Letter from the CEO

Dear Readers,

For SEFE, 2025 was characterised by a dynamic and challenging market environment. Geopolitical tensions, regulatory uncertainties and volatile conditions affected energy markets worldwide, demanding strict operating discipline, rigorous risk management and clear strategic decisions. Despite the adverse conditions in global energy markets during the last financial year, we succeeded in transforming SEFE into one of Europe’s leading gas importers and in sharpening our strategic priorities in preparation for a successful future privatisation. Our activities along the entire value chain, the resilience of our business areas and our unwavering focus on security of supply, customer needs and decarbonisation contributed to the significant expansion of our position compared to our competitors.

Our operational success and the enhancement of our business were reflected in a stable financial performance in 2025, despite the challenging market environment. SEFE’s operating gross profit, for example, amounted to EUR 1,439 million, compared to EUR 1,697 million in the previous year. This slight decline is attributable primarily to the high geopolitical risks that prevailed in global energy markets and the resulting price developments, which had a particularly strong impact on SEFE’s trading and storage businesses. Several factors supported earnings, however, including the growth of our customer base in the natural gas and power sectors, higher sales volumes, a significant expansion of our liquefied natural gas (LNG) business, and successful hedging activities. EBITDA, at EUR 789 million, was below the previous year’s figure of EUR 1,127 million. The result for the period was driven by our net operating profit and amounted to EUR 289 million, compared to EUR 637 million in 2024. Overall, SEFE therefore achieved the second-best result in the Group’s history. This accomplishment demonstrates that even under complex conditions, we were able to successfully combine competitiveness, security of supply and decarbonisation in 2025. We made a significant contribution to Europe’s energy security throughout the entire value chain, from origination and trading to transport, storage and distribution, while at the same time providing economic stability for our customers.

Global partnerships for stability in times of change

Ensuring a secure energy supply in Germany and Europe continues to be our mission. To this end, we further expanded our origination portfolio in the past financial year by entering into new international supply and trading partnerships. In 2025, we extended an existing agreement with Venture Global, a US-based developer of LNG projects. Based on this agreement, we expect to source over three million tonnes (about 46 TWh) of LNG annually starting in 2029, with deliveries envisaged over a 20-year period, thereby contributing to Europe’s security of supply. We also bolstered our successful collaboration with the Emirati LNG producer ADNOC in 2025. Supplies from the United Arab Emirates began last year and will amount to a total of 0.7 million tonnes of LNG over a three-year period. This is in addition to approximately one million tonnes of low-carbon LNG per year already agreed with ADNOC in 2024, with deliveries set to begin in 2028. The start of LNG imports from Argentina represents another milestone in the diversification of our portfolio. Starting in 2027, Southern Energy will supply us with two million tonnes of LNG annually. This not only expands our regional sourcing footprint to include South America, but it also makes SEFE the first company worldwide to conclude a long-term LNG supply contract with Argentina.

Additionally, we also secured new sources for pipeline gas imports in 2025. In the past financial year, SEFE entered into a ten-year natural gas purchase agreement with SOCAR, Azerbaijan’s state-owned oil and gas company. Under this agreement, SEFE will receive up to 15 TWh, or about 1.5 billion cubic metres, of natural gas per year. These deliveries, which already began in 2025, open an additional route for supplying the European market. Through long-term supply agreements across various energy sources, regions and transport routes, we are not just strengthening Europe’s security of supply; we are also further consolidating our position in global gas trading.

In addition, we strategically expanded our customer offerings and started supplying power in Germany in 2025. Power has been an integral component of our portfolio for many years – particularly in the United Kingdom, where we are among the leading suppliers. The launch of power sales in Germany enables us to leverage our integrated platform model, including our existing trading and sales structures and our expertise, in another core market. Entering the German power market therefore represents a strategic milestone for SEFE on its path to becoming one of Europe’s leading integrated energy companies.

In 2025, we also successfully expanded our metals trading business. We already started financial metals trading in 2024 to complement our established trading activities, particularly in the gas sector. The launch of physical trading now marks the next phase in the implementation of our metals strategy.

Decarbonisation for a secure energy supply

For SEFE, decarbonisation is not a future aspiration, but a concrete transformation process that we are actively driving forward. Our transport infrastructure plays a key role in this regard. Following the complete consolidation of the WIGA Group, we now operate a gas transport network spanning over 4,200 kilometres across Germany. This network is a backbone of Europe’s energy supply as well as a crucial lever for the transformation of the energy system.

Despite existing regulatory and macroeconomic uncertainties, we are working towards a gradual transition from natural gas to climate-friendly energy sources to meet customer demand for low-carbon energy in support of the energy transition. At the same time, we continuously review our strategic positioning in response to evolving market conditions and the EU regulatory framework. We are progressively implementing the necessary adjustments in order to ensure full alignment with these requirements.

Even in the challenging environment surrounding the scale-up of the hydrogen market, we successfully converted around 400 kilometres of existing pipelines for hydrogen transport as part of the “Flow – making hydrogen happen” project, filling them for the first time in 2025. With this pioneering technical accomplishment in hydrogen transmission, we are making a tangible contribution to the development of Germany’s hydrogen core network. In parallel, we are demonstrating how existing infrastructure can be used for a climate-neutral energy future. Furthermore, we are collaborating with industry partners to investigate solutions for carbon management, with the aim of facilitating the transport, storage and utilisation of CO₂ in the future. These activities are driven by our clear commitment to sustainability. In 2025, we consistently pursued our ESG goals to reduce our greenhouse gas emissions and remain on track to meet our climate targets – both at our own facilities and across the supply chain.

Outlook

With substantial challenges persisting, 2026 is proving to be another challenging year for the global economy. The current environment continues to be shaped by geopolitical tensions, an increasing focus on national interests and the use of energy as a political instrument. The escalation of the Iran conflict and the resulting risks to energy security and supply chains clearly illustrate the persistence of these dynamics and underline the global economy’s dependence on the availability of reliable energy. At the same time, these conditions create opportunities for our broadly diversified trading and origination portfolio. Against this backdrop, prudent risk management, strategic flexibility and close collaboration with existing and new partners remain crucial for SEFE’s success and resilience.

We will further diversify and expand our portfolio, with gas remaining an important and indispensable source of energy to ensure the security of supply. At the same time, we are further scaling our power sales business in Germany following its successful launch, as well as gradually complementing it with green products, carbon trading and energy services. Our objective is to achieve a sustainable competitive advantage through portfolio diversification and long-term customer relationships. In parallel, we will continue to invest in the modernisation and expansion of our transport infrastructure. A key priority in this regard will be the conversion of pipelines as part of the German hydrogen core network, alongside the preparation of carbon transport solutions as we transition to more sustainable energy systems.

Our ambition remains clear: we aim to be a strong partner in ensuring reliable and secure energy for Germany and Europe, while supporting our customers with competitive decarbonisation solutions and strengthening the supply of metals and raw materials to the European economy. These strategic priorities also guide SEFE’s continued development and lay the foundation for a successful privatisation.

2025 placed particularly high demands on our more than 2,000 employees worldwide. I would like to extend my special thanks to them: through their dedication, expertise and sense of responsibility, they help ensure that SEFE remains reliable, efficient and customer-focused, even under challenging conditions. My thanks also go to the members of the Supervisory Board for their consistent trust and constructive support in the further development of SEFE.

With warmest regards,

Your

Egbert Laege