not applied the requirements of the MoU and has not lifted the asset freeze.

On 9 May 2016, Rompetrol Rafinare SA was notified that it was included as a civil responsible party in a file under investigation by DIICOT (See Note 30). Also, on the same date, the movable and immovable assets of Rompetrol Rafinare SA, as well as all the investments in subsidiaries, were subject to an asset freeze.

On 5 December 2019, DIICOT issued another Ordinance by which all criminal charges have been dismissed either on merits or because of passing the status of limitation period.

The seizure is lifted entirely but to protect the civil parties, namely Faber and State Authority which manages the State assets, a temporary seizure is kept up to USD 106 m over four Rompetrol Rafinare S.A.’ installations for a limited period of 30 days. If the said civil parties will not fill in a civil claim to the civil courts against Group companies, this temporary seizure is also null and void. If they still do, then it is up to the civil court to assess the grounds for keeping such a seizure in place until the civil claim will be settled.

Both Faber and AAAS and the Group challenged it. The Group challenge filled in on 27 December 2019 concerns the relevant criminal charges to be dismissed on merits and not because of passing the status of limitation. On 7 February 2020 DIICOT rejected the Group challenge against 5 December 2019 Ordinance. The group submitted to Supreme Court challenge against the DIICOT rejection and the first hearing is scheduled for 8 April 2020. The last term was schedule for 29 May 2020 and the Court postpone it for 26 June 2020 to allow the parties to prepare their defenses. On 10 July 2020, the Supreme Court issued the final decision according to which all the complaints formulated against the dismissal ordinance issued on 5 December 2019, issued in file no. 225 / D / P / 2006 by the PICCJ- DIICOT were rejected as inadmissible.

English translation is for information purposes only. Romanian language text is the official text for submission. 37 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

5. PROPERTY, PLANT AND EQUIPMENT (continued)

Faber submitted a civil claim to the Bucharest court against both the Group companies and defendants. On 25 May, the Bucharest Court rejected the request of Faber for settlement of the stamp fee that Faber should pay for its claim (for the time being is USD 530,000). On 8 July, Bucharest Court annulled Faber’s claim as unstamped.

On the other hand, Faber resumed one of the older files by which Faber challenged the increasing of the Rompetrol Rafinare S.A. share capital back in 2003 - 2005. The hearing is scheduled for 14 April but the case has been suspended due to the emergency enforced since 16 March, 2020. The next hearing was settled for 8 June 2021. On July 20, 2021, Ialomita Tribunal rejected Faber’s claim.

Briefly, the files regard the followings: 1. Cancellation of the statutory documents issued in 2001 when the share capital was increased due to the evaluation of fixed assets. The first stage of the file was won, now Faber is asking to resume the appeal; 2. Cancellation of the statutory documents issued in 2001 regarding the change of the name of the company (Rompetrol Rafinare S.A.), additional activities and change the Article of Association (“AoA”) according to the company law; 3. Cancellation of the statutory documents issued in 2003 regarding the evaluation of land and increasing the share capital by Rompetrol S.A. (“RPSA”) with this land; 4. Cancellation of the statutory documents issued in 2002 regarding the evaluation of assets (construction, equipment) by which RPSA contributed to Rompetrol Rafinare S.A. share capital increase; 5. Cancellation of the statutory documents issued in 2003 regarding the contribution in kind made by Rompetrol Downstream (“DWS”), Rompetrol Well Services (“RWS”), RPSA to Rompetrol Rafinare S.A. share capital; 6. Cancellation of the statutory documents issued in 2001 regarding the share capital increase according to the privatization contract;

6. IMPAIRMENT TEST

Impairment tests have been performed by the Group for the carrying value of goodwill, property plant and equipment and right of use assets as of 31 December 2020 on the cash generating units (“CGUs”) Refining, Petrochemicals and Downstream Romania. Based on the impairment tests performed, no impairment has been identified.

English translation is for information purposes only. Romanian language text is the official text for submission. 38 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

7. RIGHT OF USE ASSETS

Amounts in USD Land, buildings Plant and and special Vehicles Total equipment constructions Cost: As of January 1, 2020 67,216,970 24,817 413,829 67,655,616 Additions 8,841,467 41,527 1,154,322 10,037,316 Disposals (1,387,940) - (7,745) (1,395,685) Reclassifications and other transfers 31,863 115,285 (119,528) 27,620 Re-measurement 10,251,128 194,512 17,717 10,463,357 As of December 31, 2020 84,953,488 376,141 1,458,595 86,788,224 Additions 5,835,710 - 211,347 6,047,057 Disposals (80,650) - (45,955) (126,605) Re-measurement (266,835) 24,700 36,361 (205,774) As of June 30, 2021 90,441,713 400,841 1,660,348 92,502,902 Depreciation and Impairment: As of January 1, 2020 (4,607,506) (10,707) (193,582) (4,811,795) Depreciation and amortization (5,112,757) (111,244) (229,069) (5,453,070) Accumulated depreciation 20,230 - - 20,230 of disposals Reclassifications and other transfers - (86,090) 86,090 - As of December 31, 2020 (9,700,033) (208,041) (336,561) (10,244,635) Depreciation and amortization (2,687,808) (190,636) (248,451) (3,126,895) Accumulated depreciation 25,297 - 24,459 49,756 of disposals As of June 30, 2021 (12,362,544) (398,677) (560,553) (13,321,774)

Net Book value at June 30, 2021 78,079,169 2,164 1,099,795 79,181,128 Net Book value at December 31, 2020 75,253,455 168,100 1,122,034 76,543,589

Amounts in RON (supplementary info – see note 2(e))

Land, buildings Plant and and special Vehicles Total equipment constructions

Cost: As of January 1, 2020 278,446,298 102,804 1,714,287 280,263,389 Additions 36,625,779 172,026 4,781,779 41,579,584 Disposals (5,749,541) - (32,084) (5,781,625) Reclassifications and other transfers 131,992 477,568 (495,145) 114,415 Re-measurement 42,465,298 805,766 73,393 43,344,457 As of December 31, 2020 351,919,826 1,558,164 6,042,230 359,520,220 Additions 24,174,428 - 875,505 25,049,933 Disposals (334,093) - (190,369) (524,462) Re-measurement (1,105,364) 102,320 150,625 (852,419) As of June 30, 2021 374,654,797 1,660,484 6,877,991 383,193,272 Depreciation and Impairment: - - - - As of January 1, 2020 (19,086,594) (44,354) (801,913) (19,932,861) Depreciation and amortization (21,179,596) (460,828) (948,918) (22,589,342) Accumulated depreciation 83,803 - - 83,803 of disposals Reclassifications and other transfers - (356,628) 356,628 - As of December 31, 2020 (40,182,387) (861,810) (1,394,203) (42,438,400) Depreciation and amortization (11,134,245) (789,710) (1,029,208) (12,953,163) Accumulated depreciation 104,793 - 101,321 206,114 of disposals As of June 30, 2021 (51,211,839) (1,651,520) (2,322,090) (55,185,449) Net Book value at June 30, 2021 323,442,958 8,964 4,555,901 328,007,823 Net Book value at December 31, 2020 311,737,439 696,354 4,648,027 317,081,820

The Group recognized right of use assets for the following main categories of leases.

English translation is for information purposes only. Romanian language text is the official text for submission. 39 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

7. RIGHT OF USE ASSETS (continued)

Land, buildings and special construction category includes mainly:  Rent agreements for gas stations - in Rompetrol Downstream, in this category are included rent agreements for gas station buildings, land (on which the gas station is located) or rent for road utilization (for access to the gas station);  Rental of administrative buildings;  Rent for usage of maritime port - berths of Midia Port used by Rompetrol Rafinare;  Depots rent – used for storage of petroleum products.

Net book value at Net book value at USD June 30, 2021 December 31, 2020 Rent agreements for gas stations 62,970,470 59,549,633 Rental of administrative buildings 795,737 986,309 Rent for usage of maritime port 12,998,242 13,265,255 Depots rent 1,314,720 1,452,258 Total 78,079,169 75,253,455

Plant and equipment category includes mainly equipment for industrial water pumping stations.

Vehicles and other category includes mainly the agreements in relation the car fleet rental.

8. INVESTMENTS

Investments in Consolidated Subsidiaries

Details of the Group consolidated subsidiaries at 30 June 2021 and 31 December 2020 are as follows:

Effective Effective ownership Control ownership Control Country of 30 June 30 June 31 December 31 December Company name incorporation Range of activity 2021 2021 2020 2020 % % % %

Rompetrol Romania Retail Trade of Fuels Downstream SRL and Lubricants 100 100 100 100 Rom Oil S.A. Romania Wholesale of Fuels; fuel storage 100 100 100 100 Rompetrol Logistics Romania Logistics operations SRL 66.19 100 66.19 100 Rompetrol Romania Petrochemicals Petrochemicals SRL 100 100 100 100 Rompetrol Quality Romania Quality Control Control SRL Services 100 100 100 100 Rompetrol Gas SRL Romania LPG Sales 66.19 100 66.19 100

Effective ownership interests for the Group takes into consideration indirect shareholding weighted with corresponding Group ownership in the intermediate shareholder and this percentage is used for consolidation, while the control percent takes into consideration the total interest controlled directly and indirectly.

- Disposals through sales of subsidiaries and liquidations

During 2021 and 2020, there was no disposal of companies.

English translation is for information purposes only. Romanian language text is the official text for submission. 40 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

9. INVENTORIES, NET

December 31, December 31, June 30, 2021 June 30, 2021 2020 2020 USD USD RON RON (supplementary info – see Note 2(e)) Crude oil and other feedstock materials 128,636,261 66,430,951 532,875,710 275,190,215 Petroleum and petrochemical products 143,059,477 95,372,383 592,623,883 395,080,097 Work in progress 38,234,489 19,014,944 158,386,371 78,769,406 Spare parts 15,602,881 15,619,558 64,634,935 64,704,019 Consumables and other raw materials 5,689,752 6,073,618 23,569,798 25,159,963 Merchandises 11,255,911 13,838,181 46,627,611 57,324,665 Other inventories 7,704,516 7,666,692 31,915,958 31,759,272 Inventories write-down (26,702,376) (21,848,928) (110,614,593) (90,509,184)

323,480,911 202,167,399 1,340,019,673 837,478,453

The inventories provision movement in 2021 and 2020 is provided below:

Movements in inventories reserve:

December 31, June 30, December 31, June 30, 2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) Reserve as of January 1 (21,848,928) (26,408,965) (90,509,184) (109,399,138) Accrued provision (6,483,021) (47,344,879) (26,855,915) (196,126,160) Write off 4,414 10,886 18,285 45,095 Reversal of provision 1,625,159 51,894,030 6,732,221 214,971,019 Reserve as of June 30 / December 31 (26,702,376) (21,848,928) (110,614,593) (90,509,184)

The inventories provisions mainly represent the provision for net realizable value in relation to refineries and petrochemical plant inventories (such as petroleum and petrochemicals products from production and trading, raw materials) and provision of old spare parts.

The Group has pledged inventories in gross amount of USD 278 million (2020: USD 172 million) to secure banking facilities.

10. TRADE AND OTHER RECEIVABLES

As mentioned in Note 1 the Parent company and its subsidiaries are part of KMG International Group. The balances with related parties are disclosed in Note 27. December 31, December 31, June 30, 2021 June 30, 2021 2020 2020 USD USD RON RON (supplementary info – see Note 2(e)) Trade receivables 245,608,127 194,100,203 1,017,431,666 804,060,091 Advances to suppliers 13,823,022 8,011,509 57,261,869 33,187,676 Sundry debtors 109,761,264 119,603,528 454,686,036 495,457,615 VAT to be recovered 182,331 415,186 755,306 1,719,908 Other receivables 269,828,839 278,598,734 1,117,765,966 1,154,095,256 Provision for expected credit losses related to (43,133,783) (47,192,128) (178,681,696) (195,493,390) trade receivables

596,069,800 553,537,032 2,469,219,147 2,293,027,156

Movement in the above provision is disclosed below and in Note 23.

English translation is for information purposes only. Romanian language text is the official text for submission. 41 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

10. TRADE AND OTHER RECEIVABLES (continued)

Included in Sundry debtors in 2021 is an amount of USD 6.13 million (2020: USD 6.4 million) for principal liabilities and related penalties paid to ANAF following General Tax Inspection Report covering 2007 - 2010 and 2011 - 2015 period, and an additional USD 2.2 million (2020: USD 3.46 million) for payment made by Rompetrol Rafinare SA to Navodari City Hall following the fiscal audit on local taxes (in respect of revaluation of buildings) (see Note 30). Also, included in Sundry debtors category is an amount of USD 69.2 million (2020: USD 76.5 million) relating to Rompetrol Petrochemicals SRL receivables against KMGI as a result of Rompetrol Petrochemicals SRL assignment of receivables to KMGI starting with November 2017 for Rompetrol Rafinare SA debts (see Note 12).

In 2021, out of the total amount of USD 13.8 million (2020: USD 8 million) representing advances to suppliers, USD 12.1 million (2020: USD 5.7 million) are in respect of other raw materials, investment projects and management fees services in Rompetrol Rafinare and USD 1.5 million (2020: USD 2 million) are in respect of investment projects related to the construction of new stations, rebranding process and petroleum product in Rompetrol Downstream.

Out of the total balance for other receivables of USD 269.8 million (2020: USD 278.6 million), an amount of USD 243.4 million (2020: USD 238.7) million relates to cash pooling receivables for: Rompetrol Downstream USD 177.2 million (2020: USD 175.5 million), Rompetrol Rafinare USD 4.9 million (2020: USD 19.1 million), Rompetrol Gas USD 54 million (2020: USD 43.7 million), Rompetrol Quality Control USD 0.4 million (2020: USD 0.3 million), Rompetrol Logistics USD 0.4 million, Rompetrol Petrochemicals USD 6.3 million. Also, in other receivables an amount of USD 13 million (2020: USD 22 million) refers to excise receivables in Rompetrol Rafinare.

December 31, June 30, December 31, June 30, 2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) Sundry debtors 109,761,264 119,603,528 454,686,036 495,457,615 Other receivables 269,828,839 278,598,734 1,117,765,966 1,154,095,256 Provision for sundry debtors (5,531,891) (5,654,824) (22,915,859) (23,425,110) and other receivables

Out of the total amount of other receivables and sundry debtors of USD 379.6 million (2020: USD 398.2 million) an amount of USD 5.5 million (2020: USD 5.7 million) is provisioned.

English translation is for information purposes only. Romanian language text is the official text for submission. 42 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

10. TRADE AND OTHER RECEIVABLES (continued)

The movement in provision for expected credit losses for trade and other receivables is as follows:

December 31, June 30, December 31, Movements in receivables reserve: June 30, 2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) Balance at the beginning of the year (47,192,128) (46,982,359) (195,493,390) (194,624,422) Charge for the year 91,913 (2,368,205) 380,749 (9,810,289) Utilised (243,891) 4,914,449 (1,010,318) 20,358,105 Unused amounts reversed 2,423,817 393,920 10,040,662 1,631,814 Reclassification between categories trade - 1,055 - 4,370 receivables and other receivables Amounts written off as uncollectible (126,164) - (522,634) - Exchange rate differences 1,912,670 (3,150,988) 7,923,235 (13,052,968) Balance at the end of the year (43,133,783) (47,192,128) (178,681,696) (195,493,390)

Trade receivables totaling USD 163.3 million as at 30 June 2021 and USD 115.2 million as at 31 December 2020 are pledged to obtain credit facilities (see Notes 12 and 18).

11. CASH AND CASH EQUIVALENTS

December 31, June 30, December 31, June 30, 2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) Cash at bank 75,991,153 99,203,775 314,793,351 410,951,639 Cash on hand 1,610,756 1,396,775 6,672,557 5,786,140 Cash equivalents 72,154 55,406 298,898 229,519

77,674,063 100,655,956 321,764,806 416,967,298

Cash equivalents represent mainly cheques in the course of being cashed.

English translation is for information purposes only. Romanian language text is the official text for submission. 43 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

12. EQUITY

As of 30 June 2021 and 31 December 2020, the share capital consisted of 44,109,205,726, authorized, issued and fully paid ordinary shares with a face value of RON 0.1 each.

Shareholders’ structure as at 30 June 2021 is as follows:

30 June 2021

Amount per statutory Amount under Amount under Shareholders Ownership documents IFRS [USD] IFRS [RON] [RON] KMG International NV 48.11% 2,122,250,643 704,057,130 2,916,556,660 Romanian State represented by 44.70% 1,971,500,905 654,045,871 2,709,385,021 Ministry of Energy Rompetrol Financial Group S.R.L. 6.47% 285,408,308 94,684,271 392,229,593 Rompetrol Well Services S.A. 0.05% 2,198,030 729,197 3,020,699 Others (not State or KMGI Group) 0.67% 29,562,687 9,807,428 40,627,270 Total 100% 4,410,920,573 1,463,323,897 6,061,819,243

Shareholders’ structure as at 31 December 2020 was as follows:

31 December 2020

There were no changes in the statutory value of Rompetrol Rafinare SA issued share capital in 2021 and 2020.

Share premium and effect of transfers with equity holders

Share premium and effect of transfers with equity holders are the result of conversion of bonds into ordinary shares as at 30 September 2010 in favor of the Romanian State represented by the Ministry of Finance, based on the Emergency Ordinance (“EGO”) 118/2003 ratified by Law 89/2005.

The transactions resulted in an impact on the Effect of transfer with equity holders reserve amounting USD 596.83 million and share premium of USD 74 million.

English translation is for information purposes only. Romanian language text is the official text for submission. 44 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

12. EQUITY (continued)

Hybrid Loan

In 2012, USD 800 million of the total outstanding balance of the loan payable to KMG International NV was converted into an unsecured hybrid loan, repayable after 51 years. During 2013, an additional USD 200 million were converted (USD 150 million related to Rompetrol Rafinare and USD 50 million to Rompetrol Downstream), the hybrid loan amounting to USD 1,000 million. The loan is subordinated to any present and future liability of the companies. At maturity the loan can be repaid in cash or fully or partially converted into shares at the option of the issuer. The interest rate for this loan is 15% of the aggregate amount of the company’s annual EBIT (operational profit), and it is computed and becomes payable if the below conditions are met cumulatively (as per the addendum to the hybrid loan contract concluded in May 2021):  the company records net profit after tax for the year;  the company will distribute dividends.

In 2017, an additional USD 72.2 million related to Rompetrol Rafinare SA were converted to hybrid loan repayable after 51 years. As of 31 December 2017, the total value of the hybrid loan is amounting USD 1,072 million. The additional loan is subordinated to any present and future liability of the companies. At maturity the loan can be repaid in cash or fully or partially converted into shares. The interest rate for this loan is 2% of the aggregate amount of the company’s annual EBIT (operational profit), and it is computed and becomes payable if the below conditions are met cumulatively as per the addendum to the hybrid loan contract concluded in May 2021):  the company records net profit after tax for the year;  the company will distribute dividends.

Also, in 2017 management carried out an assessment on the potential hybrid loan interest liability and recorded an amount of USD 14.6 million, based on the projected profitability of the business for the upcoming period. This liability was updated in 2018 to USD 17 million and no change in the interest assessment resulted for 2019. On annual basis, a reassessment of the future interest is performed with direct impact in the current year result.

Revaluation reserve

As of 30 June 2021, the balance of the revaluation reserves is affected by the transfer in retained earnings of the difference between depreciation based on revalued carrying amount and depreciation based on the initial cost of assets in the buildings category. Under the accounting policy adopted by the Group as of 31 December 2017, the revaluation surplus included in the revaluation reserve is capitalized by the transfer in retained earnings as a result of the use of the asset or disposal, insofar as that transfer has not already been made during the use of the asset reassessed. Thus, as of 30 June 2021, the revaluation surplus transferred to retained earnings was USD 3.8 million (31 December 2020: USD 8.2 million).

English translation is for information purposes only. Romanian language text is the official text for submission. 45 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

13. LONG-TERM BORROWINGS FROM BANKS

2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) Unicredit Bank, ING Bank, BCR, Raiffeisen Bank 96,102,144 96,110,111 398,103,131 398,136,136 Rompetrol Downstream: General corporate purposes and working capital facility of USD 435,000,000. The facility consists of three parts: (I) USD 240 million committed line and the maturity date is April 23, 2023, (II) USD 75 million revolving facility with maturity October 28, 2021 and (III) USD 120 million uncommitted with the maturity date is April 23, 2022. The facility is secured by: inventories, receivables, gas stations, depots and current accounts.

Unicredit Bank, ING Bank, BCR, Raiffeisen Bank 143,954,988 143,994,567 596,333,538 596,497,493 Rompetrol Rafinare: General corporate purposes and working capital facility of USD 435,000,000. The facility consists of three parts: (I) USD 240 million committed line and the maturity date is April 23, 2023, (II) USD 75 million revolving facility with maturity October 28, 2021 and (III) USD 120 million uncommitted with the maturity date is April 23, 2022. The facility is secured by: inventories, receivables, gas stations, depots and current accounts. Amount payable within one year principal (57,132) (104,678) (236,669) (433,629) Total 240,000,000 240,000,000 994,200,000 994,200,000

2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) One year or less - principal 57,132 104,678 236,669 433,629 Between two and five years 240,000,000 240,000,000 994,200,000 994,200,000 Total 240,057,132 240,104,678 994,436,669 994,633,629

The loans are secured with pledges on property plant and equipment of USD 388 million (2020: USD 390), inventories of USD 278 million (2020: USD 172 million) and trade receivables of USD: 163 million (2020: USD 115 million).

At the level of KMG International NV, loan covenants are tested for the syndicated loan every 6 months. KMG International NV’s manages its capital structure aiming to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the banks to immediately call loans and borrowings.

As of 30 June 2021 and based on the approved budgets and cash flows, the management of KMG International considers that the financial covenants are met.

English translation is for information purposes only. Romanian language text is the official text for submission. 46 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

14. OBLIGATIONS UNDER LEASE AGREEMENTS

2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) As at 1 January 85,820,519 66,076,256 355,511,500 273,720,890 Additions 6,027,538 9,955,900 24,969,076 41,242,316 Remeasurement (489,165) 8,854,342 (2,026,366) 36,679,112 Payments (5,561,882) (9,283,822) (23,040,096) (38,458,233) Interest accrued 2,669,088 4,644,299 11,056,697 19,239,009 Exchange rate impact (1,197,072) 5,349,584 (4,958,871) 22,160,652 Other changes 839 223,960 3,476 927,753 As at 30 June / 31 December 87,269,865 85,820,519 361,515,416 355,511,499 Non-current 82,829,888 81,816,635 343,122,811 338,925,410 Current 4,439,977 4,003,884 18,392,605 16,586,089

The following amounts were recognized in profit or loss:

2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) Depreciation expense of right-of-use 3,126,895 5,453,070 12,953,163 22,589,342 assets Interest expense on lease liabilities 2,669,087 4,644,298 11,056,693 19,239,004 Variable lease payments (included in 2,825,845 5,428,099 11,706,063 22,485,900 selling and distribution) Total amount recognised in profit or 8,621,827 15,525,467 35,715,919 64,314,246 loss

The Group has lease contracts for gas stations that contains a fixed payment plus a variable payment based on of petroleum quantities sold:

2021 2020 Fixed Variable Fixed Variable USD payments payments payments payments Fixed rent 5,561,882 - 8,863,890 - Variable rent with minimum payment - 2,825,845 419,932 5,428,099 Total 5,561,882 2,825,845 9,283,822 5,428,099

English translation is for information purposes only. Romanian language text is the official text for submission. 47 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

15. DEFERRED TAX ASSETS AND LIABILITIES

Deferred tax, net balances are presented in the statement of financial position as follows:

June 30, December December 31, June 30, 2021 2021 31, 2020 2020 USD USD RON RON (supplementary info – see Note 2(e)) Deferred tax liabilities 3,727,348 4,339,808 15,440,539 17,977,655 Deferred tax (asset) / liability, net 3,727,348 4,339,808 15,440,539 17,977,655

The deferred tax (assets) / liabilities are comprised of the tax effect of the temporary differences related to:

USD

Charged/(Credited) Opening Charged/(Credited) Closing 2021 to income balance to equity balance

Temporary differences

Intangible assets 49,238 - - 49,238 Property, plant and 303,369,770 - (3,827,879) 299,541,891 equipment Inventories 82,619 - - 82,619 Provisions (59,203,562) - - (59,203,562) Tax losses (217,173,599) - - (217,173,599) Other (663) - - (663)

Total temporary 27,123,803 - (3,827,879) 23,295,924 differences (asset)/liability Deferred tax effect Intangible assets 7,878 - - 7,878 Property, plant and 48,539,163 - (612,460) 47,926,703 equipment Inventories 13,219 - - 13,219 Provisions (9,472,570) - - (9,472,570) Tax losses (34,747,776) - - (34,747,776) Other (106) - - (106) Deferred tax (asset)/liability 4,339,808 - (612,460) 3,727,348 recognized

English translation is for information purposes only. Romanian language text is the official text for submission. 48 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

15. DEFERRED TAX ASSETS AND LIABILITIES (continued)

RON (supplementary info – see note 2(e))

Charged/(Credited) Opening Charged/(Credited) Closing 2021 to income balance to equity balance

Temporary differences

Intangible assets 203,967 - - 203,967 Property, plant and equipment 1,256,709,269 - (15,856,989) 1,240,852,280 Inventories 342,249 - - 342,249 Provisions (245,250,760) - - (245,250,760) Tax losses (899,641,638) - - (899,641,638) Other (2,746) - - (2,746)

Total temporary differences 112,360,341 - (15,856,989) 96,503,352 (asset)/liability Deferred tax effect Intangible assets 32,635 - - 32,635 Property, plant and equipment 201,073,483 - (2,537,116) 198,536,367 Inventories 54,760 - - 54,760 Provisions (39,240,122) - - (39,240,122) Tax losses (143,942,662) - - (143,942,662) Other (439) - - (439) Deferred tax (asset)/liability 17,977,655 - (2,537,116) 15,440,539 recognized

The deferred tax (assets) / liabilities recognized at each company level is presented below:

USD

Deferred tax (asset)/liability Opening Charged/(Credited) Charged/(Credited) Closing recognized balance to income to equity balance Rompetrol Rafinare SA 250,183 - (458,374) (208,191) Rompetrol Downstream S.R.L. 1,246,280 - (84,126) 1,162,154 Rom Oil S.A. 1,918,708 - (69,960) 1,848,748 Rompetrol Gas S.R.L. 342,992 - - 342,992 Rompetrol Logistics S.R.L. 581,645 - - 581,645 Deferred tax (asset)/liability 4,339,808 - (612,460) 3,727,348 recognized

RON (supplementary info – see Note 2(e))

Deferred tax (asset)/liability Opening Charged/(Credited) Charged/(Credited) Closing recognized balance to income to equity balance Rompetrol Rafinare SA 1,036,383 - (1,898,815) (862,432) Rompetrol Downstream S.R.L. 5,162,715 - (348,492) 4,814,223 Rom Oil S.A. 7,948,249 - (289,809) 7,658,440 Rompetrol Gas S.R.L. 1,420,844 - - 1,420,844 Rompetrol Logistics S.R.L. 2,409,464 - - 2,409,464 Deferred tax (asset)/liability 17,977,655 - (2,537,116) 15,440,539 recognized

English translation is for information purposes only. Romanian language text is the official text for submission. 49 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

15. DEFERRED TAX ASSETS AND LIABILITIES (continued)

USD

Opening Charged/(Credited) Charged/(Credited) Closing 2020 balance to income to equity balance

Temporary differences

Intangible assets 49,238 - - 49,238 Property, plant and equipment 307,638,713 1,419,295 (5,688,238) 303,369,770 Inventories 82,619 - - 82,619 Provisions (63,788,275) 4,584,713 - (59,203,562) Tax losses (380,951,481) 163,777,882 - (217,173,599) Other (663) - - (663)

Total temporary differences (136,969,849) 169,781,890 (5,688,238) 27,123,803 (asset)/liability Deferred tax effect Intangible assets 7,878 - - 7,878 Property, plant and equipment 49,222,194 227,087 (910,118) 48,539,163 Inventories 13,219 - - 13,219 Provisions (10,206,124) 733,554 - (9,472,570) Tax losses (60,952,237) 26,204,461 (34,747,776) Other (106) - - (106) Deferred tax (asset)/liability (21,915,176) 27,165,102 (910,118) 4,339,808 recognized

RON (supplementary info – see Note 2(e))

Opening Charged/(Credited) Charged/(Credited) Closing 2020 balance to income to equity balance

Temporary differences

Intangible assets 203,967 - - 203,967 Property, plant and equipment 1,274,393,365 5,879,430 (23,563,526) 1,256,709,269 Inventories 342,249 - - 342,249 Provisions (264,242,934) 18,992,174 - (245,250,760) Tax losses (1,578,091,510) 678,449,872 - (899,641,638) Other (2,746) - - (2,746)

Total temporary differences (567,397,609) 703,321,476 (23,563,526) 112,360,341 (asset)/liability Deferred tax effect Intangible assets 32,635 - - 32,635 Property, plant and equipment 203,902,939 940,708 (3,770,164) 201,073,483 Inventories 54,760 - - 54,760 Provisions (42,278,869) 3,038,747 - (39,240,122) Tax losses (252,494,642) 108,551,980 - (143,942,662) Other (439) - - (439) Deferred tax (asset)/liability (90,783,616) 112,531,435 (3,770,164) 17,977,655 recognized

The ability of the Group to obtain recovery of its deferred tax asset depends on the entities ability, where tax losses have arisen to generate sufficient taxable income to cover the applicable tax losses available. Management considers that future taxable income will be generated for recovery of the available tax losses where it has recognized a corresponding deferred tax asset.

English translation is for information purposes only. Romanian language text is the official text for submission. 50 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

15. DEFERRED TAX ASSETS AND LIABILITIES (continued)

See also note 25 for details for the income tax rate and other related matters.

Deferred tax assets and liabilities cannot be offset between the companies from Romania. The local fiscal law does not define the concept of “Fiscal Group”, therefore the fiscal losses cannot be offset between companies within the same country either.

16. TRADE AND OTHER PAYABLES

December 31, June 30, December 31, June 30, 2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) Trade payables 706,778,214 651,293,146 2,927,828,747 2,697,981,860 Excise taxes 362 1,036 1,500 4,291 Special fund tax for oil products 6,653,136 6,948,356 27,560,616 28,783,565 VAT payable 119,260,674 186,126,448 494,037,342 771,028,811 Other taxes payable (39,907) (53,617) (165,315) (222,108) Employees and social obligations 5,088,364 7,473,168 21,078,548 30,957,598 Other liabilities 525,179,178 415,945,223 2,175,554,745 1,723,053,086 Total 1,362,920,021 1,267,733,760 5,645,896,183 5,251,587,103

The Group entered into a cash pooling contract for optimizing cash, with KMG Rompetrol SRL (“Master Company”). The amounts in balance as of 30 June 2021 are included in other liabilities, for the following companies: Rompetrol Rafinare S.A. USD 478.2 million, Romoil USD 16.9 million and Rompetrol Gas USD 24.4 million.

Also in other liabilities are included short term guarantees in Rompetrol Downstream SRL, in amount of USD 4.17 million (2020: USD 4.24 million).

As of 30 June 2021 and 31 December 2020, deferred revenue in amount of USD 5,592,450 (2020: USD 5,941,032) was reclassified under Contract liabilities line.

As of 30 June 2021 and 31 December 2020, profit tax payable in amount of USD 5,466,150 (2020: USD 4,008,243) was reclassified as a separate line in Consolidated Statement of Financial Position.

English translation is for information purposes only. Romanian language text is the official text for submission. 51 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

17. CONTRACT LIABILITIES

December 31, June 30, December 31, June 30, 2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) Short-term advances from wholesale 19,109,526 19,570,720 79,161,211 81,071,708 customers Short-term advances from other 11,597,242 5,401,097 48,041,575 22,374,044 customers Deferred revenues 5,592,450 5,941,032 23,166,724 24,610,725 Total short-term advances 36,299,218 30,912,849 150,369,510 128,056,477

Contract liability relates to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as (or when) the Group performs under the contract.

The disclosed amounts refers to advances from customers is in respect of petroleum products sales and excises.

English translation is for information purposes only. Romanian language text is the official text for submission. 52 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

18. SHORT-TERM DEBT

2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e))

Banca Transilvania 20,852,329 30,131,421 86,380,773 124,819,410 Rompetrol Rafinare S.A.: Two revolving credit ceiling on short term credit facility, one up to EUR 30 million and the second up to EUR 27.96 million, for issue of letters of credit and letters of guarantee. Maturity date is July 31, 2021. Drawings in USD/EUR/RON.

Unicredit Bank, ING Bank, BCR, Raiffeisen Bank 52,546,201 22,689,532 217,672,638 93,991,386 Rompetrol Rafinare: General corporate purposes and working capital facility of USD 435,000,000. The facility consists of three parts: (I) USD 240 million committed line and the maturity date is April 23, 2023, (II) USD 75 million revolving facility with maturity October 28, 2021 and (III) USD 120 million uncommitted with the maturity date is April 23, 2022. The facility is secured by: inventories, receivables, gas stations, depots and current accounts.

Accrued interest 40,385 23,452 167,295 97,150

Current portion of long-term debt 57,132 104,678 236,669 433,629

73,496,047 52,949,083 304,457,375 219,341,575

English translation is for information purposes only. Romanian language text is the official text for submission. 53 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

18. SHORT-TERM DEBT (continued)

2021 2020 2021 2020 USD USD RON RON Borrowings from shareholders and related parties (supplementary info – see Note 2(e)) KMG International N.V. - 10,655,710 - 44,141,279 Rompetrol Rafinare SA: Short-term facility for working capital needs in amount of up to USD 250 million, maturity date - December 31, 2020, assignment of receivables, real movable security interest over movable assets; real movable security interest over the investments in Rompetrol Logistics SRL, Rompetrol Petrochemicals SRL, Rompetrol Downstream SRL, Romoil SA; real movable security interest over the bank accounts. The facility has been fully repaid on February 18, 2021.

Accrued interest - 1,686,456 - 6,986,144 - 12,342,166 - 51,127,423

As at 30 June 2021 and based on the approved budgets and cash flows, the management of KMG International considers that the financial covenants are met.

The loans are secured with pledges on property plant and equipment of USD 388 million (2020: USD 390 million), inventories of USD 278 million (2020: USD 172 million) and trade receivables of USD 163 million (2020: USD 115 million).

English translation is for information purposes only. Romanian language text is the official text for submission. 54 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

18. SHORT-TERM DEBT (continued)

The movement in loans is presented below:

At 1 January Exchange rate At 30 June USD Drawings Repayment Interest accrual 2021 impact 2021 Long-term borrowings from banks 240,000,000 - - - - 240,000,000 Short-term borrowings from banks 52,820,953 47,043,915 (26,072,418) - (393,920) 73,398,530 Short term borrowings from related parties 10,655,710 - (10,655,710) - - -

Interest Long-term borrowings banks - - (3,750,822) 3,750,822 - - Interest Short term borrowings from related 1,686,456 - (1,724,709) 38,253 - - parties Interest Short-term borrowings from banks 128,130 - (376,833) 346,220 - 97,517 Total 305,291,249 47,043,915 (42,580,492) 4,135,295 (393,920) 313,496,047

At 1 January Exchange rate At 30 June RON (supplementary info – see Note 2(e)) Drawings Repayment Interest accrual 2021 impact 2021 Long-term borrowings from banks 994,200,000 - - - - 994,200,000 Short-term borrowings from banks 218,810,798 194,879,418 (108,004,991) - (1,631,814) 304,053,411 Short term borrowings from related parties 44,141,279 - (44,141,279) - - -

Interest Long-term borrowings banks - - (15,537,780) 15,537,780 - - Interest Short term borrowings from related 6,986,142 - (7,144,605) 158,463 - - parties Interest Short-term borrowings from banks 530,779 - (1,561,031) 1,434,216 - 403,964 Total 1,264,668,998 194,879,418 (176,389,686) 17,130,459 (1,631,814) 1,298,657,375

English translation is for information purposes only. Romanian language text is the official text for submission. 55 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

19. PROVISIONS

Provisions comprise the following:

2021 2020 2021 2020 USD USD RON RON (supplementary info – see Note 2(e)) Non-current provisions 79,332,744 79,332,744 328,635,892 328,635,892 Total Provisions 79,332,744 79,332,744 328,635,892 328,635,892

The movement in provisions is presented below:

USD At 1 January 2021 At 30 June 2021

Provision for retirement benefit 18,361,742 18,361,742 Provision for restructuring 13,486 13,486 Environmental provisions 60,527,516 60,527,516 Other provisions 430,000 430,000 Total 79,332,744 79,332,744

RON (supplementary info – see Note 2(e)) At 1 January 2021 At 30 June 2021

Provision for retirement benefit 76,063,516 76,063,516 Provision for restructuring 55,866 55,866 Environmental provisions 250,735,235 250,735,235 Other provisions 1,781,275 1,781,275 Total 328,635,892 328,635,892

Arising At 31 At 1 January Charged during Unwinding December USD 2020 to equity the year Utilised of discount 2020

Provision for retirement benefit 16,485,602 3,054,281 1,193,847 (2,371,988) - 18,361,742 Provision for restructuring 13,486 - - - - 13,486 Environmental provisions 63,862,752 - - (5,399,888) 2,064,652 60,527,516 Other provisions - - 430,000 - - 430,000 Total 80,361,840 3,054,281 1,623,847 (7,771,876) 2,064,652 79,332,744

At 1 Arising At 31 RON (supplementary info – January Charged during the Unwinding December see Note 2(e)) 2020 to equity year Utilised of discount 2020

Provision for retirement benefit 68,291,606 12,652,359 4,945,511 (9,825,960) - 76,063,516 Provision for restructuring 55,866 - - - - 55,866 Environmental provisions 264,551,450 - - (22,369,036) 8,552,821 250,735,235 Other provisions - - 1,781,275 - - 1,781,275 Total 332,898,922 12,652,359 6,726,786 (32,194,996) 8,552,821 328,635,892

English translation is for information purposes only. Romanian language text is the official text for submission. 56 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

19. PROVISIONS (continued)

Environmental provision

As of 31 December 2020, the Group recognized an environmental provision of USD 60.5 million. Total costs incurred during 2020: USD 6.5 million.

At the end of 2020, a re-assessment of the site restoration provision was performed considering the work done during the year, the updated variable indicators (e.g. exchange rate and discount rate) and the purchase prices (estimated for the full project by using the actual prices from the agreements in place for lagoons 16 and 17). The results of the reassessment lead to a reversal of provision in amount of USD 3.3 million, being mainly generated by the actual costs incurred during 2020, partially offset by unwinding effect of USD 2.06 million.

Retirement benefit provision

Under the collective labor agreements that certain of the Group’s entities have in force, employees are entitled to specific retirement benefits that are payable upon retirement, if the employees are employed with Group entities at the date of their retirement. The level of benefits provided depends on the member’s length of service, the employees is entitled to a fix amount per each year of service. A corresponding provision has been recognized based on: the specific benefits provided in the agreement; the number of employees working within the relevant Group entities; and actuarial assumptions on future liabilities. These liabilities are recorded at their fair values as of the balance sheet date. For the computation an actuarial valuation is involved making various assumptions that may differ from actual developments in the future. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

English translation is for information purposes only. Romanian language text is the official text for submission. 57 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

20. REVENUES FROM CONTRACTS WITH CUSTOMERS

2021

Consolidation USD Refining Petrochemicals Marketing Consolidated adjustments Gross revenues from petroleum products production 1,878,067,699 - - 176,250,004 2,054,317,703 Less sales taxes from petroleum products production (540,107,991) - - 530,568,146 (9,539,845) Net revenues from petroleum products production 1,337,959,708 - - 706,818,150 2,044,777,858 Gross revenues from petroleum products trading 7,232,844 - 1,425,379,272 (1,404,670,945) 27,941,171 Less sales taxes petroleum products trading - - (537,971,800) 1,919,440 (536,052,360) Less commercial discounts petroleum products trading - - (97,813,181) 3,332,967 (94,480,214) Net revenues from petroleum products trading 7,232,844 - 789,594,291 (1,399,418,538) (602,591,403) Revenues from petrochemicals production - 114,380,118 - - 114,380,118 Revenues from petrochemicals trading - 712,159 - - 712,159 Revenues from merchandise sales 204,601 - 77,862,022 - 78,066,623 Revenues from utilities sold 1,226,933 - - (60,405) 1,166,528 Revenues from transportation fees - - 1,757,658 - 1,757,658 Revenues from rents and other services 1,835,311 - 9,316,994 (4,256,132) 6,896,173 Total Net Revenues 1,348,459,397 115,092,277 878,530,965 (696,916,925) 1,645,165,714

Consolidation RON (supplementary info – see Note 2(e)) Refining Petrochemicals Marketing Consolidated adjustments Gross revenues from petroleum products production 7,779,895,443 - - 730,115,642 8,510,011,085 Less sales taxes from petroleum products production (2,237,397,352) - - 2,197,878,544 (39,518,808) Net revenues from petroleum products production 5,542,498,091 - - 2,927,994,186 8,470,492,277 Gross revenues from petroleum products trading 29,962,056 - 5,904,633,635 (5,818,849,389) 115,746,302 Less sales taxes petroleum products trading - - (2,228,548,182) 7,951,279 (2,220,596,903) Less commercial discounts petroleum products trading - - (405,191,102) 13,806,817 (391,384,285) Net revenues from petroleum products trading 29,962,056 - 3,270,894,351 (5,797,091,293) (2,496,234,886) Revenues from petrochemicals production - 473,819,638 - - 473,819,638 Revenues from petrochemicals trading - 2,950,119 - - 2,950,119 Revenues from merchandise sales 847,560 - 322,543,426 - 323,390,986 Revenues from utilities sold 5,082,570 - - (250,228) 4,832,342 Revenues from transportation fees - - 7,281,098 - 7,281,098 Revenues from rents and other services 7,602,776 - 38,595,647 (17,631,027) 28,567,396 Total Net Revenues 5,585,993,053 476,769,757 3,639,314,522 (2,886,978,362) 6,815,098,970

English translation is for information purposes only. Romanian language text is the official text for submission. 58 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

20. REVENUES FROM CONTRACTS WITH CUSTOMERS (continued)

2020

Consolidation USD Refining Petrochemicals Marketing Consolidated adjustments Gross revenues from petroleum products production 1,192,857,592 - - 159,787,579 1,352,645,171 Less sales taxes from petroleum products production (372,249,822) - - 371,718,210 (531,612) Net revenues from petroleum products production 820,607,770 - - 531,505,789 1,352,113,559 Gross revenues from petroleum products trading 6,714,666 - 987,051,193 (940,275,724) 53,490,135 Less sales taxes petroleum products trading - - (397,476,241) 1,406,276 (396,069,965) Less commercial discounts petroleum products trading - - (75,466,517) 2,513,439 (72,953,078) Net revenues from petroleum products trading 6,714,666 - 514,108,435 (936,356,009) (415,532,908) Revenues from petrochemicals production - 62,543,841 - - 62,543,841 Revenues from petrochemicals trading - 12,337 - - 12,337 Revenues from merchandise sales 152,955 - 49,060,752 - 49,213,707 Revenues from utilities sold 1,016,162 - - (57,087) 959,075 Revenues from transportation fees - - 1,307,204 - 1,307,204 Revenues from rents and other services 1,743,446 - 7,575,751 (4,036,170) 5,283,027 Total Net Revenues 830,234,999 62,556,178 572,052,142 (408,943,477) 1,055,899,842

Consolidation RON (supplementary info – see Note 2(e)) Refining Petrochemicals Marketing Consolidated adjustments Gross revenues from petroleum products production 4,941,412,575 - - 661,920,046 5,603,332,621 Less sales taxes from petroleum products production (1,542,044,888) - - 1,539,842,685 (2,202,203) Net revenues from petroleum products production 3,399,367,687 - - 2,201,762,731 5,601,130,418 Gross revenues from petroleum products trading 27,815,504 - 4,088,859,567 (3,895,092,187) 221,582,884 Less sales taxes petroleum products trading - - (1,646,545,328) 5,825,498 (1,640,719,830) Less commercial discounts petroleum products trading - - (312,620,047) 10,411,921 (302,208,126) Net revenues from petroleum products trading 27,815,504 - 2,129,694,192 (3,878,854,768) (1,721,345,072) Revenues from petrochemicals production - 259,087,861 - - 259,087,861 Revenues from petrochemicals trading - 51,106 - - 51,106 Revenues from merchandise sales 633,616 - 203,234,165 - 203,867,781 Revenues from utilities sold 4,209,451 - - (236,483) 3,972,968 Revenues from transportation fees - - 5,415,093 - 5,415,093 Revenues from rents and other services 7,222,225 - 31,382,549 (16,719,834) 21,884,940 Total Net Revenues 3,439,248,483 259,138,967 2,369,725,999 (1,694,048,354) 4,374,065,095

Total Revenues increased mainly due to the volatility of oil and gas market environment resulting in higher quotations vs same period last year alongside a higher volumes sold as result of worldwide market constraints being eased.

There is no significant time difference between payment and transfer of control over goods and/or services.

English translation is for information purposes only. Romanian language text is the official text for submission. 59 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

21. COST OF SALES

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 USD USD RON RON (supplementary info – see Note 2(e)) Crude oil and other raw materials 1,344,969,543 844,170,938 5,571,536,332 3,496,978,112 Consumables and other materials 6,442,972 5,104,885 26,690,012 21,146,986 Utilities 48,070,323 38,862,130 199,131,313 160,986,374 Staff costs 14,203,051 13,322,945 58,836,139 55,190,300 Transportation 107,475 87,405 445,215 362,075 Maintenance and repairs 11,958,901 9,847,736 49,539,747 40,794,246 Insurance 798,190 685,229 3,306,502 2,838,561 Environmental expenses 3,939,947 4,698,302 16,321,230 19,462,716 Other 6,171,345 4,481,928 25,564,797 18,566,387 Cash production cost 1,436,661,747 921,261,498 5,951,371,287 3,816,325,757 Depreciation and amortization 43,766,767 31,347,084 181,303,832 129,855,295 Production costs 1,480,428,514 952,608,582 6,132,675,119 3,946,181,052 Plus: Change in inventories (64,632,171) 64,475,050 (267,738,768) 267,087,895 Less: Own production of property, plant & (154,876) (4,705,016) (641,574) (19,490,529) equipment Cost of petroleum products trading 34,367,570 48,816,170 142,367,659 202,220,984 Cost of petrochemicals trading 637,518 12,306 2,640,918 50,978 Cost of merchandise sold 63,575,924 38,840,193 263,363,265 160,895,500 Cost of utilities resold 671,036 526,740 2,779,767 2,182,020 Realized (gains)/losses on derivatives 17,757,355 (51,611,696) 73,559,843 (213,801,451) Total 1,532,650,870 1,048,962,329 6,349,006,229 4,345,326,449

22. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES, INCLUDING LOGISTIC COSTS

June 30, June 30, 2021 June 30, 2020 June 30, 2020 2021 USD USD RON RON (supplementary info – see Note 2(e)) Staff costs 11,478,221 13,282,407 47,548,530 55,022,371 Utilities 2,688,672 3,418,491 11,137,824 14,161,099 Transportation 30,349,327 23,383,029 125,722,087 96,864,198 Professional and consulting fees 16,368,972 17,991,061 67,808,467 74,527,970 Royalties and rents 2,840,088 1,642,817 11,765,065 6,805,369 Consumables 132,317 478,711 548,123 1,983,060 Marketing 1,348,033 1,377,903 5,584,227 5,707,963 Taxes 1,013,219 1,048,236 4,197,260 4,342,318 Communications 436,319 456,970 1,807,451 1,892,998 Insurance 466,373 700,754 1,931,950 2,902,873 IT related expenditures 4,043,310 4,270,782 16,749,412 17,691,714 Environmental expenses 111,937 (519,953) 463,699 (2,153,905) Maintenance and repairs 4,617,928 5,285,510 19,129,767 21,895,225 Other expenses 7,855,553 8,820,799 32,541,628 36,540,160 Costs before depreciation 83,750,269 81,637,517 346,935,490 338,183,413 Depreciation and amortisation 20,275,672 26,720,940 83,991,971 110,691,494 Total 104,025,941 108,358,457 430,927,461 448,874,907

English translation is for information purposes only. Romanian language text is the official text for submission. 60 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

23. OTHER OPERATING INCOME / (EXPENSES), NET

June 30, June 30, 2021 June 30, 2020 June 30, 2020 2021 USD USD RON RON (supplementary info – see Note 2(e)) Net gain /(loss) on disposal of assets 245,736 93,927 1,017,961 389,093 Reverse for impairment of tangible assets, net - (8,126) - (33,662) Provision for receivables and write-off, net 1,266,871 (385,956) 5,248,013 (1,598,823) Provision for inventories and write-off, net (4,865,196) 4,173,457 (20,154,074) 17,288,546 Other provisions, net (1,367,384) (2,660,882) (5,664,388) (11,022,704) Other, net (4,963,184) 132,652 (20,559,990) 549,511 Total (9,683,157) 1,345,072 (40,112,478) 5,571,961

The movement in provisions is presented in Notes 5, 9 and 10.

English translation is for information purposes only. Romanian language text is the official text for submission. 61 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

24. FINANCIAL COST, FINANCE INCOME AND FOREIGN EXCHANGE

June 30, June 30, 2021 June 30, 2020 June 30, 2020 2021 USD USD RON RON Finance cost (supplementary info – see Note 2(e)) Late payment interest (707,626) (8,038) (2,931,341) (33,297) Interest expense (16,533,243) (13,496,335) (68,488,959) (55,908,568) Interest expense shareholders (38,253) (272,190) (158,463) (1,127,547) Unwinding of discount - lease (2,669,088) (2,223,275) (11,056,697) (9,209,917) Other financial expense (8,260,673) (14,048,512) (34,219,838) (58,195,961) (28,208,883) (30,048,350) (116,855,298) (124,475,290) Finance income Interest income 7,092,453 5,519,426 29,380,486 22,864,222 Other financial income 1,655,240 1,152,731 6,856,832 4,775,188 Total 8,747,693 6,672,157 36,237,318 27,639,410

Finance income/(cost) net (19,461,190) (23,376,193) (80,617,980) (96,835,880) Unrealized net foreign exchange 6,350,562 (3,540,707) 26,307,203 (14,667,380) (losses)/gains Realized net foreign exchange (losses)/gains (5,772,866) 426,278 (23,914,096) 1,765,857 Foreign exchange gain/(loss), net 577,696 (3,114,429) 2,393,107 (12,901,523) Total (18,883,494) (26,490,622) (78,224,873) (109,737,403)

English translation is for information purposes only. Romanian language text is the official text for submission. 62 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

25. INCOME TAX a. The current income tax rate in 2021 was 16%, the same as in 2020.

June 30, June 30, 2021 June 30, 2021 June 30, 2020 2020 USD USD RON RON Tax expense comprises: (supplementary info – see Note 2(e)) Current tax expense 2,746,759 (95,383) 11,378,449 (395,124) Total tax expense/(income) 2,746,759 (95,383) 11,378,449 (395,124)

b) The deferred tax assets and liabilities details are disclosed in Note 15.

26. OPERATING SEGMENT INFORMATION a. Operating Segments

For management purposes the Group is currently organized in 3 segments – refining, petrochemicals and marketing. Refining comprises Petromidia and Vega refineries, Petrochemicals comprises petrochemical division of Rompetrol Rafinare SA and Rompetrol Petrochemicals operations and Marketing comprises the operations of Rompetrol Downstream, Rom Oil, Rompetrol Logistics, Rompetrol Gas and Rompetrol Quality Control SRL.

For the income statement, management analysis is made separately for the 3 segments: Refining, Petrochemicals and Marketing. The balance sheet is analyzed by management at cumulated level for Refining and Petrochemicals segments. As a result, the balance sheet information for segments Refining and Petrochemicals are presented together.

English translation is for information purposes only. Romanian language text is the official text for submission. 63 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

26. OPERATING SEGMENT INFORMATION (continued)

2021 Income Statement information Amounts not allocated Impact from between transactions USD Refining Petrochemicals Marketing Consolidated Refining & between Petrochemicals segments segments

Net revenues ''external customers'' 655,524,572 115,092,277 - 874,548,865 - 1,645,165,714 Net revenues "Inter segment” 692,934,825 - - 3,982,100 (696,916,925) - Cost of sales (1,348,336,164) (105,380,811) - (792,171,789) 713,237,894 (1,532,650,870) Gross margin 123,233 9,711,466 - 86,359,176 16,320,969 112,514,844 Selling, general and administrative expenses (24,645,667) (4,225,515) - (58,425,357) (16,729,402) (104,025,941) Other operating income/(expenses), net (10,738,568) (2,197) - 923,450 134,158 (9,683,157) Operating margin (EBIT) (35,261,002) 5,483,754 - 28,857,269 (274,275) (1,194,254) Financial expenses, net - - (16,444,034) (3,015,234) (1,922) (19,461,190) Net foreign exchange result - - 8,312,226 (7,734,530) - 577,696 Profit/(loss) before income tax (35,261,002) 5,483,754 (8,131,808) 18,107,505 (276,197) (20,077,748) Income tax - - - (2,746,759) - (2,746,759) Net Profit/(Loss) (35,261,002) 5,483,754 (8,131,808) 15,360,746 (276,197) (22,824,507)

Amounts not allocated Impact from transactions RON (supplementary info – see Note 2(e)) Refining Petrochemicals between Refining & Marketing Consolidated between segments Petrochemicals segments

Net revenues ''external customers'' 2,715,510,540 476,769,757 - 3,622,818,673 - 6,815,098,970 Net revenues "Inter segment” 2,870,482,513 - - 16,495,849 (2,886,978,362) - Cost of sales (5,585,482,559) (436,540,010) - (3,281,571,636) 2,954,587,976 (6,349,006,229) Gross margin 510,494 40,229,747 - 357,742,886 67,609,614 466,092,741 Selling, general and administrative expenses (102,094,676) (17,504,196) - (242,027,041) (69,301,548) (430,927,461) Other operating income/(expenses), net (44,484,518) (9,101) - 3,825,392 555,749 (40,112,478) Operating margin (EBIT) (146,068,700) 22,716,450 - 119,541,237 (1,136,185) (4,947,198) Financial expenses, net - - (68,119,411) (12,490,607) (7,962) (80,617,980) Net foreign exchange result - - 34,433,397 (32,040,290) - 2,393,107 Profit/(loss) before income tax (146,068,700) 22,716,450 (33,686,014) 75,010,340 (1,144,147) (83,172,071) Income tax - - - (11,378,449) - (11,378,449) Net Profit/(Loss) (146,068,700) 22,716,450 (33,686,014) 63,631,891 (1,144,147) (94,550,520)

For additional information regarding operating segments and streams please also see Note 20 Revenues from contract with customers.

English translation is for information purposes only. Romanian language text is the official text for submission. 64 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

26. OPERATING SEGMENT INFORMATION (continued)

2021 Statement of financial position information

Refining & Consolidation USD Marketing Consolidated Petrochemicals adjustments Total non current assets 1,628,088,865 259,578,057 (596,762,582) 1,290,904,340 Total current assets 658,937,874 514,674,524 (175,359,434) 998,252,964 TOTAL ASSETS 2,287,026,739 774,252,581 (772,122,016) 2,289,157,304 Total equity 699,330,821 293,032,640 (594,653,389) 397,710,072 Total non-current liabilities 232,334,502 174,052,937 (313,984) 406,073,455 Total current liabilities 1,355,361,416 307,167,004 (177,154,643) 1,485,373,777 TOTAL LIABILITIES AND SHAREHOLDERS' 2,287,026,739 774,252,581 (772,122,016) 2,289,157,304 EQUITY Capital expenditure 5,762,632 2,210,253 - 7,972,885

RON (supplementary info – see Note 2(e)) Refining & Consolidation RON Marketing Consolidated Petrochemicals adjustments Total non current assets 6,744,358,123 1,075,302,096 (2,472,089,002) 5,347,571,217 Total current assets 2,729,650,143 2,132,039,216 (726,426,456) 4,135,262,903 TOTAL ASSETS 9,474,008,266 3,207,341,312 (3,198,515,458) 9,482,834,120 Total equity 2,896,977,928 1,213,887,706 (2,463,351,668) 1,647,513,966 Total non-current liabilities 962,445,675 721,014,292 (1,300,680) 1,682,159,287 Total current liabilities 5,614,584,663 1,272,439,314 (733,863,110) 6,153,160,867 TOTAL LIABILITIES AND SHAREHOLDERS' 9,474,008,266 3,207,341,312 (3,198,515,458) 9,482,834,120 EQUITY Capital expenditure 23,871,703 9,155,972 - 33,027,675

English translation is for information purposes only. Romanian language text is the official text for submission. 65 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

26. OPERATING SEGMENT INFORMATION (continued)

2020 Income Statement information Amounts not allocated Impact from transactions USD Refining Petrochemicals between Refining & Marketing Consolidated between segments Petrochemicals segments

Net revenues ''external customers'' 424,627,877 62,556,178 - 568,715,787 - 1,055,899,842 Net revenues "Inter segment” 405,607,122 - - 3,336,355 (408,943,477) - Cost of sales (883,630,839) (78,774,901) - (509,051,812) 422,495,223 (1,048,962,329) Gross margin (53,395,840) (16,218,723) - 63,000,330 13,551,746 6,937,513 Selling, general and administrative (35,129,714) (6,965,225) - (55,220,531) (11,042,987) (108,358,457) expenses Other operating income/(expenses), net 1,635,175 (1,322) - (288,781) - 1,345,072 Operating margin (EBIT) (86,890,379) (23,185,270) - 7,491,018 2,508,759 (100,075,872) Financial expenses, net - - (21,056,430) (2,317,909) (1,854) (23,376,193) Net foreign exchange result - - (3,359,485) 245,056 - (3,114,429) Profit/(loss) before income tax (86,890,379) (23,185,270) (24,415,915) 5,418,165 2,506,905 (126,566,494) Income tax - - - 95,383 - 95,383 Net Profit/(Loss) (86,890,379) (23,185,270) (24,415,915) 5,513,548 2,506,905 (126,471,111)

Amounts not allocated Impact from transactions RON (supplementary info – see Note 2(e)) Refining Petrochemicals between Refining & Marketing Consolidated between segments Petrochemicals segments

Net revenues ''external customers'' 1,759,020,980 259,138,967 - 2,355,905,148 - 4,374,065,095 Net revenues "Inter segment” 1,680,227,503 - - 13,820,851 (1,694,048,354) - Cost of sales (3,660,440,751) (326,325,027) - (2,108,747,131) 1,750,186,460 (4,345,326,449) Gross margin (221,192,268) (67,186,060) - 260,978,868 56,138,106 28,738,646 Selling, general and administrative expenses (145,524,840) (28,853,445) - (228,751,050) (45,745,572) (448,874,907) Other operating income/(expenses), net 6,773,712 (5,476) - (1,196,275) - 5,571,961 Operating margin (EBIT) (359,943,396) (96,044,981) - 31,031,543 10,392,534 (414,564,300) Financial expenses, net - - (87,226,261) (9,601,938) (7,681) (96,835,880) Net foreign exchange result - - (13,916,667) 1,015,144 - (12,901,523) Profit/(loss) before income tax (359,943,396) (96,044,981) (101,142,928) 22,444,749 10,384,853 (524,301,703) Income tax - - - 395,124 - 395,124 Net Profit/(Loss) (359,943,396) (96,044,981) (101,142,928) 22,839,873 10,384,853 (523,906,579)

English translation is for information purposes only. Romanian language text is the official text for submission. 66 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

26. OPERATING SEGMENT INFORMATION (continued)

In total net revenues are included customers that own more than 10% of total sales (i.e. KazMunayGas Trading AG), their value amounting USD 322 million in H1 2021 and USD 174 million in H1 2020.

2020 Statement of financial position information

Refining & Consolidation USD Marketing Consolidated Petrochemicals adjustments Total non current assets 1,672,649,263 266,646,480 (596,396,951) 1,342,898,792 Total current assets 560,066,827 442,679,203 (146,176,613) 856,569,417 TOTAL ASSETS 2,232,716,090 709,325,683 (742,573,564) 2,199,468,209 Total equity 738,211,082 277,463,169 (594,377,191) 421,297,060 Total non-current liabilities 233,554,480 172,604,754 (313,986) 405,845,248 Total current liabilities 1,260,950,528 259,257,760 (147,882,387) 1,372,325,901 TOTAL LIABILITIES AND SHAREHOLDERS' 2,232,716,090 709,325,683 (742,573,564) 2,199,468,209 EQUITY Capital expenditure 111,081,509 11,403,743 (4,876) 122,480,376

Refining & Consolidation RON (supplementary info – see Note 2(e)) Marketing Consolidated Petrochemicals adjustments Total non current assets 6,928,949,571 1,104,583,044 (2,470,574,376) 5,562,958,239 Total current assets 2,320,076,831 1,833,798,598 (605,536,615) 3,548,338,814 TOTAL ASSETS 9,249,026,402 2,938,381,642 (3,076,110,991) 9,111,297,053 Total equity 3,058,039,407 1,149,391,178 (2,462,207,518) 1,745,223,067 Total non-current liabilities 967,499,433 715,015,193 (1,300,686) 1,681,213,940 Total current liabilities 5,223,487,562 1,073,975,271 (612,602,787) 5,684,860,046 TOTAL LIABILITIES AND SHAREHOLDERS' 9,249,026,402 2,938,381,642 (3,076,110,991) 9,111,297,053 EQUITY Capital expenditure 460,155,154 47,240,001 (20,198) 507,374,957

 Inter - segment revenues are eliminated on consolidation.  Transfer pricing between operating segments is determined based on market rules agreed between the segments. These transfer prices take in to account the latest Crude/Refined products prices on markets adjusted by various margins / discounts taking into account quantity, quality, payment terms, transportation costs etc. b. Geographical segments

All the Group’s production facilities are located in Romania. The following table provides an analysis of the Group’s net revenues by geographical market (based on customers’ location):

2021 2020 2021 2020 USD USD RON RON Romania 1,168,106,434 783,719,064 4,838,880,903 3,246,556,223 Export 477,059,280 272,180,778 1,976,218,069 1,127,508,873 out of which Petroleum products 426,600,279 247,213,436 1,767,191,657 1,024,081,659 Petrochemical products 50,459,001 24,967,342 209,026,412 103,427,214 Total 1,645,165,714 1,055,899,842 6,815,098,970 4,374,065,095

English translation is for information purposes only. Romanian language text is the official text for submission. 67 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

27. RELATED PARTIES

The ultimate parent of the Group is the “National Welfare Fund Samruk Kazyna” JSC, an entity with its headquarters in Kazakhstan, fully owned by State of Kazakhstan. The related parties and the nature of relationship is presented below:

Name of related party Nature of relationship

KMG International N.V. Majority Shareholder Byron Shipping SRL Company owned by KMG International Group Byron Shipping LTD Company owned by KMG International Group Global Security Sistem S.A. Company owned by KMG International Group Global Security Systems Fire Services SRL Company owned by KMG International Group KazMunayGas Engineering B.V. Company owned by KMG International Group KazMunayGas –Engineering LLP Company owned by KMG International Group KazMunayGas Trading AG Company owned by KMG International Group KMG Rompetrol S.R.L Company owned by KMG International Group KMG Rompetrol Services Center Company owned by KMG International Group KMG Rompetrol Development S.R.L. Company owned by KMG International Group Midia Marine Terminal S.R.L. Company owned by KMG International Group Oilfield Exploration Business Solutions S.A. Company owned by KMG International Group Palplast S.A. Company owned by KMG International Group Rominserv S.R.L Company owned by KMG International Group Rominserv Valves Iaifo SRL Company owned by KMG International Group Rompetrol Bulgaria JSC Company owned by KMG International Group Rompetrol Energy S.A. Company owned by KMG International Group Rompetrol Financial Group S.R.L. Company owned by KMG International Group Rompetrol Georgia LTD Company owned by KMG International Group Rompetrol Moldova SA Company owned by KMG International Group Rompetrol Well Services S.A. Company owned by KMG International Group TRG Petrol Anonim Sirketi Company owned by KMG International Group Rompetrol Ukraine LTD Company owned by KMG International Group Fondul de Investitii in Energie Kazah - Roman S.A. Company owned by KMG International Group Agat LTD Company owned by KMG International Group Rompetrol Drilling S.R.L. Company owned by KMG International Group Benon Rompetrol LLC Company owned by KMG International Group The Romanian State and the Romanian Authorities Significant shareholder Uzina Termoelectrica Midia S.A. Associate of KMG International Group

English translation is for information purposes only. Romanian language text is the official text for submission. 68 ROMPETROL RAFINARE SA NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 June 2021 (Amounts in US dollars represent the functional and presentation currency. Amounts in RON are supplementary financial information (see Note 2e))

27. RELATED PARTIES (continued)

Receivables and other assets 30-Jun-21 31-Dec-20 30-Jun-21 31-Dec-20 Name of related party USD USD RON RON (supplementary info – see Note 2(e)) KazMunayGas Trading AG 8,619,398 2,735,609 35,705,856 11,332,260 Rominserv S.R.L. 554,568 2,588,730 2,297,298 10,723,814 KMG International N.V. 71,567,570 80,121,018 296,468,659 331,901,317 KMG Rompetrol S.R.L 843,847 1,124,212 3,495,636 4,657,048 KMG Rompetrol SRL - cash pooling 243,352,396 238,725,868 1,008,087,300 988,921,908 Oilfield Exploration Business 1,142,619 1,181,252 4,733,299 4,893,336 Solutions S.A. Rompetrol Well Services S.A. 65,526 52,131 271,441 215,953 KMG Rompetrol Services Center 77,963 28,044 322,962 116,172 Palplast S.A. 677,397 705,993 2,806,117 2,924,576 Rompetrol Bulgaria JSC 1,540,840 1,341,387 6,382,930 5,556,696 Rompetrol Moldova SA 902,779 392,737 3,739,762 1,626,913 Rompetrol Financial Group S.R.L. 2,642 2,713 10,944 11,239 KazMunayGas Engineering B.V. 3,573 3,573 14,801 14,801 Rompetrol Energy S.A. 1,849 - 7,659 - Byron Shipping SRL 1,618 707 6,703 2,929 Rompetrol Albania Wholesale Sh.A. 17,705 18,285 73,343 75,746 Midia Marine Terminal S.R.L. 193,914 227,374 803,289 941,897 Rominserv Valves Iaifo SRL 6,541 - 27,096 - KazMunayGas –Engineering LLP 168,167 168,167 696,632 696,632 Rompetrol Georgia LLC 50 - 207 - Uzina Termoelectrica Midia S.A. 1,402,796 2,261,869 5,811,082 9,369,792 KMG Rompetrol Development S.R.L. 8,336,040 34,532,046 - Global Security Sistem S.A. 233,245 219,425 966,217 908,968 Total 339,713,043 331,899,094 1,407,261,279 1,374,891,997

Payables, loans and other liabilities 30-Jun-21 31-Dec-20 30-Jun-21 31-Dec-20 Name of related party USD USD RON RON (supplementary info – see Note 2(e)) KazMunayGas Trading AG 591,480,307 470,169,204 2,450,207,172 1,947,675,928 Rominserv S.R.L. 12,016,346 27,298,020 49,777,713 113,082,048 KMG International N.V. 5,778,395 8,001,539 23,937,001 33,146,375 KMG International N.V.- Short term debt - - 10,655,710 - 44,141,279 principal KMG International N.V.- Short term debt - - 1,686,454 - 6,986,136 interest KMG Rompetrol S.R.L 3,086,881 6,932,425 12,787,405 28,717,571 KMG Rompetrol SRL - cash pooling 519,579,549 411,289,453 2,152,358,282 1,703,766,559 Oilfield Exploration Business Solutions S.A. 241,066 248,452 998,616 1,029,212 Rompetrol Well Services S.A. 87,006 100,342 360,422 415,667 KMG Rompetrol Services Center 1,202,774 1,649,652 4,982,491 6,833,683 Rompetrol Bulgaria JSC 127,388 137,134 527,705 568,078 Rompetrol Moldova SA 6,525,833 3,439,765 27,033,263 14,249,227 Byron Shipping SRL 2,305 2,379 9,548 9,855 Rompetrol Energy S.A. 48,012 - 198,890 - Palplast S.A. 830 3,438 - Midia Marine Terminal S.R.L. 8,612,868 8,410,459 35,678,806 34,840,326 Rominserv Valves Iaifo SRL 29,278 7,575 121,284 31,379 Rompetrol Georgia LLC 50 50 207 207 Uzina Termoelectrica Midia S.A. 6,939,721 8,953,547 28,747,794 37,090,068 Rompetrol Georgia LLC - 17 - 70 KMG Rompetrol Development S.R.L. 2,491,952 93,751 10,322,911 388,364 Global Security Sistem S.A. 389,657 671,723 1,614,154 2,782,613 Global Security Systems Fire Services SRL 288,918 212,088 1,196,843 878,575 TRG Petrol Anonim Sirketi 2,538 2,538 10,514 10,514 Total 1,158,931,674 959,962,277 4,800,874,459 3,976,643,734

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27. RELATED PARTIES (continued)

During 2021 and 2020, Rompetrol Rafinare Group entered into the following transactions with related parties: Sales and other revenues Name of related party Nature of transaction 30-Jun-21 30-Jun-20 30-Jun-21 30-Jun-20 USD USD RON RON (supplementary info – see Note 2(e)) KazMunayGas Trading AG Fuel 322,448,308 173,927,382 1,335,742,116 720,494,180 Fuel, utilities and other Rominserv S.R.L. 388,005 416,677 1,607,311 1,726,084 services KMG International N.V. Interest 1,999,481 8,282,850 - KMG Rompetrol S.R.L Fuel and other services 51,015 39,656 211,330 164,275 Oilfield Exploration Business Fuel 2,586 1,323 10,713 5,481 Solutions S.A. Rompetrol Well Services Fuel and other services 284,850 182,321 1,179,991 755,265 S.A. Palplast S.A. Fuel and other services 6,073 5,070 25,157 21,002 Rompetrol Bulgaria JSC Fuel 23,298,647 14,670,742 96,514,645 60,773,549 Rompetrol Moldova SA Fuel 76,618,749 50,669,358 317,393,168 209,897,816 KMG Rompetrol Services Rent and other services 72,493 65,892 300,302 272,958 Center Midia Marine Terminal S.R.L. Fuel, rent and other services 214,222 139,084 887,415 576,155 Byron Shipping SRL Fuel and other services 8,840 6,971 36,620 28,877 Rominserv Valves Iaifo SRL Fuel and other services 2,484 4,090 10,290 16,943 Uzina Termoelectrica Midia Utilities and other serices 8,424,557 8,595,410 34,898,727 35,606,486 S.A. Rompetrol Energy S.A. Other services 3,381 444 14,006 1,839 Global Security Sistem S.A. Fuel 40,007 34,891 165,729 144,536 KMG Rompetrol PPE and other services 2,025,659 2,627,252 8,391,292 10,883,391 Development S.R.L. Total 435,889,357 251,386,563 1,805,671,662 1,041,368,837

Purchases and other costs

Name of related party Nature of transaction 30-Jun-21 30-Jun-20 30-Jun-21 30-Jun-20

USD USD RON RON (supplementary info – see Note 2(e)) Purchase of crude oil and KazMunayGas Trading AG 1,296,701,269 744,498,277 5,371,585,007 3,084,084,112 other raw materials Acquisition and Rominserv S.R.L. 21,410,385 92,807,980 88,692,520 384,457,057 maintenance of fixed assets KMG International N.V. Management services 6,000,482 6,797,954 24,856,997 28,160,524 KMG Rompetrol S.R.L Management services 14,795,939 16,112,487 61,292,177 66,745,977 Oilfield Exploration Business Management services 26,757 20,524 110,841 85,021 Solutions S.A. Rompetrol Financial Group Environmental services - 14,629 - 60,601 S.R.L. Rompetrol Well Services S.A. Other services 19 53 79 220 Rompetrol Bulgaria JSC Sales intermediary services 26,282 108,873 - KMG Rompetrol Services Center Shared services 3,344,977 3,450,193 13,856,567 14,292,425 Midia Marine Terminal S.R.L. Handling services/Transit 6,911,330 7,480,007 28,630,185 30,985,929 Rominserv Valves Iaifo SRL Valves 15,720 47,457 65,120 196,591 Uzina Termoelectrica Midia S.A. Acquisition of utilities 14,785,121 12,637,815 61,247,364 52,352,149 KMG Rompetrol Development Retail 4,363,993 2,578,033 18,077,841 10,679,502 S.R.L. Security and protection Global Security Sistem S.A. 1,638,694 1,502,663 6,788,290 6,224,781 services Global Security Systems Fire Fire protection services 945,429 406,795 3,916,440 1,685,148 Services SRL

Total 1,370,966,397 888,354,867 5,679,228,301 3,680,010,037

The nature of sale transactions consists in sale of petroleum products. Sales to related parties include sales taxes.

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27. RELATED PARTIES (continued)

The Ministry of Public Finance of Romania (“MFPR”) held 44.6959% of the share in Rompetrol Rafinare SA from September 2010 until July 2012. Starting July 2012, through a Government Ordinance, the shareholder became Ministry of Economy Trade and Business Environment (“MECMA”) until May 2013, when following MECMA reorganization the new holder became Ministry of Economy (“ME”). Later it was renamed the Ministry of Energy, Small and Medium Enterprises and Business Environment. As at December 31, 2019 it is named the Ministry of Energy, and during 2020 it was renamed Ministry of Economy, Energy and Business Environment. Its current name is Ministry of Energy according to the OUG 212/2020.

As a result MFPR, MECMA, ME and Other Authorities are considered to be a related party of the Group. No entities in the Group have had any transactions during the period since MPFR, MECMA and ME became a related party or had balances as of period end, other than those arising from Romanian fiscal and legislative requirements, with MFPR, MECMA, ME and Other Authorities in Romania.

28. EARNINGS PER SHARE

The calculation of the basic earnings per share attributable to the ordinary equity holders of the parent is based on the following data:

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 USD USD RON RON Earnings Profit/(Loss) for the year attributable to ordinary equity holders of the parent entity (21,404,393) (126,054,266) (88,667,698) (522,179,797) Number of shares Weighted average number of shares for the purpose of basic earnings per share (see Note 12) 44,109,205,726 44,109,205,726 44,109,205,726 44,109,205,726 Earnings per share (US cents/share)

Basis (0.0485) (0.2858) (0.2009) (1.1839)

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29. CONTINGENCIES

Rompetrol Rafinare SA- Distressed Assets - Hybrid Conversion

In accordance with the requirements of EGO 118/2003 and the Issuing Convention, Rompetrol Rafinare S.A. undertook the following transactions in relations to bonds: 1) the Extraordinary General Meeting of the Shareholders as of 30 June 2010 approved, the increase of the Company’s share capital by USD 100.2 million; 2) On 9 August 2010, Rompetrol Rafinare S.A. redeemed 2,160,000 Bonds in aggregate amount of EUR 54 million; 3) On 30 September 2010, the Extraordinary General Meeting of the Shareholders of Rompetrol Rafinare S.A. approved conversion of the unredeemed Bonds into shares, the corresponding share capital increase and the exact numbers of shares to be received by the Romanian Ministry of Public Finance for the Bonds it held. The number of shares was calculated based on the conversion rate of the bonds into shares indicated by the EGO 118/2003 and the Issuing Convention.

The Ministry of Public Finance publicly took an adverse position against such course of action and challenged it in various course procedures.

On 10 September 2010 the National Agency of Fiscal Administration (“ANAF”) issued a decision for establishment of a precautionary seizure on all the participations held by Rompetrol Rafinare S.A. and its affiliates as well as on all movable and immovable assets of Rompetrol Rafinare S.A. except inventories. This measure is still in force and it is challenged by the Group. By now the seizure has not produced direct effects on the Company’s recurring operations.

On 15 February 2013 the Group and the Office of the State Ownership and Privatisation in Industry (“OPSPI”), representing the Romanian State, concluded a memorandum of understanding aiming at the amiable settlement of the Litigations. As a result of the Memorandum, the parties agreed the suspension of the court proceedings, in order to allow the time to implement the Memorandum, which was acknowledged by the court on 18 February 2013.

On 22 January 2014, the Memorandum of Understanding was approved by Government Decision no.35/2014 pursuant to which the Ministry of Public Finances has been authorized and mandated to pursue all procedural actions required for the withdrawal of the claims and the termination of all Litigations, including the Main Claim, without hearing of the merits thereof. The Memorandum of Understanding includes the following aspects: • OPSPI will sell and the Group will acquire shares owned by OPSPI and representing 26.6959% of Rompetrol Rafinare S.A.’s share capital for a cash consideration of 200 million USD; • The KMGI Group will invest in energy project related to its core activities an amount estimated at 1 USD billion over 7 years; • The Ministry of Finance will renounce all cases against the GMS decisions related to the conversion and will cancel the forced execution title.

Following the hearing on 24 March 2014 it is confirmed that the court case is closed following the Ministry of Finance renouncing all the court actions that were in progress that are mentioned above.

Following this decision, Rompetrol submitted to the Romanian authorities a requirement for the annulment of the seizure. As long as the court decision confirmed that the state is a shareholder of

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29. CONTINGENCIES (continued)

Petromidia and therefore there is no amount payable by the Refinery to the state, there is no object for the seizure. The Group reverted again in February 2020 to ANAF for lifting the seizure and pointed out there is no legal rationale to be maintained. Besides all of these, the seizure is still in place.

Contingencies – risk management and internal control

The Group commitment to integrity, responsibility and ethical conduct is particularly important in the area of bribery and corruption prevention and detection.

The Group is committed to conducting its business fairly, honorably, with integrity and honesty and in compliance with all applicable laws. The Group adopts an approach of zero -tolerance to bribery and corruption in all its business dealings and relationships, wherever it operates.

Whistleblowing incidents are taken very seriously by the Group and its directors. Any complaints or allegations received are investigated properly by the assigned departments. The Group has established and maintained an open channel to handle and discuss internal reports concerning finance, internal control and fraud to ensure that all reports will receive enough attention. The internal investigations conducted during 2021 did not reveal any cases of ethical misconduct and non-compliance with applicable laws and regulations.

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30. LEGAL MATTERS

Litigation with the State involving criminal charges

The freezing of the assets does not impact the inventories, receivables and the bank account of Rompetrol Rafinare and this allows to the company to continue normally the day by day operations.

Meanwhile, the companies also challenged on 30 May 2016 the Orders to the superior prosecutor. The submission was rejected in December 2016.

Considering the nature of the allegations submitted by DIICOT, the KMGI companies applied for a motion of disjoining (cerere de disjungere in Romanian) in order to have two different cases which shall settle the allegations for Rompetrol Rafinare S.A.’ privatization and post-privatization period – one file and a second one for the allegations related to the issuance of the bonds by Rompetrol Rafinare S.A. (OUG 118/2003). No reply received yet from DIICOT on this topic.

Since the KMGI companies had no capacity in the file till 2016 and it seems the entire process (with minor exceptions) of gathering the evidences by DIICOT have been performed before May 2016, the Companies submitted on 7 April 2017 their own application for, on the one hand, evidences to be attached to the file in order to defend and on the other hand to be redone some evidences (such as expertise report) performed before 2016. No reply received yet from DIICOT on this topic.

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30. LEGAL MATTERS (continued) intra-companies transactions and budgetary taxes and duties.

A statement of defense against the July 2017 Ordinance has been submitted on 22 December 2017 as well a challenge against it submitted in front of the higher prosecutor on 29 September 2017.

On 12 April, 2018 DIICOT issued an Ordinance which cancelled the previous Ordinances dated 17 July 2017, 18 September 2017 and 6 December 2017 issued by the in-charge prosecutor of the file by which it was an extension of the inquiry to various individuals and/or some of the criminal offences have been approached in a worse manner for some of the defendants. Considering that those 3 ordinances cancelled have as background the April 2016 Ordinance issued by in-charge prosecutor by which the freezing orders were imposed over the assets of KMGI, the Group companies KMG International N.V., Rompetrol Rafinare S.A., OEBS have submitted on 20 April 2018 a new challenge in front of the High Court of Cassation and Justice for lifting the asset freeze. On 22 May 2018 the Court rejected again the challenges submitted by the Group. An appeal against this court resolution was submitted to assess from constitutional point of view if a legal provision based on which the challenges were rejected match with the Constitution principles. The first hearing of the appeal was scheduled for 8 October 2018. The court postponed the issuance of a resolution for 22 October 2018 when the Court rejected the forwarding of the case to the Constitutional Court as well.

A new ordinance was issued by DIICOT on 9 November 2018 which changes the legal framework for all deeds investigated in the case.

As of 23 October 2019, all the shares seized back in May 2016 as well as the KMGI assets, and assets of Refinery located on the Vega, Ploiesti Platform and OEBS assets were released from seizure (on 22 April 2019). Therefore, the only assets still remaining under freezing orders are the ones of Rompetrol Rafinare S.A. located in Navodari on the Petromidia refinery Platform. On June 12 and 29 July 2019 the Group submitted another statement of defense by challenging the allegations mentioned within the case.

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30. LEGAL MATTERS (continued)

On 5 December 2019, DIICOT issued another Ordinance by which all criminal charges have been dismissed either on merits or because of passing the status of limitation period.

Both Faber and AAAS and the Group challenged it. The Group challenged the Ordinance on 27 December 2019, requiring having the relevant criminal charges dismissed on merits and not because of passing the status of limitation. On February 7, 2020 DIICOT rejected the Group challenge against December 5, 2019 Ordinance. The group submitted to Supreme Court challenge against the DIICOT rejection and the first hearing is scheduled for April 8, 2020. The last term was schedule for May 29, 2020 and the Court postpone it for 26 June 2020 to allow the parties to prepare their defenses. On 10 July 2020, the Supreme Court issued the final decision according to which all the complaints formulated against the dismissal ordinance issued on December 5, 2019, were rejected as inadmissible.

Faber submitted a civil claim to the Bucharest court against both the Group companies and defendants.

On 25 May, the Bucharest Court rejected the request of Faber for settlement of the stamp fee that Faber should pay for its claim (for the time being is USD 530,000). On 8 July Bucharest Court annulled Faber’s claim as unstamped.

On the other hand, Faber resumed one of the older files by which Faber challenged the increasing of the Rompetrol Rafinare S.A. share capital back in 2003-2005. The hearing was scheduled for 14 April but the case has been suspended due to the emergency enforced since 16 March 2020. The next hearing was settled for 8 June 2021. On July 20, 2021, Ialomita Tribunal rejected Faber's claim.

Also, please note that in December 2020, Faber resumed some files out of those suspended back in 2005/2006. The hearings were scheduled during May 2021. By the Decisions pronounced by the Constanta Tribunal, respectively the Constanta Court of Appeal, the exceptions invoked by Rompetrol Rafinare were admitted, the actions were found as obsolete and the requests for resuming the claims as being formulated by a person without quality. Briefly, the files regard the followings: 1. Cancellation of the statutory documents issued in 2001 when the share capital was increased due to the evaluation of fixed assets. The first stage of the file was won, now Faber is asking to resume the appeal; 2. Cancellation of the statutory documents issued in 2001 regarding the change of the name of the company ( Rompetrol Rafinare S.A.), additional activities and change the Article of Association (“AoA”) according to the company law; 3. Cancellation of the statutory documents issued in 2003 regarding the evaluation of land and increasing the share capital by Rompetrol S.A. (“RPSA”) with this land; 4. Cancellation of the statutory documents issued in 2002 regarding the evaluation of assets (construction, equipment) by which RPSA contributed to Rompetrol Rafinare S.A. share capital increase 5. Cancellation of the statutory documents issued in 2003 regarding the contribution in kind made by Rompetrol Downstream (“DWS”), Rompetrol Well Services (“RWS”), RPSA to Rompetrol Rafinare S.A. share capital; 6. Cancellation of the statutory documents issued in 2001 regarding the share capital increase according to the privatization contract; Plus, Faber submitted a request for the revision of a decision by which the court closed a file being out of date/obsolete (when Court asked the plaintiff to do something and it doesn’t within 6 months /1 year). On April 28, 2021, Constanta Tribunal admitted the exception raised by Rompetrol Rafinare and decided that the revision filed by Faber is late.

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30. LEGAL MATTERS (continued)

Litigation on Tax Assessments received by Rompetrol Rafinare S.A. in 2017

The tax assessment on VAT group and Rompetrol Rafinare S.A. was challenged on 26 February 2018. On 23 January 2019 the fiscal authority D.G.S.C. – A.N.A.F. issued the settling decision upon Company’s administrative appeal by which the fiscal authority decided the followings: i. out of RON 20 million representing VAT (out of which RON 12.8 million related to VAT of Rompetrol Rafinare SA) the fiscal authority rejects the appeal for the amount of RON 11.6 million (RON 11.07 million related to Rompetrol Rafinare SA) and cancels the imposing decision for the amount of RON 8.4 million (RON 1.75 million related to Rompetrol Rafinare SA); ii. rejects the appeal for the amount of RON 6.5 million representing Rompetrol Rafinare SA withholding tax and the related accessories in amount of 0.2 million RON; iii. out of RON 16.3 million representing penalties related to VAT (out of which RON 12 million related to Rompetrol Rafinare SA) the fiscal authority rejects the appeal for the amount of RON 11.05 million (RON 10.6 million related to Rompetrol Rafinare SA) and cancels the imposing decision for the amount of RON 5.3 million (RON 1.4 million related to Rompetrol Rafinare SA); iv. rejects the appeal against the decrease of The Company’s fiscal loss with the amount of RON 140 million.

The Company submitted to Constanta Court of Appeal a claim by which it challenged the amounts rejected by ANAF - DGSC in the Decision regarding the Company’s administrative appeal.

The amounts for which ANAF - DGSC annulled the Decision and ordered a re-verification are not subject of the court claim.

The claim submitted by Rompetrol Rafinare S.A. was registered on 25 July 2019 at the Constanta Court of Appeal, forming Case file no. 393/36/2019, the Court set the first hearing for 13 November 2019. On 11 December 2019 the Court approved Rompetrol Rafinare S.A.’s request to carry out a financial – accounting expertise in the Case file and set the next term for 15 January 2020 when the Court will nominate three experts to perform the expertise and will set the term for the Expertise Report to be filled. On 15 January 2020, the Court nominated the experts and set the next term for 12 February 2020 for the expertise to be initiated. The Court set the next term for 11 March 2020 for the Expertise Report to be issued.

The file was suspended, based on art. 42 point 6 of the Decree of the President of Romania no. 195 / 16.03.2020 regarding the establishment of the state of emergency on the territory of Romania and of the Decision of the Board of Management no. 4/18.03.2020 of the Court of Appeal Constanta, without performing any procedural act. Following the submission of the Expertise Report, ANAF submitted objections, Constanta Court of Appeal establishing a trial term on 24 March 2021 in order to discuss them. On April 28, 2021, Constanta Court of Appeal rejected Rompetrol Rafinare claim as ungrounded. The Company will file an appeal in 15 days after the motivated Decision will be communicated. Regarding this legal matter Rompetrol Rafinare booked a provision in amount of USD 3.3 million.

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30. LEGAL MATTERS (continued)

Litigation regarding CO2 emission allowances

On 28 February 2011, Rompetrol Rafinare S.A. won the court case against The Romanian Government and The Ministry of Environment which required the Romanian authorities to allocate to Rompetrol Rafinare an additional number of 2,577,938 CO2 emission certificates for the entire period 2008 - 2012 (Decision 69/CA/2011). This first decision issued by the Constanta Court of Appeal was challenged by the Ministry of Environment and The Romanian Government, but the appeals were rejected by the High Court of Cassation and Justice on 30 October 2012 and the first court decision became final.

According to the current Romanian and European legislation, the certificates obtained for 2008 – 2012 period may be owned and used also for the next period of 2013 – 2020.

The last hearing was on 25 February 2019 and a decision was released on 19 March 2019. The court admitted Rompetrol Rafinare S.A claim and found liable both the Romanian Government and Ministry of Environmental for damages in amount of EUR 31,806,598.74 in RON at the payment date for failure to observe the final Supreme Court decision issued in October 2012.

Taking in consideration that according with the decision the court awarded a lower amount than the one requested, a final appeal was formulated within the legal time limit. The defendants also submitted final appeals against the same decision of the Court of Appeal Constanta. The Supreme Court set the first hearing for 11 November 2021, but the Company submitted an application at the beginning of October to ask for an earlier hearing considering that already passed 7 years since the Supreme Court decision issued in the favor of the company. It is expected the Supreme Court decision on this topic.

On 17 December 2020 Rompetrol Rafinare received as a partial payment from the Environmental Ministry the amount of RON 30 million.

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30. LEGAL MATTERS (continued)

Litigation between Rompetrol Rafinare and Navodari City Hall

On 19 November 2015, it was finalized the local taxes fiscal audit of the local taxes, performed by Navodari City Hall, for the period of 2012 - 2014. The only non-compliant finding refers to revaluation of buildings made by the company on 31 December 2009 and 31 December 2011, namely that not all fixed assets accounted for in the account 212 “Construction” were revalued, and therefore it was not in accordance with the accounting regulations stipulated by OMFP 3055/2009. As a result, the inspection team considered that for year 2012, certain buildings were not revalued within three years of the previous revaluation and applied a higher local tax rate of 10% for the buildings, and as a consequence assessed an additional tax on buildings and related penalties in total amount of RON 20.4 million, out of which the principal is RON 11.2 million and the penalties and accessories are RON 9.2 million (calculated until the date of the report): a) Against the Imposing Decision issued by Navodari City Hall, the company has been filed an administrative complaint with the fiscal authorities. The administrative complaint filed by Rompetrol Rafinare S.A. was dismissed as being lack of object, without any judgment pronounced on the merits of the case. Rompetrol Rafinare submitted in court the challenge against this decision. This judicial procedure was under court investigation proceedings with Constanta Court of Appeal who has completed judicial investigation into the case and delivered a sentence on 16 March 2017, when the challenge submitted by Rompetrol Rafinare was rejected. The solution has been appealed by Rompetrol Rafinare. The appeal is in currently pending court investigation proceedings, and the first hearing term before the High Court of Cassation and Justice is established for 30 January 2020. At the request of the legal representative of Navodari City Hall, the Court set a new trial term for 7 May 2020. The next term in the case file was set for July 16, 2020, when the appeal filed by Rompetrol Rafinare was judged, the ruling being postponed until July 21, 2020. At that time, the Supreme Court admitted the appeal and completely change the solution of the first court, admitting the action filed by Rompetrol Rafinare SA. The Decision will be enforced for obtaining the amount granted. Also the Supreme Court admitted Rompetrol Rafinare S.A.’s request for clarifications and decided to complete the Decision with the clear obligation of City Hall of Navodari to pay back Rompetrol Rafinare S.A. the amounts paid by the Company. b) Because the decision issued by Navodari City Hall of rejection the administrative complaint as being lack of object is based on Navodari Local Council Decision no.435/21 December 2015, under which Rompetrol Rafinare has obtain the annulment of 73% of penalties, Rompetrol Rafinare submitted a second action for partial annulment of Navodari Local Council Decision no. 435/21 December 2015. This action was admitted by Constanta Tribunal. This solution has been appealed by Navodari Local Council on Constanta Court of Appeal, where the first hearing term was set on 16 January 2017, when the appeal was rejected. The solution is final. c) Rompetrol Rafinare also filed the request for suspension the enforceable effects of the imposing decision, pursuant to the Law 554/2004 and Government Ordinance 92/2003, file no.788/36/2015. The statement of defense was submitted by Navodari City Hall and the first hearing term was established for 22 February 2016. The court granted Rompetrol Rafinare claim and suspended the effects and the enforcement of the Tax Inspection Report and Tax Decisions issued by Navodari City on 19 November 2015. The solution was appealed by Navodari City Hall. On 2 November 2018, the case has been suspended. On 10 January 2020, by Decision 73/2020, the High Court of Cassation and Justice found the appeal filed by the Navodari City Hall outdated. The solution is final.

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30. LEGAL MATTERS (continued)

Litigations between Rompetrol Rafinare and National Company – Constanta Maritime Port Administration S.A.

In consideration of the violation by Compania Nationala Administratia Porturilor Maritime Constanta (National Company of Constanta Maritime Ports Administration) of the legal provisions regulating its activity, in the sense that it does not ensure the maintenance in operational parameters of the Midia port found under its administration, so as to ensure the safety of navigation, the preservation of at least the technical features designed for the port, the assurance of safe access and operation, the company initiated several legal remedies against it, as follows: a) Complaint against National Company "Administratia Porturilor Maritime" SA for violating the provisions of art. 9 of the Law no 21/1996 which caused to Rompetrol Rafinare SA damages consisting of USD 1.8 mil USD - dredging expenditures and 3.3 mil USD - commercial loss. The complaint leads to an investigation launched in April 2016 by the Competition Council. Competition Council is entitled to acknowledge the violation by Administraţia Porturilor Maritime of the provisions of art. 9 of Law no. 21/1996, to sanction the said company in accordance with the law and to render it liable to perform, subject to legal terms and conditions, the obligations resting upon it as administrator of port areas and supplier of goods and services specific to the exploitation of national maritime areas, in particular with respect to Midia Port. By Decision 21/2018, the Competition Council rejected the complaints formulated by Rompetrol Rafinare SA and Midia Marine Terminal SRL. Both companies challenged this decision at Bucharest Court of Appeal, first term being scheduled for 13 May 2019, in order to communicate to the parties the statement of defense issued by National Company "Administratia Porturilor Maritime" SA. Next term was established 21 October 2019, when the court dismissed the complaints filed by the plaintiffs. The solution was appealed by Rompetrol Rafinare SA and the first hearing was set by the High Court on 12 April 2022. b) Court claim against the Constanta Port Administration for Rompetrol Rafinare damages related to lower port drafts during January - May 2015 (0.8 mil USD) and for restitution of dredging expenses (USD 1.7 million). On 19 May 2017, the Court partially admitted the claim of the plaintiff Rompetrol Rafinare SA against the defendant Constanta Port Administration and obliged the defendant to pay to the plaintiff:  The amount of EUR 1.57 million, representing dredging expenditures paid by Rompetrol Rafinare SA, during the period 30 April 2015 - 11 May 2015;  The amount of RON 0.079 million representing legal costs. Both parties filed for appeal against the solution pronounced by first court. On 27 December 2017, Constanta Court of Appeal admitted the appeal filed by Constanta Port Administration, reject the appeal filed by Rompetrol Rafinare SA and changed the sentence pronounced by the first court, so all the claims of Rompetrol Rafinare against APMC have been rejected. Rompetrol Rafinare will submit the appeal within 30 days since the communication of the decision issued by Constanta Court of Appeal. The decision has been communicated and the recourse has been filled by Rompetrol Rafinare SA on 6 August 2018. The case is in filter proceedings, and the first hearing term will be established later. During the filter proceedings, National Company “Administratia Porturilor Maritime” SA has raised the exception of inadmissibility of our recourse, motivated by the fact that, according to art. 483 paragraph 2 of the Civil Procedure Code, the decisions regarding the civil navigation and port activity processes are exempted from the right of recourse. Rompetrol Rafinare SA has raised the exception of unconstitutionality regarding the art. 483 paragraph 2 of the Civil Procedure Code. From this reason, The High Court of Cassation and Justice has suspended the procedure until the Constitutional Court solves the exception submitted by Rompetrol Rafinare.

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30. LEGAL MATTERS (continued)

Procedure in which is involved Rompetrol Rafinare SA, Rominserv SRL, and employees of the two companies, following of a technical incident occurred in of Petromidia refinery on 22 August 2016

On 22 August 2016 a technical incident occurred within the DAV plant. Following the event, two employees of a Group’ subsidiary Rominserv SRL suffered burns and two employees passed away.

Following the completion of the criminal prosecution, Rompetrol Rafinare S.A., Rominserv SRL and four employees were put on trial for: the non-observance of the legal labor health and safety measures, bodily harm by negligence, manslaughter and accidental pollution. At the same time Rompetrol Rafinare S.A. and ROMINSERV S.R.L has quality as civilly liable party.

The company was summoned to the prosecutor's office on 2 June 2020 in order to be informed the quality of suspect of the company in the file.

On 24 June 2020 the company received the prosecutor indictment from the Constanta Court. Taking in consideration that the court has been notified with a new indictment, for the third time the preliminary chamber procedure is to be carried out. On 17 September 2020 the judge of preliminary chamber rejected as unfounded the claims and exceptions made by all defendants- i.e. RR, RIS and individuals involved- and noted the legality of court investment with the indictment no 586/P/ 2016 of the Prosecutor's office attached to the Constanta Court of Appeal, of the administration of evidences and of the performance of criminal investigation and ordered the commencing of the trial. The court decision was appealed, the appeals were rejected, and the next hearing scheduled by Constanta court (Judecatoria) is on 2 November 2021.

Relating Rompetrol Rafinare S.A. employees, Andrei Felicia and Oancea Cornel, the file has been disposed.

As at current date the maximum exposure, for each company, is in amount of USD 1.5 million (RON 6 million).

Regarding this legal matter Rompetrol Rafinare booked a provision in amount of USD 0.43 million.

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30. LEGAL MATTERS (continued)

Criminal case concerning Petromidia Refinery incident on July 2nd 2021

On July 2, 2021 there was an explosion followed by a fire at Petromidia refinery, Diesel Hydrotreatment Unit (in Romanian “instalatia Hidrofinare Petrol Motorina” hereinafter HPM plant). As a result of the incident, 1 (one) employee of the company died and 4 (four) employees was hospitalized in Constanta. Out of four, two employees were transferred at an Emergency Clinical Hospital in Bucharest and then were transferred for medical treatment to a specialized clinic abroad. Despite all efforts of the medical staff, the two colleagues who were transferred to a specialized medical unit abroad died. The criminal investigations are carried out by the Prosecutor's Office attached to the Constanta Tribunal; a technical expertise is being carried out by INCD INSEMEX Petrosani, at the request of the criminal investigation bodies; in the criminal case the company has the quality of a civilly responsible party; hearings of the employees involved in the event are held. At the same time, the collective work accident is being investigated by the Territorial Labor Inspectorate according to the incident legislation.

31. COMMITMENTS

Environmental risks and obligation

The Group’s business activities are subject to constantly changing local, national and European regulations relating to the environment and industrial activity, which entail meeting increasingly complex and restrictive requirements. In this regard, these activities can involve a financial resource in order to comply with the incidental restrictive legislation and regulation relating to the Group activities.

Although the Group has provided for known environmental obligations that are probable and reasonably estimable, it is possible that the Group will continue to incur additional liabilities. The amount of additional future costs is not fully determinable due to factors such as unknown timing and extent of the corrective actions that may be required, if the case.

Group’s financial statements account for provisions relating to the costs of environmental obligations that can be reasonably estimated in a reliable manner.

During 2019 and 2020, the Group advance with the greening process of Vega lagoons and some major phases have been finalized while the foreseen completion date of the project is 30 June 2022. Progress and status of the project is reported on a regular basis to the environmental competent authorities. A revised environmental agreement for the project was issued in January 2021 out of which there are no material additional obligations for the Group.

During 2020, the Group has carried out the due diligence procedures in accordance with Law 74/2019 (for contaminated site) in relation to the storage area of the biological waste resulted from IAZ no.1 ("Vadu cassettes"). The process is ongoing and performed in accordance with the requirements of the competent environmental authorities ("EPA Constanta"). During 2021, a detailed investigation report was provided by the Group to the environmental authorities. Also, a decision which classify the area as a contaminated site was communicated by the competent authority for environmental protection and a feasibility study was requested.

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32. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

32.1. Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Group consists of bank debt and shareholder loans (see Note 18), cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in the “Consolidated Statement of Changes in the Shareholders’ Equity”.

32.2. Gearing ratio

The gearing ratio at the year-end was as follows:

Gearing ratio June 30, 2021 December 31, 2020 Debt (excluding shareholder loans and related parties) 400,765,912 378,769,602 Cash and cash equivalents (77,674,063) (100,655,956) Net debt 323,091,849 278,113,646 Equity (including shareholder loans and related parties) 397,710,072 433,639,226 Net debt to equity ratio 0.81 0.64

The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Group is aiming to have a net debt not higher than equity level and consequently trying to maintain a maximum 1 gearing ratio.

32.3. Categories of financial instruments and fair values

June 30, 2021 December 31, 2020 Financial assets Trade and other receivables 567,555,995 521,560,690 Long-term receivables 3,715,743 4,143,035 Derivative financial instruments 1,028,190 209,030 Cash and cash equivalents 77,674,063 100,655,956 TOTAL FINANCIAL ASSETS 649,973,991 626,568,711 Financial liabilities Long-term borrowings 240,000,000 240,000,000 Derivative financial instruments 2,752,364 375,916 Short term borrowings from shareholders - 12,342,166 Other non-current liabilities 183,475 356,061 Trade and other payables 1,231,957,392 1,067,238,369 Short-term borrowings banks 73,496,047 52,949,083 TOTAL FINANCIAL LIABILITIES 1,548,389,278 1,373,261,595

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32. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)

Trade and other receivables are at net recoverable value the following are not considered as financial assets:  VAT to be recovered;  Profit tax receivables;  Other taxes receivables.

Similarly, for trade and other payables the following are not considered as financial liabilities:  Excises taxes;  Special found tax for oil products;  VAT payable;  Profit tax payable;  Salary taxes payable;  Other taxes;

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:  Cash and short-term deposits, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments;  Fair value of unquoted available-for-sale financial assets is estimated using appropriate valuation techniques;  The Group enters into derivative financial instruments with various counterparties. As at 31 June 2021, the marked to market value of derivative position is for financial instruments recognized at fair value.

32.4. Fair value hierarchy

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:  Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;  Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are based on observable market data, either directly or indirectly;  Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

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32. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)

June 30, 2021 Level 1 Level 2 Level 3 Financial assets Trade and other receivables 567,555,995 - 567,555,995 - Long-term receivables 3,715,743 - 3,715,743 - Available for sale investments 18,623 - 18,623 - Derivative financial instruments 1,028,190 - 1,028,190 - Cash and cash equivalents 77,674,063 77,674,063 - - TOTAL FINANCIAL ASSETS 649,992,614 77,674,063 572,318,551 - Financial liabilities Long-term borrowings 252,540,000 - 252,540,000 - Derivative financial instruments 2,752,364 - 2,752,364 - Other non-current liabilities 183,475 - 183,475 - Trade and other payables 1,231,957,392 - 1,231,957,392 - Short-term borrowings banks 73,496,047 - 73,496,047 - TOTAL FINANCIAL LIABILITIES 1,560,929,278 - 1,560,929,278 -

December 31, Level 1 Level 2 Level 3 2020 Financial assets Trade and other receivables 521,560,690 - 521,560,690 - Long-term receivables 4,143,035 - 4,143,035 - Available for sale investments 18,583 - 18,583 - Derivative financial instruments 209,030 - 209,030 - Cash and cash equivalents 100,655,956 100,655,956 - - TOTAL FINANCIAL ASSETS 626,587,294 100,655,956 525,931,338 - Financial liabilities Long-term borrowings 256,223,200 - 256,223,200 - Derivative financial instruments 375,916 - 375,916 - Short term borrowings from 12,342,166 - 12,342,166 - shareholders Other non-current liabilities 356,061 - 356,061 - Trade and other payables 1,067,238,369 - 1,067,238,369 - Short-term borrowings banks 52,949,083 - 52,949,083 - TOTAL FINANCIAL LIABILITIES 1,389,484,795 - 1,389,484,795 -

During the reporting period ending 30 June 2021 and 31 December 2020, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into and out of Level 3 fair value measurements.

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32. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)

32.5 Derivative financial instruments

The Group uses different commodity derivatives as part of price risk management in trading of crude oil and products.

Balance Sheet:

Balance Sheet: June 30, 2021 December 31, 2020 Derivative financial asset 1,028,190 209,030 Derivative financial liability (2,752,364) (375,916) Net position - asset/(liability) (1,724,174) (166,886)

Income Statement:

June 30, 2021 30 June 2020 Unrealised (gains) - - Net position - (gain)/loss - in Cost of sales - - Realised (gains)/losses - net 17,757,355 (51,611,696) Total position - loss/(gain) - in Cost of sales 17,757,355 (51,611,696)

June 30, 2021 December 31, 2020 Derivative asset/(liability) 2020 (166,886) (2,533,340) Forex unrealized (hedging of forex) - - Cash payments (182,346) 2,366,454 Reserves (1,374,942) - Derivative asset/(liability) 2021 (1,724,174) (166,886)

Derivative financial instruments are initially measured at fair value on the contract date, and are remeasured to fair value at subsequent reporting dates. Changes in the fair value of derivative financial instruments are recognized in profit or loss as they arise.

32.6 Market risk

The Group’s activities expose it to a variety of risks including the effects of: changes in the international quotations for crude oil and petroleum products, foreign currency exchange rates and interest rates. The Group’s overall risk management main objective is to minimize the potential adverse effects on the financial performance of the Group companies.

32.7. Foreign currency risk management

The Company's functional currency is United States Dollar (“USD”) and crude oil imports and a significant part of petroleum products sales are all denominated principally in US Dollars, therefore, limited foreign currency exposure arises in this context. Certain assets and liabilities are denominated in other currencies, which are translated at the prevailing exchange rate at each balance sheet date. The unrealized differences are charged or credited to the income statement but do not affect cash flows. Group Treasury is responsible for handling the Group foreign currency transactions.

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32. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued)

32.8. Interest rate risk management

Interest rate price risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates relative to the interest rate that applies to the financial instrument. Interest rate cash flow risk is the risk that the interest cost will fluctuate over time. The Group has long-term debt and short- term debt that incur interest at fixed and variable interest rates that exposes the Group to both fair value and cash flow risk. Details of the interest rate terms, which apply to the Group's borrowings, are provided in Notes 13 and 18.

32.9. Commodity price risk

The Group is affected by the volatility of prices of crude oil, oil products and by refinery margins. Its operating activities require ongoing purchase of crude oil to be used in its production as well as supplies to its clients. Due to significantly increased volatility of crude oil prices, the management developed a hedge policy which was presented to the Group’s Board of Directors and was approved in most significant aspects in 2010 and with some further amendments in February 2011. Following this approval, the Group started on January 2011 to hedge commodities held by Rompetrol Rafinare and in 2014 it was implemented a hedging program in Rompetrol Downstream.

According to the hedge policy, on the commodity side, the flat price risk for priced inventories above a certain threshold (called base operating stock in case of Rompetrol Refinery, benchmark stock for Rompetrol Downstream) is hedged using future contracts traded on ICE Exchange and some OTC instruments. The base operating stock is the equivalent of priced stocks that are held at any moment in time in the Group, hence price fluctuations will not affect the cash-flow.

Trading activities are separated into physical (purchase from third parties and KazmunayGas Group, and sales to third parties and Intercompany) and paper trades (for economic hedging purposes). Each physical transaction is covered through a related futures position according to the exposure parameters set by management (i.e. based on physical quantities sold or purchased). The Group sells or buys the equivalent number of future contracts. This paper trade is done only to hedge the risk of the Physical Trade and not to gain from the trading of these instruments.

32.10. Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract leading to a financial loss. The Group is exposed to credit risk from its operating activities primarily for trade receivables and from its financing activities including bank deposits, foreign exchange transactions and other financial instruments.

Trade receivables

The retail operational segment is exposed to credit risk. Outstanding customer receivables are regularly monitored. Sales to KazMunayGas Trading AG, a related party represent 20% of the Group’s revenues. The requirement for impairment is analyzed on a regular basis, being undertaken on an individual basis as well as collectively on the basis of ageing.

Financial instruments and bank deposits

Credit risk from balances with banks and financial institutions is managed by the Group’s treasury in accordance with the Group’s policy.

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33. SUBSEQUENT EVENTS

Facilities granted to Rompetrol Rafinare SA by Banca Transilvania in amount of EUR 30 million and EUR 27.96 million have been extended until January 31, 2022.

YEDIL UTEKOV RAMONA-GEORGIANA GALATEANU CHAIRMAN of the BOARD of DIRECTORS FINANCE MANAGER

FELIX CRUDU-TESLOVEANU GENERAL MANAGER

English translation is for information purposes only. Romanian language text is the official text for submission. 88

AFFIDAVIT

The undersigned, Yedil Utekov, acting as Chairman of the Board of Directors, Felix Crudu-Tesloveanu, acting as General Manager and director of the Board of Directors of Rompetrol Rafinare S.A. and Ramona-Georgiana Gălăţeanu, acting as Financial Manager of Rompetrol Rafinare SA, in consideration of art. 67, alin (2) lit. c) of the Law no. 24/2017 regarding the issuers of financial instruments and market operations,

Hereby declare that, as far as we are aware, the individual unaudited half-year financial-accounting statements as of 30.06.2021, drafted in compliance with the applicable accounting standards, provide a correct and accurate image of the actual assets, liabilities, financial status, profit and losses account of Rompetrol Rafinare SA and, respectively, of its subsidiaries included in the financial statements’ consolidation process, as well as that the Reports of the Board of Directors (on the individual financial statements drafted in compliance with the Order of the Minister of Public Finance no. 2844/2016 for approval of the accounting regulations in compliance with the International Financial Reporting Standards (“IFRS”) and on the consolidated financial statements drafted in compliance with IFRS) are presenting the information concerning the Company’s activity in a correct and complete manner.

Chairman of the Board of Directors of Rompetrol Rafinare S.A.

______Yedil Utekov

General Manager

______Felix Crudu-Tesloveanu

Financial Manager

______Ramona-Georgiana Gălăţeanu

Date: August 12, 2021

Rompetrol Rafinare S.A. (symbols, Bucharest Stock Exchange: RRC, Reuters: ROMP.BX, Bloomberg: RRC RO) has released today its second quarter and first semester 2021 financial and operational unaudited results. The figures include unaudited consolidated financial statements for this period prepared by the company in accordance with International Financial Reporting Standards („IFRS”).

Consolidated financial statements of Rompetrol Rafinare include the results of the parent company Rompetrol Rafinare S.A and its subsidiaries Rompetrol Downstream S.R.L, Rompetrol Gas S.R.L, Rompetrol Quality Control S.R.L, Rom Oil SA, Rompetrol Logistics S.R.L and Rompetrol Petrochemicals S.R.L.

The document is posted on our website in the Investor Relations section: www.rompetrol-rafinare.ro

HIGHLIGHTS – CONSOLIDATED

Q2 2021 Q2 2020 % H1 2021 H1 2020 % Financial Gross Revenues USD 1,278,973,648 596,316,417 114% 2,285,238,133 1,525,454,497 50% Net Revenues USD 932,517,408 378,329,425 146% 1,645,165,714 1,055,899,842 56%

EBITDA USD 39,368,684 (28,111,976) N/A 68,823,277 (43,678,808) N/A EBITDA margin % 4.2% -7.4% 4.2% -4.1%

EBIT USD 5,311,481 (24,297,903) N/A (1,194,254) (100,075,872) 99%

Net profit / (loss) USD (8,091,367) (38,689,090) 79% (22,824,507) (126,471,111) 82% Net Profit / (loss) % -0.9% -10.2% -1.4% -12.0% margin

Rompetrol Rafinare consolidated gross revenues reached approximatively USD 1.3 billion in Q2 2021 and approximatively USD 2.3 billion in H1 2021, higher by 114% for the quarter and higher by 50% for the first six months of 2021 as against the same periods last year as result of increase in sales, alongside increase of international quotations for petroleum products.

The results have been supported by an increase in the volume of processed raw materials and of the petroleum products sold, as well as by the increase in refining margin (27.5 USD/to in H1 2021 as against 5.5 USD/to in H1 2020).

1 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com ROMPETROL RAFINARE Q2 and H1 2021 IFRS CONSOLIDATED UNAUDITED RESULTS

ECONOMIC ENVIRONMENT

Q2 2021 Q2 2020 % H1 2021 H1 2020 %

Brent Dated USD/bbl 69.0 29.6 133% 65.0 40.1 62% Ural Med USD/bbl 67.3 29.9 125% 63.6 39.2 62% Brent-Ural Differential USD/bbl 1.7 (0.3) N/A 1.4 0.9 59%

Premium Unleaded 10 ppm FOB USD/tonne 649 267 143% 604 367 65% Med Diesel ULSD 10 ppm FOB Med USD/tonne 550 268 105% 519 365 42%

RON/USD Average exchange rate 4.09 4.39 -7% 4.07 4.37 -7% RON/USD Closing exchange rate 4.14 4.32 -4% 4.14 4.32 -4%

RON/EURO Average exchange rate 4.92 4.84 2% 4.90 4.82 2% RON/EURO Closing exchange rate 4.93 4.84 2% 4.93 4.84 2%

USD/EURO Closing rate 1.19 1.12 6% 1.19 1.12 6%

Inflation in Romania* 1.25% 0.38% 227% 3.42% 1.55% 121% Source: Platts, * INSSE (Inflation in Romania is calculated based on CPI - i.e. Consumer Price Index)

According to International Energy Agency (IEA) the supply glut created by the global pandemic has cleared, even as demand suffers a blow from a resurgence of the virus in India.

2 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com ROMPETROL RAFINARE Q2 and H1 2021 IFRS CONSOLIDATED UNAUDITED RESULTS

Even if the margins were lower as against H1 2020, they had an increasing trend during H1 2021, with major positive impact coming from gasoline cracks and low Urals-Dated Brent differential.

*The information is based on analysis provided by JBC Energy GmbH, OPEC and National Bank of Romania

3 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com ROMPETROL RAFINARE Q2 and H1 2021 IFRS CONSOLIDATED UNAUDITED RESULTS

REFINING SEGMENT

Q2 2021 Q2 2020 % H1 2021 H1 2020 % Financial Gross Revenues USD 1,049,547,992 436,270,421 141% 1,888,567,388 1,202,484,821 57% Net Revenues USD 761,844,734 269,451,190 183% 1,348,459,397 830,234,999 62% EBITDA USD 5,351,375 (39,100,865) N/A 12,262,540 (50,249,588) N/A EBITDA margin % 0.7% -14.5% 0.9% -6.1% EBIT USD (16,763,589) (23,723,628) 29% (35,261,002) (86,890,379) 59% Net profit / (loss) USD (29,742,365) (38,373,307) 22% (42,320,106) (110,305,138) 62% Net profit / (loss) % -3.9% -14.2% -3.1% -13.3% margin

Gross cash refinery margin/tonne USD/tonne 21.9 (16.6) N/A 27.5 5.5 404% (Petromidia) Gross cash refinery margin/bbl USD/bbl 3.0 (2.3) N/A 3.8 0.8 404% (Petromidia)

Net cash refinery margin/tonne USD/tonne (4.6) (49.0) 91% (2.2) (25.4) 91% (Petromidia) Net cash refinery margin/bbl USD/bbl (0.6) (6.7) 91% (0.3) (3.5) 91% (Petromidia)

Operational Feedstock thousand processed in 1,462 876 67% 2,726 2,116 29% tonnes Petromidia refinery Feedstock thousand processed in Vega 119 82 45% 188 154 22% tonnes refinery

thousand Gasoline produced 360 196 84% 701 520 35% tonnes Diesel & jet fuel thousand 750 516 45% 1,378 1,179 17% produced tonnes

Motor fuels sales - thousand 671 451 49% 1,222 1,038 18% domestic tonnes Motor fuels sales - thousand 375 243 54% 742 583 27% export tonnes

Export % 36% 35% 38% 36% Domestic % 64% 65% 62% 64% Refining segment comprises the results of the company Rompetrol Rafinare related to Petromidia and Vega refineries. Rompetrol Rafinare computes Gross refinery margin as follows - (Oil Product Sales – Cost of Feedstock) / Quantity of sales. Net Refinery margin is the EBITDA divided by quantity of sales.

Gross revenues of refining segment reached over USD 1.049 billion in Q2 2021 and over USD 1.88 billion in H1 2020, showing a 141% increase on quarter level and a 57% increase on half year level, as against same periods last year.

4 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com ROMPETROL RAFINARE Q2 and H1 2021 IFRS CONSOLIDATED UNAUDITED RESULTS

In Q2 and H1 2021, the total throughput for Petromidia refinery was 1.46 million tonnes, respectively 2.73 million tonnes, higher by 67% on quarter level, and also higher by 29% on half year level if compared with the same periods last year when the total throughput was 0.88 million tonnes in the quarter, alongside 2.12 million tonnes in H1 2020.

In Q2 and H1 2020, the refining capacity utilization in Petromidia refinery was 91.15%, and 87.61%, higher by 42.4%, and by 26.5% compared with the same periods last year.

This increase is correlated with continues operation for refinery in H1 2021 compering with planned shut-down in March - April 2020 for turnaround activity and COVID-19 pandemics measures.

Petromidia refinery managed to achieve in H1 2021 a good refining operational performance, for its main technological and operational parameters, such as:

 White finished products yield of 84.67%wt;  Technological loss of 0.86%wt;  Energy Intensity Index of 100.95%.

In respect of Vega refinery (the oldest processing unit operating in Romania (since 1905) and the only domestic producer of bitumen and hexane), the total throughput was 119,225 tonnes in Q2 2021 and 188,187 tonnes in H1 2021, higher by 45.41% and by 22.1% compared with the same periods last year when the total throughput was 81,991 tonnes in Q2 2020 and 154,122 tonnes in H1 2020.

For the first six months of 2021 the refining capacity utilization was 114.05%, higher by 20.65% compared with the same period last year.

Vega refinery also managed to achieve in the first half of 2021 good refining performance results, of which the following are emphasized:

 Technological loss of 0.63%;  Energy consumption of 2.56 GJ/t;  Mechanical Availability of 98.7%.

Rompetrol Rafinare S.A. continued to be an important contributor to Romania’s fiscal budget with over USD 459 million in Q2 2021 and over USD 838 million in H1 2021.

5 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com ROMPETROL RAFINARE Q2 and H1 2021 IFRS CONSOLIDATED UNAUDITED RESULTS

PETROCHEMICALS SEGMENT

Q2 2021 Q2 2020 % H1 2021 H1 2020 % Financial Revenues USD 68,273,673 27,717,408 146% 115,092,277 62,556,178 84% EBITDA USD 11,410,878 (6,942,602) N/A 14,308,490 (15,677,242) N/A EBIT USD 6,609,019 (10,810,683) N/A 5,483,754 (23,185,270) N/A Net profit / (loss) USD 8,600,809 (9,651,738) N/A 4,411,050 (24,186,426) N/A

Operational Propylene processed thousand tonnes 35 20 75% 72 48 49% Ethylene processed thousand tonnes 19 14 39% 24 28 -13%

Total polymers thousand tonnes 40 28 43% 68 61 12% production Sold from own thousand tonnes 37 34 7% 70 71 -2% production Sold from trading thousand tonnes 0.0 - N/A 0.5 0.0 N/A Total sold thousand tonnes 37 34 8% 71 71 -1%

Export % 48% 46% 44% 41% Domestic % 52% 54% 56% 59% Petrochemicals segment comprises the petrochemicals activity from Rompetrol Rafinare and the activity of Rompetrol Petrochemicals SRL

The current petrochemicals activity is carried out through PP and LDPE units.

In Q2 2021 and H1 2021, the total polymers production for Petrochemicals area was 40 thousand tons, respectively 68 thousand tons, higher by 43% as against Q2 2020 when the total polymers production was 28 thousand tons, and higher by 12% as against H1 2020 when the total polymers production was 61 thousand tons; the increase in Q2 and H1 2021 is mainly due to turnaround activities that took place in 2020.

Progressive results for the Petrochemical division, despite the stop of the LDPE plant for two and an half months, and polymers quotations very abrupt increase positively affecting the results.

6 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com ROMPETROL RAFINARE Q2 and H1 2021 IFRS CONSOLIDATED UNAUDITED RESULTS

MARKETING SEGMENT

Q2 2021 Q2 2020 % H1 2021 H1 2020 % Financial Gross Revenues USD 837,785,125 439,806,670 90% 1,514,315,946 1,044,994,900 45% EBITDA USD 22,219,910 15,488,310 43% 42,300,471 19,639,121 115% EBIT USD 15,160,558 9,384,147 62% 28,857,269 7,491,018 285% Net profit / (loss) USD 12,745,681 8,484,542 50% 15,360,746 5,513,548 179%

Operational Fuels quantities sold thousand tonnes 229 163 40% 424 347 22% in retail Fuels quantities sold thousand tonnes 335 232 44% 611 503 21% in wholesale LPG quantities sold thousand tonnes 96 66 46% 185 144 28% Marketing segment includes the results of Rompetrol Downstream, Rom Oil, Rompetrol Quality Control, Rompetrol Logistics and Rompetrol Gas

In Q2 and H1 2021 the marketing segment had a turnover of over USD 837 million respectively over USD 1.5 billion, higher by 90% and by 45% as compared with same periods last year; Marketing Segment result performance for Q2 and H1 2021 reached a level EBITDA of USD 22.2 million, respectively USD 42.3 million (i.e. +43% for the quarter and +115% for half year).

In Q2 2021, the average Platts quotations (FOB Med Italy) in USD (reference currency) increased by +105% for diesel and by +143% for gasoline compared with the similar period of 2020. Due to the 7% appreciation of the RON against the US dollar (Q2 2021 vs. Q2 2020, on average) the international diesel quotation increased in the national currency by +91%, in the same time the international gasoline quotation increased in the national currency by +126% compared to Q2 2020.

In H1 2021, the average Platts quotations (FOB Med Italy) in USD (reference currency) increased by +42% for diesel and by +65% for gasoline compared with the similar period of 2020. Due to the 7% appreciation of the RON against the US dollar (H1 2021 vs. H1 2020, on average) the international diesel quotation increased in the national currency by +32%, in the same time the international gasoline quotation increased in the national currency by +53% compared to H1 2020.

7 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com ROMPETROL RAFINARE Q2 and H1 2021 IFRS CONSOLIDATED UNAUDITED RESULTS

APPENDIX 1 – CONSOLIDATED INCOME STATEMENT Q2 AND FIRST SEMESTER 2021, UNAUDITED

Amounts in USD

Q2 2021 Q2 2020 % H1 2021 H1 2020 %

Gross Revenues 1,278,973,648 596,316,417 114% 2,285,238,133 1,525,454,497 50% Sales taxes and discounts (346,456,240) (217,986,992) 59% (640,072,419) (469,554,655) 36%

Net revenues 932,517,408 378,329,425 146% 1,645,165,714 1,055,899,842 56%

Cost of sales (870,839,648) (378,508,567) 130% (1,532,650,870) (1,048,962,329) 46%

Gross margin 61,677,760 (179,142) N/A 112,514,844 6,937,513 1522%

Selling, general and (53,805,630) (57,547,637) -7% (104,025,941) (108,358,457) -4% administration Other expenses, net (2,560,649) 33,428,876 N/A (9,683,157) 1,345,072 N/A

EBIT 5,311,481 (24,297,903) N/A (1,194,254) (100,075,872) 99%

Finance, net (9,845,342) (10,742,304) -8% (19,461,190) (23,376,193) -17% Net foreign exchange (2,068,281) (3,412,256) -39% 577,696 (3,114,429) N/A gains / (losses)

EBT (6,602,142) (38,452,463) 83% (20,077,748) (126,566,494) 84%

Income tax (1,489,225) (236,627) 529% (2,746,759) 95,383 N/A

Net result (8,091,367) (38,689,090) 79% (22,824,507) (126,471,111) 82%

EBITDA 39,368,684 (28,111,976) N/A 68,823,277 (43,678,808) N/A

8 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com ROMPETROL RAFINARE Q2 and H1 2021 IFRS CONSOLIDATED UNAUDITED RESULTS

APPENDIX 2 – CONSOLIDATED BALANCE SHEET JUNE 30, 2021, UNAUDITED Amounts in USD

June 30, 2021 December 31, 2020 %

Assets Non-current assets Intangible assets 10,753,854 10,970,907 -2% Goodwill 82,871,706 82,871,706 0% Property, plant and equipment 1,114,363,286 1,168,350,972 -5% Right of use assets 79,181,128 76,543,589 3% Financial assets and other 3,734,366 4,161,618 -10% Total Non Current Assets 1,290,904,340 1,342,898,792 -4%

Current assets Inventories 323,480,911 202,167,399 60% Trade and other receivables 596,069,800 553,537,032 8% Derivative financial Instruments 1,028,190 209,030 392% Cash and cash equivalents 77,674,063 100,655,956 -23% Total current assets 998,252,964 856,569,417 17%

Total assets 2,289,157,304 2,199,468,209 4%

Equity and liabilities Total Equity 397,710,072 421,297,060 -6%

Non-current liabilities Long-term debt 240,000,000 240,000,000 0% Provisions 79,332,744 79,332,744 0% Obligations under lease agreements 82,829,888 81,816,635 1% Other 3,910,823 4,695,869 -17% Total non-current liabilities 406,073,455 405,845,248 0%

Current Liabilities Trade and other payables 1,362,920,021 1,267,733,760 8% Contract liabilities 36,299,218 30,912,849 17% Derivative financial instruments 2,752,364 375,916 632% Obligations under lease agreements 4,439,977 4,003,884 11% Short-term debt 73,496,047 65,291,249 13% Profit tax payable 5,466,150 4,008,243 36% Total current liabilities 1,485,373,777 1,372,325,901 8%

Total equity and liabilities 2,289,157,304 2,199,468,209 4%

9 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com ROMPETROL RAFINARE Q2 and H1 2021 IFRS CONSOLIDATED UNAUDITED RESULTS

The financial figures are extracted from Company’s consolidated unaudited IFRS financial report as of 30 June 2021.

Chairman of the Board of Directors of ROMPETROL RAFINARE S.A. ______Yedil Utekov

General Manager Finance Manager ______Felix Crudu-Tesloveanu Ramona-Georgiana Galateanu

10 ROMPETROL RAFINARE SA 215 Năvodari Blvd. Administrative Building, 905700, Năvodari, Constanța, ROMANIA fax: + (40) 241 506 930 | phone: + (40) 241 506 150 | email: [email protected] www.rompetrol.com