Category: Machine Learning

  • MIL-OSI Economics: APEC Officials Propel AI and Demographic Agendas Jeju, Republic of Korea | 14 May 2025 Issued by the APEC Senior Officials’ Meeting Chairing the meeting, Ambassador Seongmee Yoon emphasized Korea’s vision for a forward-looking and action-oriented APEC agenda this year.

    Source: APEC – Asia Pacific Economic Cooperation

    As global uncertainties mount and long-term challenges reshape the economic landscape, APEC economies gathered in Jeju this week to accelerate collaboration on connectivity, innovation and prosperity.

    At their two-day meeting, senior officials advanced region-wide efforts on emerging priorities such as artificial intelligence, demographic transformation and economic integration, building on recent ministerial meetings and stakeholder dialogues.

    Chairing the meeting, Ambassador Seongmee Yoon emphasized Korea’s vision for a forward-looking and action-oriented APEC agenda this year.

    “Korea’s priorities this year reflect the urgent need to future-proof our economies,” Ambassador Yoon said. “We are advancing innovation not just in technology, but in how we cooperate, how we trade and how we prepare our people for what’s next. We are strengthening connections across borders, across sectors and between generations. And we are pursuing prosperity that benefits all the people in the region.”

    “This meeting in Jeju is where we take those ideas and turn them into deliverables,” she added. “As we move toward the APEC Economic Leaders’ Week in Gyeongju, Korea is committed to driving meaningful, cooperative outcomes that benefit the whole APEC region.”

    The meeting opened with updates from key stakeholder groups, including the APEC Business Advisory Council, the Senior Finance Officials’ Meeting, the Pacific Economic Cooperation Council and the APEC Study Centers Consortium.

    Senior officials reviewed outcomes from recent ministerial meetings on ocean sustainability and human resources development, where ministers underscored the need for resilient labor systems and sustainable marine economies. Ministerial meetings on education and trade will follow on 14 and 15–16 May, respectively.

    They also considered the next steps for Korea’s flagship deliverables, including the proposed APEC AI Initiative, which outlines a region-wide approach to harnessing artificial intelligence for inclusive and sustainable growth. The initiative promotes a shared outlook, capacity building and investment in sustainable AI infrastructure.

    Additionally, Korea’s proposed Collaborative Framework on Demographic Changes was discussed, aiming to help economies address the implications of declining fertility rate and aging populations.

    “APEC’s strength lies in its ability to bring economies together to tackle profound challenges without losing sight of practical outcomes,” said Eduardo Pedrosa, Executive Director of the APEC Secretariat.

    “In Jeju, we’re seeing that in action; real collaboration on the future of artificial intelligence, on adapting to demographic transitions and on strengthening economic integration. These are not abstract goals. They’re essential to building a region that is more competitive, more connected and more resilient.”

    The Committee on Trade and Investment reported progress on economic integration in the region, trade facilitation and the inclusive growth agenda. Discussions also covered the evolution of APEC’s structural reform priorities, services competitiveness and the transition from informal to formal economies.

    Ambassador Yoon encouraged officials to continue building consensus and delivering tangible results ahead of upcoming sectoral ministerial meetings and APEC Economic Leaders’ Week.

    “Our work here lays the groundwork for impactful deliverables in Gyeongju,” she concluded. “Let us move forward with clarity, urgency and a commitment to deliver on our vision.” 


    For more information or media inquiries, please contact:
    [email protected]

    MIL OSI Economics

  • MIL-OSI Economics: Samsung Electronics Acquires Leading Global HVAC Solutions Provider FläktGroup

    Source: Samsung

     
    Samsung Electronics today announced that it has signed an agreement to acquire all shares of FläktGroup, a leading global HVAC solutions provider, for €1.5 billion from European investment firm Triton. With the global applied HVAC market experiencing rapid growth, the acquisition reinforces Samsung’s commitment to expanding and strengthening its HVAC business.
     
    “Through the acquisition of FläktGroup, an applied HVAC specialist, Samsung Electronics has laid the foundation to become a leader in the global HVAC business, offering a full range of solutions to our customers,” said TM Roh, Acting Head of the Device eXperience (DX) Division at Samsung Electronics. “Our commitment is to continue investing in and developing the high-growth HVAC business as a key future growth engine.”
     
    FläktGroup, based in Herne, Germany, has over a century of accumulated technological expertise and design capabilities, offering diverse products and solutions tailored to each customer. FläktGroup supplies high-reliability and high-efficiency HVAC systems to a wide range of buildings and facilities, including data centers that require stable cooling, museums and libraries managing sensitive historical artifacts, airports and terminals with high foot traffic, and large hospitals where hygiene, temperature and humidity control are critically important.
     
    In the large-scale data center market globally, FläktGroup has secured high customer satisfaction through its product performance, reliability and service support, achieving substantial revenue growth over the past three years. FläktGroup’s data center solutions include its industry-leading liquid cooling and air cooling products, which have enabled customers to reduce energy consumption, contributing to achieving lower carbon footprint goals.
     
    Last year, FläktGroup won the DCS Cooling Innovation of the Year Award at the DCS Cooling Awards, in recognition of its innovative and advanced technologies.
     
    “We are extremely pleased that FläktGroup has become a part of Samsung Electronics. FläktGroup, as a global top-tier HVAC specialist with over a century of expertise, has been relied on by global large clients for its technological and product innovations,” said Trevor Young, CEO of FläktGroup. “Now, with Samsung Electronics’ global business foundation and investment, we expect to further accelerate our growth.”
     
    In addition to data centers, FläktGroup has secured a diverse portfolio of over 60 large customers, including leading pharmaceutical companies, biotech and food and beverage firms, and gigafactories.
     
     
    Samsung Investing in HVAC Business as Key Growth Engine
    The HVAC industry is expected to continue growing with demand for innovative and energy-efficient solutions that improve air quality and control temperature and humidity to provide comfort and safety. Samsung will continue to invest in the HVAC business and has recently made acquisitions and investments across robotics, medical technology and the consumer audio sectors as part of its commitment to expand into new growth businesses.
     
    According to some market research forecasts, the applied HVAC market is projected to grow from $61 billion in 2024 to $99 billion by 2030, at an annual growth rate of 8%, while the data center cooling market is expected to grow at a faster pace at an annual growth rate of 18%. The data center segment in particular has high entry barriers, requiring global supply experience and the ability to present optimal designs and solutions for customers.
     
    In its acquisition of FläktGroup, Samsung anticipates sustained growth in data center demand due to the proliferation of generative AI, robotics, autonomous driving, XR and other technologies.
     
    In addition, Samsung’s building integration control solution (b.IoT) and FläktGroup’s HVAC control solution (FläktEdge) will offer a full suite of HVAC and building energy control systems, through which the company expects an expansion of its service and maintenance business.
     
    Samsung has been expanding its HVAC business with a focus on ductless systems, which supply general and system air conditioners to residential and commercial buildings. In May 2024, Samsung formed a joint venture with Lennox International Inc. to strengthen its position in the North America HVAC market and added Lennox’s distribution channels to the company’s own sales channels.
     
    The transaction is expected to close within 2025.

    MIL OSI Economics

  • MIL-OSI USA: Sen. Cramer: FAA Announces $5.8 Million for Projects at North Dakota Airports

    US Senate News:

    Source: United States Senator Kevin Cramer (R-ND)

    WASHINGTON, D.C. – The U.S. Department of Transportation (DOT) Federal Aviation Administration (FAA) announced an award of$5,844,554 through the Airport Infrastructure Grant (AIG) program for projects at several airports across North Dakota. The funding will be distributed to the following:

    • $2,491,667 for the Bismarck Municipal Airport to expand the existing General Aviation Apron by adding 5,340 square yards to meet FAA standards and to reconstruct 8,090 square yards of the existing General Aviation Apron pavement.
    • $2,200,000 to the Jamestown Regional Airport Authority to expand an existing 9,450 square foot snow removal equipment and sand storage building by 1,500 square feet to bring the airport into conformity with current standards.
    • $552,962 to the Mercer County Regional Airport Authority to reseal 1,420 feet of the existing Taxiway A and B pavement and joints, reseal 13,708 square yards of the existing North and South Apron pavement and joints, and reseal 5,000 feet of existing Runway 15/33 pavement and joints, and reseal 530 feet of the existing Taxilane pavement and joints.
    • $171,000 to the Bottineau Municipal Airport Authority to rehabilitate one existing airport rotating beacon.
    • $137,000 to the Mandan Airport Authority to construct new airport underdrains for drainage and erosion control.
    • $120,000 to the Crosby Municipal Airport Authority to construct a new 4,800 square foot sponsor-owned hangar for aircraft storage and maintenance which will assist the airport in being self-sustaining.
    • $86,925 to the Glen Ullin Regional Airport Authority to reseal 2,985 square yards of the existing General Aviation Apron pavement and joints, to reseal 3,800 feet of existing Runway 11/29 pavement and joints, to reseal 488 feet of the existing Taxilane East, West, and South pavement and joints, and to reseal 550 feet of the existing Taxiway A pavement and joints.
    • $85,000 to the Standing Rock Sioux Tribe to rehabilitate 3,700 feet of existing paved Runway 14/32 to maintain the structural integrity and minimize foreign object debris, rehabilitate 4,700 square yards of the existing General Aviation Apron pavement to maintain the structural integrity of the pavement and to minimize foreign object debris, and rehabilitate 550 feet of the existing paved Taxiway A to maintain the structural integrity of the pavement and to minimize foreign object debris.

    The AIG Program was established by the fully-paid-for Bipartisan Infrastructure Law to provide airports with funding for modernization and safety projects. Since its creation, airports in North Dakota have received over $49 million in program funding.

    MIL OSI USA News

  • MIL-OSI China: Xi holds talks with Brazilian president

    Source: China State Council Information Office

    Chinese President Xi Jinping holds talks with Brazilian President Luiz Inacio Lula da Silva, who is on a state visit to China, at the Great Hall of the People in Beijing, capital of China, May 13, 2025. (Xinhua/Huang Jingwen)

    Chinese President Xi Jinping held talks with Brazilian President Luiz Inacio Lula da Silva, who is on a state visit to China, in Beijing on Tuesday.

    Xi said that on the occasion of the 50th anniversary of the establishment of diplomatic relations between China and Brazil last year, the two sides jointly announced the elevation of bilateral relations to a China-Brazil community with a shared future for a more just world and a more sustainable planet.

    He called on the two sides to vigorously advance the construction of a China-Brazil community with a shared future, continuously deepen the alignment of development strategies, and jointly promote strengthened solidarity and cooperation among Global South countries.

    Xi stressed that China and Brazil should maintain strategic mutual trust, provide mutual support on issues concerning each other’s core interests and major concerns, and strengthen exchange at all levels and in all respects.

    He called on the two countries to expand cooperation, deepen the effective alignment of the Belt and Road Initiative with Brazil’s development strategy, give full play to the role of the various cooperation mechanisms between the two countries, strengthen cooperation in traditional fields such as infrastructure, agriculture and energy, and expand new areas of cooperation in energy transition, aerospace, the digital economy and artificial intelligence.

    He said that China and Brazil should enhance cultural and people-to-people exchanges, provide more convenience for personnel exchanges between the two sides, and strengthen cooperation on culture, education, tourism, and media, and at the sub-national level.

    He emphasized that the two sides should adhere to multilateral coordination. As the biggest developing country in the Eastern and Western hemispheres respectively, they should enhance coordination and cooperation within multilateral mechanisms, uphold multilateralism, improve global governance, maintain the international economic and trade order, and resolutely oppose unilateralism, protectionism and bullying, Xi added.

    Brazil is willing to deepen strategic cooperation with China and promote the construction of a Brazil-China community with a shared future, Lula said.

    Brazil stands ready to align its development strategy with the Belt and Road Initiative to enhance cooperation between the two countries in areas such as trade, infrastructure, aerospace and finance, Lula added. He also called on the two countries to expand exchange in areas of the youth and culture, and to enhance exchange and friendship between the two peoples.

    Protectionism and tariff abuse cannot promote development and prosperity. Instead, they will lead to chaos. China’s resolute stance in addressing global challenges gives strength and confidence to all countries, Lula noted, adding that Brazil is willing to strengthen strategic coordination with China in international affairs, work with China to safeguard the common interests of the Global South, and safeguard international fairness and justice.

    At the Great Hall of the People, the two heads of state witnessed the signature of 20 cooperation documents covering the fields of development-strategy alignment, science and technology, agriculture, the digital economy, finance, inspection and quarantine, and media.

    The two heads of state also met with the press together.

    China and Brazil issued a joint statement on strengthening the construction of a China-Brazil community with a shared future for a more just world and a more sustainable planet, and on jointly upholding multilateralism, as well as a joint statement on the Ukraine crisis.

    Prior to the talks, Xi and his wife, Peng Liyuan, held a welcome ceremony for Lula and his wife, Rosângela Lula da Silva, at the square outside the east gate of the Great Hall of the People.

    Xi and Peng also hosted a welcome banquet for Lula and his wife on Tuesday evening. 

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    MIL OSI China News

  • MIL-OSI China: China’s listed firms log solid Q1 earnings on thriving consumption, tech innovation

    Source: People’s Republic of China – State Council News

    Despite global economic uncertainties, China’s listed companies posted solid first-quarter performance in 2025, driven by robust consumer spending and steady advances in technological innovation.

    Among the 5,400 listed companies that have released financial reports for the first quarter (Q1), more than 70 percent were in the black, according to financial information provider Wind.

    The combined net profit attributable to shareholders of all listed firms came in at 1.49 trillion yuan (about 207 billion U.S. dollars), up 3.64 percent from a year ago, the data showed.

    According to analysts, the Q1 reports reflect a surge in emerging consumption trends and booming technological innovation among China’s listed companies, underscoring the country’s ongoing shift toward high-quality development.

    The consumer sector emerged as a bright spot in first-quarter earnings, with listed consumer companies reporting a 4.7 percent year-on-year rise in revenue and a 14.7 percent increase in net profit attributable to shareholders, both outpacing the average growth rate of non-financial firms.

    Appliance makers were among the top gainers, supported by the government-backed trade-in scheme. During the period, the household appliance and consumer electronics segments posted year-on-year growth of 22.8 percent and 107.5 percent, respectively, in net profit attributable to shareholders.

    Last year, China’s consumer goods trade-in program boosted product sales by more than 1.3 trillion yuan, according the Ministry of Commerce. Building on the achievements, the country’s central authorities have recently issued approximately 81 billion yuan in ultra-long special treasury bonds, aiming to increase support for the program this year.

    New consumption models have been reshaping the market. According to Founder Securities, Chinese consumers have been spending more on holidays, ice and snow sports, and buying “guzi”– a homonym for “goods” that refers to various merchandise featuring elements of animation, comics and games (ACG) culture.

    In the first quarter, profits of firms in ice and snow tourism rose 25.8 percent year on year, while companies in the pet industry and those related to “guzi” economy saw earnings jump 58.2 percent and 93.6 percent, respectively.

    Spending on culture, entertainment and tourism also gained momentum among Chinese consumers, fueling business growth across sectors such as aviation, hospitality and film.

    Take the movie industry, for example. As of April 30, 16 film and television production companies had released their first-quarter financial reports, with six of them reporting a year-on-year doubling of net profit attributable to shareholders.

    Yan Xiang, chief economist at Founder Securities, said that the simultaneous rise in profits and revenue among consumer-related firms highlights the immense potential of China’s vast consumer market. As consumption continues to expand steadily, consumer spending is expected to play an increasingly significant role in boosting growth in the country, he added.

    Another key theme emerging from the quarterly reports was tech-driven innovation, with listed Chinese companies emphasizing advancements in smart manufacturing, digital operations and supply chain optimization as part of a broader push to spur growth through technology.

    In line with the trend, China’s listed firms have funneled more funds for research and development (R&D), with data from Wind showing that nearly half of all listed firms increased R&D investments in Q1.

    Breakthroughs in core technologies have also facilitated industrial upgrades. Companies in emerging industries accounted for 40 percent of all firms listed on the Shanghai main board, overtaking traditional sectors like finance to become the market’s leading sectors by market capitalization.

    Zheng Hongda, an analyst with Western Securities, stressed the importance of strong internal momentum among China’s technology firms in the face of a complex external environment.

    For technology companies, their investment plans for the next period should center on key areas such as semiconductors and artificial intelligence, which will galvanize the internal driving forces along the industrial chain, Zheng said. 

    MIL OSI China News

  • MIL-OSI United Nations: Secretary-General’s message on World Press Freedom Day [scroll down for French version]

    Source: United Nations secretary general

    Download the video:
    https://s3.us-east-1.amazonaws.com/downloads2.unmultimedia.org/public/video/evergreen/MSG+SG+/SG++World+Press+Freedom+Day+29+Apr+25/3365789_MSG+SG+WORLD+PRESS+FREEDOM+DAY+29+APR+25.mp4

    In a world plagued by conflict and division, World Press Freedom Day highlights a fundamental truth: 

    Freedom for people depends on freedom of the press.

    Free and independent journalism is an essential public good.

    It’s the backbone of accountability, justice, equality and human rights.

    Journalists everywhere must be able to report freely and without fear or favour.

    When journalists are unable to work, we all lose.

    Tragically, this is becoming more difficult every year.

    And more dangerous.

    Journalists face attacks, detentions, censorship, intimidation, violence and even death — simply for doing their jobs.

    We are seeing a sharp rise in the number of journalists killed in conflict areas – particularly in Gaza.

    And now — as this year’s theme reminds us — press freedom faces an unprecedented threat.

    Artificial intelligence can support freedom of expression — or stifle it.

    Biased algorithms, outright lies, and hate speech are landmines on the information superhighway.   

    Accurate, verifiable, fact-based information is the best tool to defuse them. 

    The Global Digital Compact adopted last year includes concrete steps to strengthen international cooperation to promote information integrity, tolerance and respect in the digital space.

    AI must be shaped in a way that is consistent with human rights and puts facts first. 

    And the Global Principles for Information Integrity I launched last year are supporting and informing this work as we push for a more humane information ecosystem.

    On this World Press Freedom Day, let’s commit to make this a reality and safeguard press freedom and the press everywhere.

    ***

    Dans un monde en proie aux conflits et aux divisions, la Journée mondiale de la liberté de la presse met en lumière une vérité fondamentale :

    La liberté des personnes dépend de la liberté de la presse.

    Le journalisme libre et indépendant est un bien commun essentiel.

    Il est l’épine dorsale de la transparence, de la justice, de l’égalité et des droits humains.

    Partout, les journalistes doivent pouvoir informer librement, sans crainte ni parti pris.

    Lorsque les journalistes sont empêchés de faire leur travail, c’est toute la société qui en paye le prix.

    Malheureusement, ce travail est plus difficile chaque année.

    Et plus dangereux.

    Des journalistes sont attaqués, emprisonnés, censurés, intimidés, victimes de violences ou même tués, simplement pour avoir fait leur travail.

    Nous voyons une forte augmentation du nombre de journalistes tués dans les zones de conflit, en particulier à Gaza.

    Et aujourd’hui, comme nous le rappelle le thème choisi cette année pour la Journée mondiale, la liberté de la presse fait face à une menace sans précédent.

    L’intelligence artificielle peut favoriser la liberté d’expression – ou l’étouffer.

    Les biais algorithmiques, les mensonges purs et simples et les discours de haine sont autant de mines disséminées sur l’autoroute de l’information.

    Pour les désamorcer, rien de tel que des informations factuellement exactes et vérifiables.

    Le Pacte numérique mondial adopté l’an dernier énonce des mesures concrètes permettant de renforcer la coopération internationale et de promouvoir l’intégrité de l’information, la tolérance et le respect dans l’espace numérique.

    L’intelligence artificielle doit être façonnée de manière à favoriser le respect des droits humains et à donner la priorité aux faits.

    Les Principes mondiaux pour l’intégrité de l’information que j’ai lancés l’an dernier viennent étayer et orienter l’action que nous menons pour créer un écosystème de l’information plus humain.

    En cette Journée mondiale de la liberté de la presse, engageons-nous à faire de ces objectifs une réalité et à préserver la liberté de la presse et la presse elle-même partout dans le monde.

    ***

    MIL OSI United Nations News

  • MIL-OSI United Nations: Secretary-General’s video message to the 25th edition of the Electrical and Computer Engineering Conferences (JEEC/25) at Instituto Superior Técnico Lisboa, 5-9 May 2025 [scroll down for English version]

    Source: United Nations secretary general

    Download the vídeo:
    https://s3.us-east-1.amazonaws.com/downloads2.unmultimedia.org/public/video/evergreen/MSG+SG+/SG+25th+Coordination+of+the+Electrical+and+Computer+Engineering+Career+Week+5-9+MAY+25/MSG+SG+ENGINEERING+CAREER+WEEK+IST+LISBON+21+FEB+25.mp4

    https://s3.us-east-1.amazonaws.com/downloads2.unmultimedia.org/public/video/evergreen/MSG+SG+/SG+25th+Coordination+of+the+Electrical+and+Computer+Engineering+Career+Week+5-9+MAY+25/MSG+SG+ENGINEERING+CAREER+WEEK+IST+LISBON+21+FEB+25+EN.mp4

    Caras alunas e caros alunos,

    Saúdo-vos calorosamente por ocasião destas importantes e entusiasmantes jornadas no Instituto Superior Técnico.

    Como antigo aluno, posso afirmar que o Técnico teve um papel decisivo na minha formação e na minha capacidade de aprender a aprender e de começar a procurar soluções para os desafios do nosso mundo em rápida mudança.

    Esta procura de soluções é o objetivo das disciplinas de ciências, tecnologia, engenharia e matemática.

    Da luta contra a pobreza, a fome, a desigualdade e a discriminação, passando pela resolução de conflitos e pela crise climática, até ao aproveitamento do grande potencial de tecnologias em rápida evolução como a Inteligência Artificial, precisamos das vossas ideias, conhecimentos e inovações. 

    Ao empreenderem por uma carreira em engenharia eletrotécnica e de computadores, têm a oportunidade de desempenhar um papel fundamental para enfrentar estes desafios e melhorar a vida das pessoas. 

    Através do Pacto para o Futuro, recentemente adotado pelas Nações Unidas, os países concordaram em acelerar os investimentos nos sistemas educativos, para garantir que os alunos de todas as idades possam ter um melhor acesso à formação e à tecnologia de que precisam ao longo das suas vidas.

    O Pacto apela também à criação de um Painel Científico Internacional Independente sobre Inteligência Artificial que promova um entendimento comum dos riscos, benefícios e capacidades – e um diálogo global que garanta que todos os países tenham uma voz ativa na definição do futuro da Inteligência Artificial.

    Caras alunas e caros alunos,

    Os vossos estudos no Técnico estão a proporcionar-vos a base de que precisam.

    Mas os próximos passos dependem de cada um de vós.

    Por isso, mantenham-se curiosos e empenhados.

    Continuem a alargar os limites da inovação e do conhecimento humano.

    Continuem a aprender a aprender.

    E obrigado por dedicarem as vossas mãos, mentes e corações à tarefa mais importante de todas – a de moldar um futuro melhor, mais justo e mais saudável para todas as pessoas.

    Bem hajam!

    ***

    Dear students,

    I send warm greetings for this important and exciting week at Instituto Superior Técnico.

    As a former student, I can say that Técnico played a decisive role in my own education and in my ability to learn how to learn, and to begin seeking solutions to the challenges of our rapidly changing world.

    This search for solutions is what the science, technology, engineering and math subjects are all about.

    From fighting poverty, hunger, inequality and discrimination, to addressing conflicts and the climate crisis, to harnessing the great potential of rapidly evolving technology like Artificial Intelligence, we need the ideas, expertise and innovations of all of you. 

    By pursuing a career in electrical and computer engineering, you can play a critical role in tackling these challenges and improving people’s lives. 

    Through the recently adopted Pact for the Future, countries agreed to accelerate investments in education systems, to ensure that learners of all ages can better access the training and technology they need throughout their lives.

    The Pact also calls for the creation of an Independent International Scientific Panel on AI that promotes a common understanding of risks, benefits and capabilities — and a global dialogue that ensure that all countries have a voice in shaping the future of Artificial Intelligence.

    Dear students,

    Your studies at Técnico are giving you the foundation you need.

    But the next steps are up to you.

    So stay curious and engaged.

    Keep pushing the boundaries of innovation and human knowledge.

    Continue learning how to learn.

    And thank you for lending your hands, minds and hearts to the most important task of all — shaping a better, fairer, healthier future for all people.

    Thank you.

    ***
     

    MIL OSI United Nations News

  • MIL-OSI USA: Murphy On Trump’s Middle East Trip: This Isn’t America First. This Is Trump First. It’s A National Security Disaster And A Moral Abomination.

    US Senate News:

    Source: United States Senator for Connecticut – Chris Murphy
    [embedded content]
    WASHINGTON—U.S. Senator Chris Murphy (D-Conn.) on Tuesday spoke on the U.S. Senate floor to deliver a blistering condemnation of President Trump’s foreign policy corruption, highlighting his use of the office to enrich himself while putting U.S. national security at risk. Murphy called out Trump’s brazen willingness to accept luxury gifts and bribes from foreign governments like Saudi Arabia, Qatar, and the UAE, blasting the president for openly prioritizing his own profits over the well-being of American families and calling for bipartisan action to confront these abuses of power.
    “Usually, public corruption happens in secret,” said Murphy. “The politicians that do it, they know it’s wrong to accept money in exchange for favorable government treatment, and so they hide it – until they’re found out.”
    He continued: “The key difference is that Donald Trump isn’t hiding it like other corrupt officials are. He’s not ashamed, he’s not doing it in secret. His corruption is wildly public, and his hope is that by doing it publicly, he can con the American people into thinking that it’s not corruption because he’s not hiding it. But what he’s doing, in reality, is no different than any other corrupt public official who does it in private, other than the fact that Trump’s corruption, his foreign policy corruption, is just so much bigger in scope and the impact that it has on the American people than anything a corrupt mayor or a corrupt governor may have done. Trump’s first major foreign trip–and he just landed–is to Saudi Arabia, Qatar, and the UAE; not because these are our most important allies in the world; not because these are the most important countries in the world; not because he’s going there to talk about making the Middle East more safe and more secure. No, his first trip is to these three countries because these are the three countries that have agreed to pay Donald Trump money. Donald Trump is going to collect tribute, and it’s all just out in the open.”
    Murphy laid out the price of doing business with the Trump administration: “So let’s ask, what is the going rate right now for a Gulf country to buy access to Donald Trump? To get favorable treatment from the federal government? For Qatar, we recently found out, it’s a $400 million luxury plane. This plane has been opulently configured for royal use. It’s not a gift to the U.S. government – it’s a personal gift to the president. The terms of the arrangement apparently include a stipulation that after Trump leaves office, it will be transferred to Trump, to his presidential library – which means Trump gets the so-called ‘floating palace’ for himself…For Saudi Arabia, the price is also in the billions. Soon after leaving the White House, in Trump’s first term, his son-in-law Jared Kushner created a private equity firm and got a $2 billion investment from Saudi Arabia. The board of the Saudi sovereign wealth fund questioned such a large investment in an unproven fund, but the Saudi Crown Prince overruled the board, undoubtedly seeing the political advantage of investing directly with the Trump family…For the UAE, the price is somewhere north of $2 billion.”
    “Well, the most simple way to think about this is that if the guy that you elected to protect us and make our lives better is spending most of his time alternating between playing golf and cutting deals for himself, he’s not protecting you. He’s not spending any time trying to lower costs or defeat our enemies. Corruption, it can be a full-time job for Donald Trump, and that’s a pretty lousy deal for the American people,” Murphy added. “But more importantly, when our foreign policy is for sale, we are less safe. Let me give you an example relative to the trip that Donald Trump is on right now. These countries aren’t padding Donald Trump’s pockets because they like him. They are paying him in order to get things from the federal government, from the U.S. government, without having to make any actual policy concessions that would benefit the U.S. people. 
    Murphy called on Republicans and Democrats to unite, vowing to block arms sales linked to corrupt deals and push legislation to stop politicians from profiting off crypto: “We can look the other way, or we can join together, Republicans and Democrats, to stand up for this country and do something about it. I’ve joined with Senators Schatz and Coons and Booker to introduce a resolution condemning the acceptance of the plane. It’s a blatant violation of the Emoluments Clause. We could stand together as a Senate to vote for that resolution. I’ve introduced legislation to make it illegal for presidents or members of Congress and their family members to profit off of crypto coins while they hold federal office.  We could join together in that effort. I will personally seek to block any arms sale that is announced as part of this trip with a country that is personally investing in Donald Trump and his family. I will force a full Senate debate and a vote on these sales. Foreign leaders need to know there will be a price for participating in the corruption of the American presidency.”
    Murphy tore into Trump’s corruption, calling it a national security sellout and a slap in the face to working families: “This level of corruption is so gross that even Trump’s most hardened MAGA sycophants are turning against him. I didn’t think I’d see the day, but people like Ben Shapiro and Laura Loomer, who fawn over Trump, can’t believe he is so crass as to think that it’s ok to accept planes as a gift in exchange for U.S. national security concessions. This isn’t America First. This is not what he promised the American people. This is Trump First. He is willing to put our nation’s security at risk, take unconstitutional bribes, just so he can fly himself and his Mar-a-Lago golf buddies around the world in gold plated luxury planes gifted to him by foreign governments. All while at the same time, he tells Americans that they should be okay buying fewer school supplies for their kids, or fewer birthday presents for their grandchildren, because he is driving prices up for non-billionaires in this country. All while at the same time he is kicking 13 million people off of their health care. Trump lines his pockets, he corrupts our foreign policy to enrich himself, while driving up prices and stealing health care from average Americans. It’s a national security disaster and it’s a moral abomination.”
    A full transcript of his remarks can be found below:
    MURPHY: “Usually, public corruption happens in secret. The politicians that do it, they know it’s wrong to accept money in exchange for favorable government treatment, and so they hide it – until they’re found out.
    “A textbook example would be Louisiana Governor Edwin Edwards, who in the 1990’s was quietly taking bribes from businessmen who wanted to get licenses for riverboat casinos. In the late 1990’s, Edwards was convicted for the crimes of extortion, racketeering, and money laundering. The way in which he was doing it was like out of a movie– in one instance, a businessman handed the Governor a suitcase full of $100 bills – totaling $400,000 – all in order to get a 6-0 commission ruling in favor of this casino. Eventually, as with most all corrupt officials who are taking money privately, Edwards was discovered. He was disgraced, and he went to jail.
    “As we speak, our president, Donald Trump, is going to the Middle East on a public corruption tour. He’s no less corrupt than Edwin Edwards of Louisiana. In fact, he’s way more corrupt. Edwin Edwards took $400,000, while in the Middle East, Donald Trump will cement deals totaling in the billions in exchange for favorable treatment by the U.S. federal government for these Gulf countries. 
    “The key difference is that Donald Trump isn’t hiding it like other corrupt officials are. He’s not ashamed, he’s not doing it in secret. His corruption is wildly public, and his hope is that by doing it publicly, he can con the American people into thinking that it’s not corruption because he’s not hiding it. But what he’s doing, in reality, is no different than any other corrupt public official who does it in private, other than the fact that Trump’s corruption, his foreign policy corruption, is just so much bigger in scope and the impact that it has on the American people than anything a corrupt mayor or a corrupt governor may have done. 
    “Trump’s first major foreign trip–and he just landed–is to Saudi Arabia, Qatar, and the UAE; not because these are our most important allies in the world; not because these are the most important countries in the world; not because he’s going there to talk about making the Middle East more safe and more secure. No, his first trip is to these three countries because these are the three countries that have agreed to pay Donald Trump money. Donald Trump is going to collect tribute, and it’s all just out in the open.
    “Frankly, it’s pretty easy to see this coming. Recent former presidents – Republicans and Democrats – have always very seriously and studiously avoided even the appearance of a conflict of interest. President Bush placed his assets into a qualified blind trust, where investment decisions were made without his knowledge or input. Both Biden and Obama divested all of their assets except for cash and mutual funds. They did not enter into any new business ventures while in the White House. 
    “In contrast, Trump has refused to abide by these standard ethics rules. His family runs his business, but nobody honestly believes that the kids are really in charge. President Trump is still calling the shots. His interests are not in a blind trust. He’s made no pledge he won’t do new deals, even with foreign entities, while he’s in office. In fact, he is doing deals seemingly every single week. He is open for business, and every foreign government knows it. 
    “In fact, it appears that right now the Gulf states are trying to outdo each other to up the price of buying an American President. And because Trump is greedy and he’s insecure – he wants to fit in with the billionaire class – he is traveling to the region with his hat out for further solicitations.
    “So let’s ask, what is the going rate right now for a Gulf country to buy access to Donald Trump? To get favorable treatment from the federal government?
    “For Qatar, we recently found out, it’s a $400 million luxury plane. This plane has been opulently configured for royal use. It’s not a gift to the U.S. government – it’s a personal gift to the president. The terms of the arrangement apparently include a stipulation that after Trump leaves office, it will be transferred to Trump, to his presidential library – which means Trump gets the so-called ‘floating palace’ for himself. 
    “This is outrageous. We’ve never seen anything like this before in American history– a foreign government gifting a $400 million luxury plane to the President of the United States. This is spelled out as blatantly unconstitutional by our Founding Fathers. They wrote into the Constitution a specific clause, the emoluments clause, which prohibits federal officeholders from accepting gifts from any King, Prince, or foreign state without the consent of Congress. How much clearer could it be? It’s unconstitutional. It’s illegal. The Founding Father knew it was evil to have members of Congress or the President of the United States accepting expensive gifts from a foreign nation who in exchange want favors from the US government. Donald Trump’s acceptance of the luxury plane from a foreign monarch is basically THE corruption our Founding fathers were seeking to prevent.
    “That’s not all he’s getting from Qatar. The Trump Organization recently signed a $5.5 billion golf course and real estate deal with DarGlobal and Qatari Diar, a firm established by Qatar’s sovereign wealth fund. $5.5 billion. While Trump’s in office.
    “It would have been unthinkable for any previous president to enter into a $5.5 billion dollar business deal with anybody, nevermind a foreign government, while they were in office. And it still should be unthinkable. 
    “Now, Qatar is a U.S. ally It’s a very important ally. But they are a complicated country. They have their own interests, some of which do not overlap with ours. A foreign government like Qatar’s should not have a $5 billion chit hanging over the head of a sitting U.S. president, and they should not be gifting him a $400 million plane. That should kind of go without saying.
    “For Saudi Arabia, the price is also in the billions. Soon after leaving the White House, in Trump’s first term, his son-in-law Jared Kushner created a private equity firm and got a $2 billion investment from Saudi Arabia. The board of the Saudi sovereign wealth fund questioned such a large investment in an unproven fund, but the Saudi Crown Prince overruled the board, undoubtedly seeing the political advantage of investing directly with the Trump family.
    “But this was only the beginning. The Trump family has put things into overdrive during his second term. Within his first three weeks in office, Trump convened a meeting at the White House with the head of the Saudi sovereign wealth fund – not to discuss matters of state, but to negotiate a deal between the PGA and the Saudi-backed LIV golf tour. You want to know why? To try to bring PGA tournaments back to Trump golf courses. Convened a meeting in the White House with the Saudis in order to enrich himself.
    “In addition to the $5 billion Qatari real estate deal, the Trump Organization is also partnering with Saudi firm [Dar Global] on a $1 billion Trump-branded hotel and tower in Dubai. The property’s website–this is a Trump-financed property along with a Saudi investment fund offers free 10-year “golden visas,” to the United States, hinting at the opportunity for investors in Trump’s property to buy residency in the United States and a pathway to citizenship.
    “For the UAE, the price is somewhere north of $2 billion. Last week, Eric Trump and World Liberty Financial co-founder Zach Witkoff spoke at a conference in Dubai on crypto called Token 2049. 
    “As an aside here, it’s just so fantastic – and bone chilling – how transparent these guys are in their use of public positions to enrich themselves. I’m going to tell the story of Trump stablecoin and the corruption with the Emiratis, but let’s just pause for a second and consider the fact that the Trump family could have partnered with anybody in the world on their new crypto venture, World Liberty Financial. But of all the people in the world to partner with on this new crypto venture, they chose the son of Trump’s Middle East envoy. Trump’s Middle East envoy, the guy who’s making all the decisions on U.S. policy in the Middle East – just to make it crystal crystal clear to the Gulf countries that when they deal with World Liberty Financial, Trump’s crypto venture, they are dealing directly with the people responsible for making U.S. policy in the Middle East. It’s just stunning. Literally the sons of the president and the sons of the Middle East envoy running a crypto venture and then going directly into the Middle East in order to find their first investment. And guess what? Miracle– they found it.
    “MGX, an investment firm backed by the Emirati government at this conference, announced that they had looked at all the crypto companies in the world that they could partner with to invest $2 billion in the crypto exchange Binance and they selected, wait for it, drumroll… the company run by the sons of the President of the United States and the U.S. Middle East envoy. $2 billion. Now World Liberty’s role in this transaction is not that complicated–it’s similar to a bank: MGX, this Emitari firm, deposits $2 billion with the firm and, in return, receives the stablecoin to be used on these crypto exchanges. The firm holds on to these dollars, invests them, and keeps the profits for themselves. So the Trump-Witkoff company just gets basically a gift of capital. And if they just used that $2 billion to invest in Treasury bonds, it would profit around $85 million a year from these investments alone.
    “And the money goes directly to Trump. Just directly to Trump. It’s literally not complicated. Emirates. World Liberty Financial. Donald Trump. This isn’t 1990’s Louisiana. Nobody’s hiding it. On World Liberty’s website they say, “an entity affiliated with Donald J. Trump” owns 60% of the equity in the company. And because of this deal, Trump and Witkoff can further capitalize. Because Trump’s stablecoin just became the 5th most valuable stablecoin in the world because of the Emirati investment.
    “And if the plane and the real estate deals and the private equity fund investment and the stablecoin weren’t enough for you, Trump has found one last way for Gulf money to flow seamlessly into his pocket: it’s called the Trump meme coin.
    “What’s the business model here? Trump gets a huge payment whenever he releases a batch of these meme coins, which by the way have no underlying value other than just the demand that people have for Trump’s coin. And then each time a Trump coin is bought or sold, a small fee is routed directly to the company owned by Trump. According to one analysis, nearly $325 million in fees have been accrued since the coin was launched in January. Just four and half months, $325 million worth of fees. 
    “Trump hides the buyers of the coin. In this way, the meme coin is kind of a little bit like Louisiana corruption. But we know that the majority of the buyers aren’t Americans who want to help Trump make this nation great again. The majority of the buyers of Trump coin are super-rich foreigners – princes, oligarchs, authoritarians – who are buying the coin in order to get in good with Trump or to get something in exchange.
    “Now one great thing about buying the coin is that you get access to Trump and the White House. And again, they’re not hiding this. Two weeks ago, Trump announced that he would host a private dinner at the White House, with seats reserved exclusively for the top 220 Trump coin holders. In two days since the announcement, Trump’s company made $900,000 in fees, because everybody, mostly foreigners–many of them probably in the Gulf–were buying up the coin as quickly as they could in order to get one of these seats. 
    “If a mayor of a small town was selling meetings at city hall for a thousand bucks, he would be run out of town on a rail. But that’s exactly what Donald Trump is doing, in the Middle East and all over the world, as foreign buyers line up to buy the meme coin guaranteed [to provide] private access to Donald Trump at the White House. You cannot make this up. 
    “Now, the obvious question for the average American is, okay, what does this mean for me? Somebody living in New Britain, Connecticut, might think it’s kind of gross that Trump is lining his pockets as President, but they want to know, how does this actually affect me?
    “Well, the most simple way to think about this is that if the guy that you elected to protect us and make our lives better is spending most of his time alternating between playing golf and cutting deals for himself, he’s not protecting you. He’s not spending any time trying to lower costs or defeat our enemies. Corruption, it can be a full-time job for Donald Trump, and that’s a pretty lousy deal for the American people.
    “But more importantly, when our foreign policy is for sale, we are less safe. Let me give you an example relative to the trip that Donald Trump is on right now. These countries aren’t padding Donald Trump’s pockets because they like him. They are paying him in order to get things from the federal government, from the U.S. government, without having to make any actual policy concessions that would benefit the U.S. people. 
    “Before anybody could begin to process the brazen corruption of the UAE/Trump/Witkoff crypto deal, reports very quickly emerged that the Trump administration was considering changing regulations to make it easier for the country of UAE to purchase highly advanced semiconductors from U.S. manufacturers. This was a huge priority of the Emiratis, but the restrictions are on the UAE for a reason. The UAE has a very troubling and very close security relationship with China, and so the reason why we didn’t allow U.S. companies to sell semiconductors directly to the UAE is because we believed that it would very easily become a conduit to China getting their hands on these advanced semiconductors and being able to leapfrog the United States in the business of advanced AI.
    “But all of a sudden, once the cash payment to Trump through the crypto venture was announced, Trump signaled that he was willing to throw our security concerns out the window and transfer this sensitive technology to the UAE, even though it’s likely that China will get their hands on this technology, allowing China to put themselves in a position to leapfrog us in the race for advanced AI. That would be a disaster for the American people. But that’s what’s happening. We might hand AI leadership to China because that’s the price of Trump getting paid, and as long as he gets paid, he doesn’t seem to care about the impact on regular Americans. 
    “The White House is open for business and the Trump family is proudly advertising to the world where to send the check. They aren’t trying to hide it. A $400 million luxury plane gifted to the president of the United States right as he is going over to negotiate potentially sensitive security arrangements with the Gulf countries. Every American, every Republican, every supposed ‘national security advocate’ in the Senate should be outraged by this. 
    “We can look the other way, or we can join together, Republicans and Democrats, to stand up for this country and do something about it. I’ve joined with Senators Schatz and Coons and Booker to introduce a resolution condemning the acceptance of the plane. It’s a blatant violation of the Emoluments Clause. We could stand together as a Senate to vote for that resolution. I’ve introduced legislation to make it illegal for presidents or members of Congress and their family members to profit off of crypto coins while they hold federal office.  We could join together in that effort. I will personally seek to block any arms sale that is announced as part of this trip with a country that is personally investing in Donald Trump and his family. I will force a full Senate debate and a vote on these sales. Foreign leaders need to know there will be a price for participating in the corruption of the American presidency.
    “This level of corruption is so gross that even Trump’s most hardened MAGA sycophants are turning against him. I didn’t think I’d see the day, but people like Ben Shapiro and Laura Loomer, who fawn over Trump, can’t believe he is so crass as to think that it’s ok to accept planes as a gift in exchange for U.S. national security concessions.
    “This isn’t America First. This is not what he promised the American people. This is Trump First. He is willing to put our nation’s security at risk, take unconstitutional bribes, just so he can fly himself and his Mar-a-Lago golf buddies around the world in gold plated luxury planes gifted to him by foreign governments. All while at the same time, he tells Americans that they should be okay buying fewer school supplies for their kids, or fewer birthday presents for their grandchildren, because he is driving prices up for non-billionaires in this country. All while at the same time he is kicking 13 million people off of their health care. Trump lines his pockets, he corrupts our foreign policy to enrich himself, while driving up prices and stealing health care from average Americans. It’s a national security disaster and it’s a moral abomination.”

    MIL OSI USA News

  • MIL-OSI China: Full Text: President Xi’s keynote speech at the opening ceremony of the fourth ministerial meeting of the China-CELAC Forum

    Source: People’s Republic of China – State Council News

    Full Text: President Xi’s keynote speech at the opening ceremony of the fourth ministerial meeting of the China-CELAC Forum

    BEIJING, May 13 — Chinese President Xi Jinping on Tuesday delivered a keynote speech at the opening ceremony of the fourth ministerial meeting of the China-CELAC (the Community of Latin American and Caribbean States) Forum.

    The following is the full text of the speech:

    Writing a New Chapter in Building

    A China-LAC Community with a Shared Future

    Keynote Address by H.E. Xi Jinping

    President of the People’s Republic of China

    At the Opening Ceremony

    Of the Fourth Ministerial Meeting of the China-CELAC Forum

    Beijing, May 13, 2025

    Your Excellency President Gustavo Petro,

    Your Excellency President Luiz Inácio Lula da Silva,

    Your Excellency President Gabriel Boric,

    Your Excellency President Dilma Rousseff,

    Delegates of CELAC Member States,

    Ladies and Gentlemen,

    Friends,

    It gives me great pleasure to meet so many old and new friends from Latin American and Caribbean (LAC) countries in Beijing. On behalf of the Chinese government and people, I extend a warm welcome to you all.

    In 2015, LAC delegates and I attended the opening ceremony of the First Ministerial Meeting of the China-CELAC Forum in Beijing, which marked the launch of the China-CELAC Forum. Ten years on, with dedicated nurturing of both sides, the Forum has grown from a tender sapling into a towering tree. This fills me with deep pride and satisfaction.

    Although China and the LAC region are geographically distant, the bonds of our friendship stretch back through centuries. As early as in the 16th century, Nao de China, or “Ships of China,” laden with friendship, shuttled across the Pacific, marking the dawn of interactions and exchanges between China and the LAC region. From the 1960s onward, as New China established diplomatic ties with some LAC countries, exchanges and cooperation between the two sides became closer and closer. Since the turn of the century and in particular in recent years, China and LAC countries have ushered in a historic era of building a shared future.

    We stand shoulder to shoulder and support each other. China appreciates the long-standing commitment of LAC countries that have diplomatic ties with China to the one-China principle. China firmly supports LAC countries in pursuing development paths suited to their national conditions, safeguarding sovereignty and independence, and opposing external interference. In the 1960s, mass rallies and demonstrations took place across China in support of the Panamanian people’s rightful claim to sovereignty over the Panama Canal. In the 1970s, during the Latin American campaign for 200-nautical-mile maritime rights, China voiced its resolute and unequivocal support for the legitimate demands of developing countries. For 32 consecutive times since 1992, China has consistently voted for the United Nations (U.N.) General Assembly resolutions calling for an end to the U.S. embargo against Cuba.

    We ride the tide of progress together to pursue win-win cooperation. Embracing the trend of economic globalization, China and LAC countries have deepened cooperation in trade, investment, finance, science and technology, infrastructure, and many other fields. Under the framework of high-quality Belt and Road cooperation, the two sides have implemented more than 200 infrastructure projects, creating over a million jobs. The China-LAC satellite cooperation program has set a model for high-tech South-South cooperation. The inauguration of Chancay Port in Peru has established a new land-and-sea connectivity link between Asia and Latin America. China has signed free trade agreements with Chile, Peru, Costa Rica, Ecuador, and Nicaragua. Last year, trade between China and LAC countries exceeded US$500 billion for the first time, an increase of over 40 times from the beginning of this century.

    We unite in tough times to conquer challenges through mutual support. China and LAC countries have collaborated on disaster prevention, mitigation and relief and on joint response to hurricanes, earthquakes and other natural disasters. Since 1993, China has dispatched 38 medical teams to the Caribbean. When the pandemic of the century struck, China was among the first to offer assistance to LAC countries, providing over 300 million doses of vaccines and nearly 40 million units of medical supplies and equipment, and sending multiple teams of medical experts. All this helped protect the lives of hundreds of millions across the region.

    We uphold solidarity and coordination and rise to global challenges with resolve. Together, China and LAC countries champion true multilateralism, uphold international fairness and justice, advance global governance reform, and promote multipolarization of the world and greater democracy in international relations. We have worked together to address global challenges like climate change, and advance progress in global biodiversity governance. China and Brazil jointly issued a six-point common understanding on the political settlement of the Ukraine crisis, which has been endorsed by more than 110 countries, contributing our wisdom and strength to resolving international hotspot issues.

    Facts have shown that China and LAC countries are advancing hand in hand as a community with a shared future. This community of ours is founded upon equality, powered by mutual benefit and win-win, invigorated by openness and inclusiveness, and dedicated to the people’s well-being. It exhibits enduring vitality and holds immense promise.

    Distinguished Delegates,

    Friends,

    The century-defining transformation is accelerating across the globe, with multiple risks compounding one another. Such developments make unity and cooperation among nations indispensable for safeguarding global peace and stability and for promoting global development and prosperity. There are no winners in tariff wars or trade wars. Bullying or hegemonism only leads to self-isolation. China and LAC countries are important members of the Global South. Independence and autonomy are our glorious tradition. Development and revitalization are our inherent right. And fairness and justice are our common pursuit. In the face of seething undercurrents of geopolitical and bloc confrontation and the surging tide of unilateralism and protectionism, China stands ready to join hands with our LAC partners to launch five programs that advance our shared development and revitalization, and contribute to a China-LAC community with a shared future.

    The first is Solidarity Program. China will work with LAC countries to support each other on issues bearing on our respective core interests and major concerns. We must enhance exchanges in all fields, and strengthen communication and coordination on major international and regional issues. In the next three years, to facilitate our exchanges on national governance best practices, China will invite 300 members from political parties of CELAC member states every year to visit China. China supports the efforts by LAC countries in increasing their influence on the multilateral stage. We will work with LAC countries to firmly safeguard the international system with the U.N. at its core and the international order underpinned by international law, and to speak with one voice in international and regional affairs.

    The second is Development Program. China will work with LAC countries to implement the Global Development Initiative. We will resolutely uphold the multilateral trading system, ensure stable, unimpeded global industrial and supply chains, and promote an international environment of openness and cooperation. We should foster greater synergy between our development strategies, expand high-quality Belt and Road cooperation, and bolster cooperation in traditional areas such as infrastructure, agriculture and food, and energy and minerals. We should expand cooperation in emerging areas such as clean energy, 5G telecommunications, the digital economy and artificial intelligence, and carry out the China-LAC Science and Technology Partnership. China will increase imports of quality products from LAC countries, and encourage its enterprises to expand investment in the LAC region. We will provide a RMB66 billion yuan credit line to support LAC countries’ development.

    The third is Civilization Program. China will work with LAC countries to implement the Global Civilization Initiative. We should uphold the vision of equality, mutual learning, dialogue, and inclusiveness between civilizations, and champion humanity’s common values of peace, development, fairness, justice, democracy, and freedom. We should enhance China-LAC civilizational exchanges and mutual learning, including through a conference on China-LAC inter-civilizational dialogue. We should deepen cultural and artistic exchanges and cooperation, and hold the Latin American and Caribbean Arts Season. We should strengthen exchanges and cooperation in cultural heritage fields such as joint archaeological projects, conservation and restoration of ancient and historic sites, and museum exhibitions. We should also carry out collaborative studies of ancient civilizations and enhance cooperation to combat illicit trafficking of cultural property.

    The fourth is Peace Program. China will work with LAC countries to implement the Global Security Initiative. China supports the Proclamation of Latin America and the Caribbean as a Zone of Peace and the Declaration of Member States of the Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean. The two sides should cooperate more closely in disaster governance, cybersecurity, counterterrorism, anti-corruption, narcotics control and combating transnational organized crime so as to safeguard security and stability in the region. China will organize law enforcement training programs tailored to the needs of CELAC member states, and do our best to provide equipment assistance.

    The fifth is People-to-People Connectivity Program. In the next three years, China will provide CELAC member states with 3,500 government scholarships, 10,000 training opportunities in China, 500 International Chinese Language Teachers Scholarships, 300 training opportunities for poverty reduction professionals, and 1,000 funded placements through the Chinese Bridge program. We will initiate 300 “small and beautiful” livelihood projects, actively promote vocational education cooperation programs such as Luban Workshop, and support CELAC member states in developing Chinese language education. We will also launch an exhibition of Chinese films and TV programs under The Bond, and work with LAC countries to translate and introduce 10 premium TV dramas and audiovisual programs annually to each other. China will host the China-LAC tourism dialogue with LAC countries. To facilitate friendly exchanges, China has decided to implement a visa exemption for five LAC countries as the first step, and will expand this policy coverage at proper times.

    Distinguished Delegates,

    Friends,

    As an 11th-century Chinese poet wrote, “Life’s greatest joy comes from finding kindred spirits.” Latin America has a similar proverb which goes, “The one who has a friend has a treasure.” No matter how the world changes, China will always stand by LAC countries as a good friend and a good partner. Let us march forward together on our paths toward modernization, working together to write a new chapter in building a China-LAC community with a shared future.

    MIL OSI China News

  • MIL-OSI China: Chinese premier meets Brazilian president

    Source: People’s Republic of China – State Council News

    Chinese Premier Li Qiang meets with Brazilian President Luiz Inacio Lula da Silva, who is on a state visit to China, at the Great Hall of the People in Beijing, capital of China, May 13, 2025. [Photo/Xinhua]

    BEIJING, May 13 — Chinese Premier Li Qiang met with Brazilian President Luiz Inacio Lula da Silva in Beijing on Tuesday.

    Li said that under the strategic guidance of the two heads of state, China-Brazil relations have entered a golden period of growth. China is willing to work with Brazil to maintain high-level exchanges, deepen political mutual trust, constantly enrich the strategic connotation of bilateral relations, comprehensively expand mutually beneficial cooperation between the two sides, and walk side by side and achieve mutual success on the road of modernization, he added.

    Noting the current international situation is complex and volatile, Li said that as major developing countries and important emerging economies in the world, China and Brazil should unite, cooperate more closely and join hands in the face of risks and challenges.

    China is willing to enhance the alignment of development strategies with Brazil, give full play to the complementary advantages of industrial structures, explore more points of convergence of interests, deepen cooperation in areas such as finance, trade and investment, infrastructure, industrial chains, and the green transformation, and create more flagship projects, Li said.

    He called on both sides to enhance cooperation in areas such as artificial intelligence, the digital economy, advanced manufacturing and biomedicine, to continuously expand the innovative impetus for practical cooperation between the two countries.

    China is willing to maintain close multilateral communication and coordination with Brazil, continue to firmly safeguard the central role of the United Nations, practice true multilateralism, promote an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization, advance the building of a community with a shared future for mankind, and contribute important strength to maintaining world peace and stability, Li said.

    Lula said Brazil attaches great importance to developing relations with China and is willing to further enhance high-level exchanges with China, strengthen the alignment of Brazil’s development strategy with the Belt and Road Initiative, and deepen mutually beneficial cooperation.

    Brazil is willing to maintain close multilateral communication and cooperation with China, support multilateralism, jointly resist unilateralism and protectionism, safeguard national sovereignty, and promote the common development of the Global South, Lula said.

    Chinese Premier Li Qiang meets with Brazilian President Luiz Inacio Lula da Silva, who is on a state visit to China, at the Great Hall of the People in Beijing, capital of China, May 13, 2025. [Photo/Xinhua]

    MIL OSI China News

  • MIL-OSI: Peyto Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, May 13, 2025 (GLOBE NEWSWIRE) — Peyto Exploration & Development Corp. (TSX: PEY) (“Peyto” or the “Company”) is pleased to report operating and financial results for the first quarter of 2025.

    Q1 2025 Highlights:

    • Peyto reported $225.2 million in funds from operations1,2 (“FFO”), or $1.12/diluted share, and generated $120.2 million of free funds flow3 in the quarter.  Strong FFO was driven by a realized natural gas price after hedging of $4.17/Mcf, 89% higher than the AECO 7A monthly benchmark, and the Company’s industry-leading low cash costs4.      
    • Earnings for the quarter totaled $114.1 million, or $0.57/diluted share, and Peyto returned $65.7 million as dividends to shareholders.
    • Net debt5 was reduced by $65.7 million from December 31, 2024 to $1.28 billion at the end of the quarter.
    • First quarter production volumes averaged 133,883 boe/d (710.5 MMcf/d of natural gas, 15,473 bbls/d of NGLs), a 7% increase year over year (5% on a per share basis), driven by strong well results from the Company’s capital program.
    • Recorded $50.8 million in realized hedging gains and exited the quarter with a hedge position protecting approximately 489 MMcf/d and 406 MMcf/d of natural gas production for Q2–Q4 2025 and 2026, respectively, at approximately $4/Mcf. Peyto’s natural gas and liquid hedging has secured approximately $875 million of revenue for 2025 and $605 million for 2026.
    • Cash costs totaled $1.42/Mcfe for the quarter, including royalties of $0.25/Mcfe, operating expense of $0.53/Mcfe, transportation of $0.29/Mcfe, G&A of $0.06/Mcfe and interest expense of $0.29/Mcfe. Peyto continues to have the lowest cash costs of Canadian producers in the oil and natural gas industry.
    • Total capital expenditures6 of $102.1 million in the quarter.  Peyto drilled 19 wells (18.2 net), completed 13 wells (13.0 net), and brought 14 wells (14.0 net) on production.    
    • Peyto delivered a solid operating margin7 of 71% and profit margin8 of 32%, resulting in a 10% return on capital employed9 (“ROCE”) and an 11% return on equity9 (“ROE”), on a trailing 12-month basis.        

    First Quarter 2025 in Review

    Peyto was active in the quarter with four drilling rigs in the Greater Sundance and Brazeau areas, as well as with pipeline and compression projects that expanded the existing gathering systems to accommodate incremental production volumes.  Natural gas prices recovered in the quarter due to large draws on storage inventories from a relatively cold North American winter, coupled with increased U.S. LNG feed gas demand.  The AECO 7A monthly gas price rose 39% from Q4 2024 and averaged $1.92/GJ.  Peyto’s realized gas price, before hedging, averaged $3.34/Mcf ($2.90/GJ), 51% higher than AECO 7A, driven by the Company’s diversification to premium demand markets in the US and Canada. Additionally, the Company recorded $0.83/Mcf of realized hedging gains on its gas volumes in the quarter from its mechanistic risk management strategy.  All in, Peyto’s realized gas price after hedging totaled $4.17/Mcf or 89% higher than AECO 7A monthly price.  The increased realized gas price, combined with Peyto’s low cost structure, boosted FFO by 13% from Q4 2024 to $225.2 million, which funded $102.1 million of capital expenditures, $65.7 million of shareholder dividends and allowed for a $65.7 million reduction in net debt in the quarter. 

    _________________________________________________

    1This press release contains certain non-GAAP and other financial measures to analyze financial performance, financial position, and cash flow including, but not limited to “operating margin”, “profit margin”, “return on capital”, “return on equity”, “netback”, “funds from operations”, “free funds flow”, “total cash costs”, and “net debt”. These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as earnings, cash flow from operating activities, and cash flow used in investing activities, as indicators of Peyto’s performance. See “Non-GAAP and Other Financial Measures” included at the end of this press release and in Peyto’s most recently filed MD&A for an explanation of these financial measures and reconciliation to the most directly comparable financial measure under IFRS.
    2Funds from operations is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A.
    3Free funds flow is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A.
    4Cash costs is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release.
    5Net debt a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A.
    6Total capital expenditures is a non-GAAP financial measure. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A.
    7Operating Margin is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release.
    8Profit Margin is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release.
    9Return on capital employed and return on equity are non-GAAP financial ratios. See “non-GAAP and Other Financial Measures” in this news release.

      Three Months Ended Mar 31 %
      2025 2024 Change
    Operations      
    Production      
    Natural gas (Mcf/d) 710,459 647,234 10%
    NGLs (bbl/d) 15,473 17,145 -10%
    Thousand cubic feet equivalent (Mcfe/d @ 1:6) 803,299 750,105 7%
    Barrels of oil equivalent (boe/d @ 6:1) 133,883 125,018 7%
    Production per million common shares (boe/d) 673 643 5%
    Product prices      
    Realized natural gas price – after hedging and diversification ($/Mcf) 4.17 4.05 3%
    Realized NGL price – after hedging ($/bbl) 62.97 60.36 4%
    Net sales price(2) ($/Mcfe) 4.90 4.87 1%
    Royalties ($/Mcfe) 0.25 0.24 4%
    Operating ($/Mcfe) 0.53 0.55 -4%
    Transportation ($/Mcfe) 0.29 0.30 -3%
    Field netback(1) ($/Mcfe) 3.88 3.82 2%
    General & administrative expenses ($/Mcfe) 0.06 0.06 0%
    Interest expense ($/Mcfe) 0.29 0.36 -19%
    Financial ($000, except per share)      
    Natural gas and NGL sales including realized hedging gains(2) 354,268 332,541 7%
    Funds from operations(1) 225,218 204,622 10%
    Funds from operations per share – basic(1) 1.13 1.05 8%
    Funds from operations per share – diluted(1) 1.12 1.05 7%
    Total dividends 65,676 64,158 2%
    Total dividends per share 0.33 0.33 0%
    Earnings 114,117 99,875 14%
    Earnings per share – basic 0.57 0.51 12%
    Earnings per share – diluted 0.57 0.51 12%
    Total capital expenditures(1) 102,129 113,762 -10%
    Decommissioning expenditures 2,872 4,206 -32%
    Total payout ratio(1) 76% 89% -15%
    Weighted average common shares outstanding – basic 199,017,749 194,416,710 2%
    Weighted average common shares outstanding – diluted 200,359,842 195,159,389 3%
           
    Net debt(1) 1,282,891 1,339,558 -4%
    Shareholders’ equity 2,593,128 2,683,990 -3%
    Total assets 5,356,226 5,373,202 0%
           

    (1) This is a Non-GAAP financial measure or ratio. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A
    (2) Excludes marketing revenue and other income

    Capital Expenditures

    Peyto drilled 19 gross (18.2 net) horizontal wells in the first quarter including 10 Wilrich, 1 Falher, 4 Notikewin, 3 Dunvegan, and 1 Cardium well in the core Brazeau and Sundance areas. The Company also completed 13 gross (13.0 net) wells and brought 14 gross (14.0 net) wells on production in the quarter resulting in total well-related capital expenditures of $85.6 million. Additionally, Peyto invested $15.5 million in gathering and processing facilities that included optimization projects and a pipeline to connect third-party volumes to Peyto’s Brazeau plant for long-term fee income. First quarter average drilling costs were slightly higher than the prior quarter, which was attributed to both cold weather operations and the execution of a uniquely over-pressured three-well pad in the Edson area. This was offset by lower completion costs, which fell 6% on a per-well basis from Q4 2024.

      2017 2018 2019 2020 2021 2022 2023 2024 2024
    Q1
    2024
    Q2
    2024
    Q3
    2024
    Q4
    2025 
    Q1(1)
    Gross Hz Spuds 135 70 61 64 95 95 72 75 18 20 21 16 19
    Measured Depth (m) 4,229 4,020 3,848 4,247 4,453 4,611 4891 5,092 5,220 5,364 4,804 4,987 4,976
                               
    Drilling ($MM/well) $1.90 $1.71 $1.62 $1.68 $1.89 $2.56 $2.85 $2.90 $3.05 $2.89 $2.81 $2.85 $3.01
    $ per meter $450 $425 $420 $396 $424 $555 $582 $569 $585 $539 $585 $572 $605
                               
    Completion ($MM/well) $1.00 $1.13 $1.01(2) $0.94 $1.00 $1.35 $1.54 $1.70 $1.80 $1.75 $1.56 $1.66 $1.56
    Hz Length (m) 1,241 1,348 1,484 1,682 1,612 1,661 1,969 2,184 2,223 2,350 2,224 1,989 1,961
    $ per Hz Length (m) $803 $751 $679 $560 $620 $813 $781 $776 $809 $744 $703 $834 $793
    $ ‘000 per Stage $81 $51 $38 $36 $37 $47 $52 $52 $55 $49 $48 $56 $56
                               

    (1) Based on field estimates and may be subject to minor adjustments going forward. 
    (2) Peyto’s Montney well is excluded from drilling and completion cost comparison.

    Peyto also spent $0.8 million during the quarter on acquiring mineral rights, seismic, and minor acquisitions.

    Commodity Prices and Realizations

    In the first quarter, Peyto realized a natural gas price after hedging and diversification of $4.17/Mcf, or $3.63/GJ, 89% higher than the average AECO 7A monthly benchmark of $1.92/GJ due to realized hedging gains and the Company’s market diversification to non-AECO hubs. Peyto’s natural gas hedging activity resulted in a realized gain of $0.83/Mcf ($53.0 million) in the quarter.

    Condensate and pentanes averaged $90.88/bbl for the quarter, down 1% year over year, while Canadian dollar WTI (“WTI CAD”) decreased 1% to $102.49/bbl over the same period. Other NGL volumes were sold at an average price of $32.41/bbl, or 32% of WTI CAD, up 3% from $31.37/bbl in Q1 2024. Peyto’s combined realized NGL price in the quarter was $64.56/bbl before hedging, and $62.97/bbl including a hedging loss of $1.59/bbl.

    Netbacks

    The Company’s realized natural gas and NGL sales yielded a combined revenue stream of $4.20/Mcfe before hedging gains of $0.70/Mcfe, resulting in a quarterly net sales price of $4.90/Mcfe, consistent with $4.87/Mcfe realized in Q1 2024. Cash costs totaled $1.42/Mcfe in the quarter, 6% lower than $1.51/Mcfe in Q1 2024 due to lower operating, transportation and interest costs. Operating costs are typically highest in the colder, first quarter and Peyto expects per-unit operating costs to trend downward throughout 2025. Peyto’s cash netback (net sales price including other income, net marketing revenue, realized gain on foreign exchange, less total cash costs) was $3.53/Mcfe, the highest since Q1 2023, driving a solid 71% operating margin. Historical cash costs and operating margins are shown in the following table:

      2022 2023 2024 2025
    ($/Mcfe) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4(2) Q1 Q2 Q3 Q4 Q1
    Revenue(1) 5.25 5.48 5.01 5.74 5.10 4.07 4.32 4.83 4.92 3.97 3.99 4.34 4.95
    Royalties 0.60 0.95 0.70 0.72 0.53 0.18 0.29 0.30 0.24 0.26 0.18 0.21 0.25
                               
    Op Costs 0.41 0.39 0.38 0.41 0.50 0.47 0.44 0.55 0.55 0.52 0.54 0.50 0.53
    Transportation 0.28 0.27 0.26 0.22 0.24 0.29 0.29 0.26 0.30 0.30 0.31 0.27 0.29
    G&A 0.03 0.02 0.02 0.02 0.03 0.05 0.04 0.06 0.06 0.06 0.03 0.05 0.06
    Interest 0.21 0.20 0.21 0.21 0.22 0.22 0.28 0.40 0.36 0.36 0.38 0.33 0.29
    Cash cost pre-royalty 0.93 0.88 0.87 0.86 0.99 1.03 1.05 1.27 1.27 1.24 1.26 1.15 1.17
                               
    Total Cash Costs10 1.53 1.83 1.57 1.58 1.52 1.21 1.34 1.57 1.51 1.50 1.44 1.36 1.42
    Cash Netback11 3.72 3.65 3.44 4.16 3.58 2.86 2.98 3.26 3.41 2.47 2.55 2.98 3.53
    Operating Margin 71% 67% 69% 72% 71% 70% 69% 67% 69% 62% 64% 69% 71%
                               

    (1) Revenue includes other income, net marketing revenue and realized gains on foreign exchange.
    (2) First quarter of Repsol assets included in Peyto’s results

    Depletion, depreciation, and amortization charges of $1.34/Mcfe, along with provisions for current tax, deferred tax, performance-based compensation and stock-based compensation resulted in earnings of $1.58 /Mcfe, or a 32% profit margin. Dividends to shareholders totaled $0.91/Mcfe.

    Hedging and Marketing

    The Company has been active in hedging future production with financial and physical fixed price contracts to protect a portion of its future revenue from commodity price and foreign exchange volatility. The following table summarizes Peyto’s hedge position for Q2–Q4 2025, calendar 2026, and calendar 2027.

      Q2 2025 Q3 2025 Q4 2025 2026 2027
    Natural Gas          
    Volume (MMcf/d) 510 510 447 406 61
    Average Fixed Price(1)($/Mcf) 3.90 3.90 4.32 3.99 4.05
    WTI Swaps          
    Volume (bbls/d) 5,000 3,800 2,400 745
    Average Fixed Price ($/bbl) 98.94 95.51 93.14 86.19
    WTI Collars          
    Volume (bbls/d) 500 500 500 248
    Put–Call ($/bbl) 90.00–100.25 90.00–110.00 90.00–100.50 87.50–100.25
    Propane          
    Volume (bbls/d) 500 500 500 123
    Average Fixed Price (US$/bbl) 33.60 33.60 33.60 33.60
    USD FX Contracts          
    Amount sold (USD 000s) 69,000 63,000 47,000 112,500
    Rate (CAD/USD) 1.352 1.352 1.355 1.355

    (1) At 1.39 CAD/USD FX rate for USD contracts

    The Company’s fixed price contracts combined with its diversification to multiple hubs in North America allow for revenue security and support Peyto’s capital expenditure program, continued shareholder returns through dividends, and debt reduction.  Details of Peyto’s ongoing marketing and diversification efforts are available on Peyto’s website at https://www.peyto.com/Marketing.aspx.

    _________________________________________________

    10Total Cash costs is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release.
    11Cash netback is a non-GAAP financial ratio. See “non-GAAP and Other Financial Measures” in this news release and in the Q1 2025 MD&A.

    Activity Update

    Since the start of the second quarter, Peyto has continued with an active drilling program across all core areas with 8 wells (6.7 net) drilled, 11 wells (9.4 net) completed, and 12 wells (12.0 net) brought on production. The Company intends to continue with a steady capital program through spring break-up and the rest of 2025.

    Last month, Peyto completed a third Falher well in Sundance, as a follow-up to the two wells that discovered a new channel last year. The results to date from these wells have demonstrated top decile internal rate of returns and the team has identified at least 20 additional locations on Peyto lands.  The Company plans to drill three more wells in the channel before the end of the year, which will help further delineate the trend and prove up productivity.

    Recently, the Company applied an alternate drilling technique and liner design on two low working-interest Cardium wells.  This technique, which targets drilling just below the Cardium sand, allowed Peyto to achieve significantly longer laterals while reducing per unit drill costs below historical levels in the area.  A cemented ball drop system allowed for the deployment of 60 stages in each well—a new record for Peyto.  Early results from these wells are encouraging and the Company plans to follow up with additional wells this year to further test the design.  With continued success, Peyto sees the opportunity to apply the new design to other Cardium inventory which comprises approximately 25% of the Company’s undrilled, booked reserves volumes.

    Beginning in April, Peyto commissioned a new pipeline to accept approximately 8 MMcf/d of natural gas from a third party at its Brazeau gas plant, relating to a multi-year gas processing agreement which utilizes spare capacity at the facility. This new pipeline also provides a future opportunity to serve other third-party volumes. 
      
    Outlook

    While the recent weakness in oil prices has a minimal effect on Peyto’s cash flow, it could be constructive to natural gas prices if the fall in oil prices lowers oil activity and associated gas production in the US. The Company remains bullish on forward natural gas prices with the recent start-up of US LNG export facilities and the ramp up of LNG Canada throughout 2025, combined with continued natural gas demand for AI driven data centres in North America. Further, Peyto is well-positioned with its hedge book and market diversification to provide shareholders with both revenue security and exposure to commodity price upside.  Over the next several years, the Company has significant volumes exposed to premium demand markets in the US and Canada, which offer a superior price above the current AECO market. 

    Despite the political volatility and global economic uncertainty, Peyto remains committed to its 2025 capital guidance of $450 to $500 million. The program is designed with flexibility in the back half of the year to adjust to changing commodity prices and the business environment. Peyto will manage production to minimize exposure to weaker priced markets, when necessary, while the Company’s systematic hedging and market diversification programs secure revenues to support future dividends and further strengthen the balance sheet.  

    Conference Call and Webcast

    A conference call will be held with senior management of Peyto to answer questions with respect to the Company’s Q1 2025 results on Wednesday, May 14, 2025, at 9:00 a.m. Mountain Time (MT), or 11:00 a.m. Eastern Time (ET).

    Access to the webcast can be found at: https://edge.media-server.com/mmc/p/svumnnnm To participate in the call, please register for the event at: Participant Call Link.  Participants will be issued a dial in number and PIN to join the conference call and ask questions. Alternatively, questions can be submitted prior to the call at info@peyto.com. The conference call will be available on the Peyto Exploration & Development website at www.peyto.com.

    Annual and Special Meeting

    Peyto’s Annual and Special Meeting of Shareholders is scheduled for 3:00 p.m. on Thursday, May 22, 2025, at the Eau Claire Tower, +15 level, 600 – 3rd Avenue SW, Calgary, Alberta. Shareholders are encouraged to read the Information Circular and vote in advance of the proxy voting deadline of Tuesday, May 20 at 3:00 p.m. (Calgary time) and attend this in-person meeting. Leading independent proxy advisory firms have recommended Peyto shareholders (“Shareholders”) vote “FOR” all the proposed resolutions.  Shareholders who have questions or need assistance with voting their shares should contact Peyto’s strategic advisor and proxy solicitation agent, Laurel Hill Advisory Group, by telephone at 1-877-452-7184 or by email at assistance@laurelhill.com. Shareholders who do not wish to attend are encouraged to visit the Peyto website at www.peyto.com where there is a wealth of information designed to inform and educate investors and where a copy of the AGM presentation will be posted. A monthly report from the President can also be found on the website which follows the progress of the capital program and the ensuing production growth.

    Management’s Discussion and Analysis

    A copy of the first quarter report to shareholders, including the MD&A, unaudited consolidated financial statements and related notes, is available at http://www.peyto.com/Files/Financials/2025/Q12025FS.pdf and at http://www.peyto.com/Files/Financials/2025/Q12025MDA.pdf and will be filed at SEDAR+, www.sedarplus.com at a later date.

    Jean-Paul Lachance                                                                                                                                           
    President & Chief Executive Officer                                                                                                                              
    May 13, 2025

    Phone:  (403) 261-6081
    Fax:      (403) 451-4100
    info@peyto.com

    Cautionary Statements

    Forward-Looking Statements

    This news release contains certain forward-looking statements or information (“forward-looking statements”) as defined by applicable securities laws that involve substantial known and unknown risks and uncertainties, many of which are beyond Peyto’s control. These statements relate to future events or the Company’s future performance. All statements other than statements of historical fact may be forward-looking statements. The use of any of the words “plan”, “expect”, “prospective”, “project”, “intend”, “believe”, “should”, “anticipate”, “estimate”, or other similar words or statements that certain events “may” or “will” occur are intended to identify forward-looking statements. The projections, estimates and beliefs contained in such forward-looking statements are based on management’s estimates, opinions, and assumptions at the time the statements were made, including assumptions relating to: macro-economic conditions, including public health concerns and other geopolitical risks, the condition of the global economy and, specifically, the condition of the crude oil and natural gas industry, and the ongoing significant volatility in world markets; other industry conditions; changes in laws and regulations including, without limitation, the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; increased competition; the availability of qualified operating or management personnel; fluctuations in other commodity prices, foreign exchange or interest rates; stock market volatility and fluctuations in market valuations of companies with respect to announced transactions and the final valuations thereof; results of exploration and testing activities; and the ability to obtain required approvals and extensions from regulatory authorities. Management of the Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Peyto will derive from them. As such, undue reliance should not be placed on forward-looking statements. Forward-looking statements contained herein include, but are not limited to, statements regarding: management’s assessment of Peyto’s future plans and operations, including the 2025 capital expenditure program, drilling plans relating to the Falher discovery at Sundance and the additional wells planned using the alternate drilling technique in the Cardium; the expectation that per-unit operating costs will trend lower in 2025; the expectation that recent weakness in oil prices will have minimal effect on Peyto and could be constructive if lower oil activity decreases associated gas; LNG and AI data centres increasing natural gas demand and setting up a bullish price environment; the sustainability of the Company’s dividend; the effectiveness of the Company’s hedging program at securing revenue; the timing of Peyto’s annual general meeting; and the Company’s overall strategy and focus.

    The forward-looking statements contained herein are subject to numerous known and unknown risks and uncertainties that may cause Peyto’s actual financial results, performance or achievement in future periods to differ materially from those expressed in, or implied by, these forward-looking statements, including but not limited to, risks associated with: continued changes and volatility in general global economic conditions including, without limitations, the economic conditions in North America and public health concerns; continued fluctuations and volatility in commodity prices, foreign exchange or interest rates; continued stock market volatility; imprecision of reserves estimates; competition from other industry participants; failure to secure required equipment; increased competition; the lack of availability of qualified operating or management personnel; environmental risks; changes in laws and regulations including, without limitation, the adoption of new environmental and tax laws, tariffs, and regulations and changes in how they are interpreted and enforced; the results of exploration and development drilling and related activities; and the ability to access sufficient capital from internal and external sources.  In addition, to the extent that any forward-looking statements presented herein constitutes future-oriented financial information or financial outlook, as defined by applicable securities legislation, such information has been approved by management of Peyto and has been presented to provide management’s expectations used for budgeting and planning purposes and for providing clarity with respect to Peyto’s strategic direction based on the assumptions presented herein and readers are cautioned that this information may not be appropriate for any other purpose.  Readers are encouraged to review the material risks discussed in Peyto’s latest annual information form under the heading “Risk Factors” and in Peyto’s annual management’s discussion and analysis under the heading “Risk Factors”.

    The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Peyto’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Peyto will derive there from.  The forward-looking statements, including any future-oriented financial information or financial outlook, contained in this news release speak only as of the date hereof and Peyto does not assume any obligation to publicly update or revise them to reflect new information, future events or circumstances or otherwise, except as may be required pursuant to applicable securities laws.

    Barrels of Oil Equivalent

    To provide a single unit of production for analytical purposes, natural gas production and reserves volumes are converted mathematically to equivalent barrels of oil (BOE). Peyto uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 BOE ratio is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on current prices. While the BOE ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.

    Thousand Cubic Feet Equivalent (Mcfe)

    Natural gas volumes recorded in thousand cubic feet (mcf) are converted to barrels of oil equivalent (boe) using the ratio of six (6) thousand cubic feet to one (1) barrel of oil (bbl).  Natural gas liquids and oil volumes in barrel of oil (bbl) are converted to thousand cubic feet equivalent (Mcfe) using a ratio of one (1) barrel of oil to six (6) thousand cubic feet.  This could be misleading, particularly if used in isolation as it is based on an energy equivalency conversion method primarily applied at the burner tip and does not represent a value equivalency at the wellhead.

    Non-GAAP and Other Financial Measures

    Throughout this press release, Peyto employs certain measures to analyze financial performance, financial position, and cash flow. These non-GAAP and other financial measures do not have any standardized meaning prescribed under IFRS and therefore may not be comparable to similar measures presented by other entities. The non-GAAP and other financial measures should not be considered to be more meaningful than GAAP measures which are determined in accordance with IFRS, such as net income (loss), cash flow from operating activities, and cash flow used in investing activities, as indicators of Peyto’s performance.

    Non-GAAP Financial Measures

    Funds from Operations
    “Funds from operations” is a non-GAAP measure which represents cash flows from operating activities before changes in non-cash operating working capital, decommissioning expenditure, provision for performance-based compensation and transaction costs.  Management considers funds from operations and per share calculations of funds from operations to be key measures as they demonstrate the Company’s ability to generate the cash necessary to pay dividends, repay debt and make capital investments.  Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds from operations provides a useful measure of Peyto’s ability to generate cash that is not subject to short-term movements in operating working capital.  The most directly comparable GAAP measure is cash flows from operating activities.

      Three Months Ended March 31
    ($000) 2025 2024
    Cash flows from operating activities 219,116 196,829
    Change in non-cash working capital 730 3,587
    Decommissioning expenditures 2,872 4,206
    Performance-based compensation 2,500
    Funds from operations 225,218 204,622
         

    Free Funds Flow
    Peyto uses “free funds flow” as an indicator of the efficiency and liquidity of Peyto’s business, measuring its funds after capital investment available to manage debt levels, pay dividends, and return capital to shareholders through activities such as share repurchases. Peyto calculates free funds flow as cash flows from operating activities before changes in non-cash operating working capital, provision for performance-based compensation, and transaction costs, less total capital expenditures, allowing Management to monitor its free funds flow to inform its capital allocation decisions.  The most directly comparable GAAP measure to free funds flow is cash from operating activities. The following table details the calculation of free funds flow and the reconciliation from cash flow from operating activities to free funds flow.

      Three Months Ended March 31
    ($000) 2025 2024
    Cash flows from operating activities  219,116  196,829
    Change in non-cash working capital  730  3,587
    Performance-based compensation  2,500  –  
    Total capital expenditures  (102,129)  (113,762)
    Free funds flow  120,217  86,654
         

    Total Capital Expenditures
    Peyto uses the term “total capital expenditures” as a measure of capital investment in exploration and production activity, as well as property acquisitions and divestitures, and such spending is compared to the Company’s annual budgeted capital expenditures. The most directly comparable GAAP measure for total capital expenditures is cash flow used in investing activities. The following table details the calculation of cash flow used in investing activities to total capital expenditures.

       Three Months Ended March 31
      2025 2024
    Cash flows used in investing activities  103,321  97,634
    Change in prepaid capital  (431)  (4,653)
    Change in non-cash working capital relating to investing activities  (761)  20,781
    Total capital expenditures  102,129  113,762
         

    Net Debt
    “Net debt” is a non-GAAP financial measure that is the sum of long-term debt and working capital excluding the current financial derivative instruments, current portion of lease obligations and current portion of decommissioning provision.  It is used by management to analyze the financial position and leverage of the Company. Net debt is reconciled to long-term debt which is the most directly comparable GAAP measure.

    ($000) March 31, 2025 December 31, 2024 March 31, 2024
    Long-term debt 1,171,497 1,295,238 1,296,844
    Current assets (269,336) (394,517) (403,467)
    Current liabilities 361,267 269,609 260,380
    Financial derivative instruments – current 29,913 188,136 194,917
    Current portion of lease obligation (950) (936) (1,322)
    Decommissioning provision – current (9,500) (8,956) (7,794)
    Net debt 1,282,891 1,348,574 1,339,558
           

    Net marketing revenue
    Peyto uses the term “net marketing revenue” to evaluate the profitability of products purchased from third parties that are resold. Net marketing revenue is calculated as marketing revenue less marketing purchases. 

      Three Months Ended March 31
    ($000) 2025 2024
    Marketing revenue 8,342 25,851
    Marketing purchases (7,283) (26,238)
    Net marketing revenue 1,059 (387)
         

    Non-GAAP Financial Ratios

    Funds from Operations per Share
    Peyto presents funds from operations per share by dividing funds from operations by the Company’s diluted or basic weighted average common shares outstanding. “Funds from operations” is a non-GAAP financial measure. Management believes that funds from operations per share provides investors an indicator of funds generated from the business that could be allocated to each shareholder’s equity position.

    Netback per MCFE and BOE
    “Netback” is a non-GAAP measure that represents the profit margin associated with the production and sale of petroleum and natural gas.  Peyto computes “field netback per Mcfe” as commodity sales from production, plus net marketing revenue, if any, plus other income, less royalties, operating, and transportation expenses, divided by production.  “Cash netback” is calculated as “field netback” less interest, less general and administration expense and plus or minus realized gain on foreign exchange, divided by production.  “After-tax cash netback” is calculated as “cash netback” less current tax, divided by production. Netbacks are per-unit-of-production measures used to assess Peyto’s performance and efficiency. 

      Three Months Ended March 31 
    ($/Mcfe) 2025 2024
    Gross sale price 4.20 3.50
    Realized hedging gain 0.70 1.37
    Net sale price 4.90 4.87
    Net marketing revenue 0.02 (0.01)
    Other income 0.03 0.05
    Royalties (0.25) (0.24)
    Operating costs (0.53) (0.55)
    Transportation (0.29) (0.30)
    Field netback 3.88 3.82
    Net general and administrative (0.06) (0.06)
    Interest and financing (0.29) (0.36)
    Realized gain on foreign exchange 0.01
    Cash netback ($/Mcfe) 3.53 3.41
    Current tax ($/Mcfe) (0.41) (0.42)
    After-tax cash netback ($/Mcfe) 3.12 2.99
    After-tax cash netback ($/boe) 18.69 17.99
         

    Net marketing revenue per Mcfe
    “Net marketing revenue per Mcfe” is comprised of marketing revenue less marketing purchases, as determined in accordance with IFRS, divided by the Company’s total production.

    Total Payout Ratio
    “Total payout ratio” is a non-GAAP measure which is calculated as the sum of dividends declared plus total capital expenditures plus decommissioning expenditures, divided by funds from operations.  This ratio represents the percentage of the capital expenditures and dividends that is funded by cashflow.  Management uses this measure, among others, to assess the sustainability of Peyto’s dividend and capital program.

      Three Months Ended March 31
    ($000, except total payout ratio) 2025 2024
    Total dividends declared 65,676 64,158
    Total capital expenditures 102,129 113,762
    Decommissioning expenditures 2,872 4,206
    Total payout 170,677 182,126
    Funds from operations 225,218 204,622
    Total payout ratio (%) 76% 89%
         

    Operating Margin
    Operating Margin is a non-GAAP financial ratio defined as funds from operations, before current tax, divided by revenue before royalties but including realized hedging gains/losses other income and third-party sales net of purchases.

    Profit Margin
    Profit Margin is a non-GAAP financial ratio defined as net earnings divided by revenue before royalties but including realized hedging gains/losses, other income and third-party sales net of purchases.

    Cash Costs
    Cash costs is a non-GAAP financial ratio defined as the sum of royalties, operating expenses, transportation expenses, G&A and interest, on a per Mcfe basis.  Peyto uses total cash costs to assess operating margin and profit margin.

    The MIL Network

  • IWAI opens office in Srinagar, launches river navigation projects in Jammu and Kashmir

    Source: Government of India

    Source: Government of India (4)

    The Inland Waterways Authority of India (IWAI), functioning under the Ministry of Ports, Shipping and Waterways, has established a new office in Srinagar as part of efforts to boost inland water transport infrastructure in Jammu and Kashmir. The office, located at Transport Bhawan in Srinagar, has been provided by the Jammu and Kashmir government and became operational on Tuesday.
     
    The Srinagar office will serve as the central hub for IWAI’s activities in the Union Territory, overseeing the development of river navigation infrastructure across the region. To this end, the Authority has signed a Memorandum of Understanding with the Jammu and Kashmir administration to undertake projects across three declared national waterways—NW-26 (River Chenab), NW-49 (River Jhelum), and NW-84 (River Ravi).
     
    Development works planned under the agreement include the installation of floating jetties at ten locations across the Union Territory, dredging of riverbeds to create navigable fairways, provision of night navigation aids, and the conduct of regular hydrographic surveys to ensure safe vessel movement.
     
    The initiative is part of a broader national strategy to tap into the potential of inland waterways as a sustainable mode of transport and economic driver. Under the leadership of Prime Minister Narendra Modi and the guidance of the Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, IWAI has been implementing various projects to enhance inland navigation across India.
     
    Officials said that the collaboration between IWAI and the Jammu and Kashmir administration is expected to open up new avenues for eco-tourism and economic development in the region by improving connectivity and reducing logistical costs.
  • MIL-OSI: TWFG Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    THE WOODLANDS, Texas, May 13, 2025 (GLOBE NEWSWIRE) — – Total Revenues increased 16.6% for the quarter over the prior year period to $53.8 million
    – Total Written Premium increased 15.5% for the quarter over the prior year period to $371.0 million
    – Organic Revenue Growth Rate* of 14.3% for the quarter –
    – Net income of $6.9 million for the quarter
    – Adjusted EBITDA* increased 35.3% for the quarter over the prior year period to $12.2 million

    THE WOODLANDS, Texas, May 13, 2025 (GLOBE NEWSWIRE) – TWFG, Inc. (“TWFG”, the “Company” or “we”) (NASDAQ: TWFG), a high-growth insurance distribution company, today announced results for the first quarter ended March 31, 2025.

    First Quarter 2025 Highlights

    • Total revenues for the quarter increased 16.6% to $53.8 million, compared to $46.1 million in the prior year period
    • Commission income for the quarter increased 14.7% to $48.8 million, compared to $42.5 million in the prior year period
    • Net income for the quarter was $6.9 million, compared to $6.6 million in the prior year period, and net income margin for the quarter was 12.7%
    • Diluted Earnings Per Share for the quarter was $0.09 and Adjusted Diluted Earnings Per Share* for the quarter was $0.16
    • Total Written Premium for the quarter increased 15.5% to $371.0 million, compared to $321.3 million in the prior year period
    • Organic Revenue Growth Rate* for the quarter was 14.3%
    • Adjusted Net Income* for the quarter increased 14.3% from the prior year period to $9.2 million, and Adjusted Net Income Margin* for the quarter was 17.1%
    • Adjusted EBITDA* for the quarter increased 35.3% over the prior year period to $12.2 million, and Adjusted EBITDA Margin* for the quarter was 22.6% compared to 19.5% in the prior year period

    *Organic Revenue Growth Rate, Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Diluted Earnings Per Share are non-GAAP measures. Reconciliations of Organic Revenue Growth Rate to total revenue growth rate, Adjusted Net Income and Adjusted EBITDA to net income, Adjusted Diluted Earnings Per Share to diluted earnings per share, and Adjusted Free Cash Flow to cash flow from operating activities, the most directly comparable financial measures presented in accordance with GAAP, are outlined in the reconciliation table accompanying this release.

    Gordy Bunch, Founder, Chairman, and CEO said “Our strong first quarter performance reflects the continued execution of our strategy and strength of our business model. Total revenues grew 16.6% year-over-year, and Adjusted EBITDA increased by 35.3%, and Adjusted EBITDA Margin expansion grew to 22.6%. Organic Revenue Growth of 14.3% underscores the productivity of our agents and the enduring value we deliver to our carrier partners and clients.

    Our recruiting momentum remains robust as we continue to expand our national footprint. During the quarter, we completed the acquisition of two new corporate locations, one in Ohio and one in Texas, expanded into New Hampshire, and added 17 branches across the U.S. The new locations are in line with our acquisition expectations for both revenue and EBITDA.

    As a reminder to our shareholders, newly onboarded agents typically take two to three years to reach full productivity.”

    First Quarter 2025 Results

    Total Written Premium for the first quarter of 2025 was $371.0 million, representing an increase of 15.5% compared to the prior year period. Total revenues were $53.8 million, an increase of 16.6% year-over-year.

    Organic Revenue, a non-GAAP measure that excludes contingent income, non-policy fee income, and other income, was $49.2 million for the first quarter of 2025, compared to $41.6 million in the prior year period. Organic Revenue Growth Rate was 14.3%, driven by robust new business production, moderating retention levels, rate increases, and continued growth in new business activity within one of our managing general agency (MGA) programs.

    Commission expense for the quarter totaled $31.8 million, an increase of 20.3% compared to $26.4 million in the prior year period. This increase reflects the continued growth of our business, partially offset by the one-time favorable adjustment in prior year period due to the branch conversions.

    Salaries and employee benefits were $8.2 million, an increase of 31.1% compared to $6.3 million in the first quarter of 2025. The increase includes $1.2 million of equity compensation expense and $0.7 million related to increased headcount and overall business growth.

    Other administrative expenses were $4.7 million in the quarter, up 50.9% from the prior year period. The increase reflects investments to support business growth and the absorption of public company operating costs.

    Net income for the first quarter of 2025 was $6.9 million, compared to $6.6 million in the prior year period. Net income margin was 12.7%, compared to 14.4% a year ago. Adjusted Net Income was $9.2 million for the quarter, compared to $8.1 million in the same period last year. Adjusted Net Income Margin was 17.1%, versus 17.5% in the prior year period.

    Adjusted EBITDA was $12.2 million for the first quarter, an increase of 35.3% year-over-year. Adjusted EBITDA Margin expanded to 22.6%, compared to 19.5% in the first quarter of 2024.

    Cash flow from operating activities was $15.6 million, up from $9.8 million in the prior year period. Adjusted Free Cash Flow for the quarter was $13.6 million, compared to $7.3 million in the same period a year ago.

    Liquidity and Capital Resources

    As of March 31, 2025, the Company had cash and cash equivalents of $196.4 million. We had full unused capacity on our revolving credit facility of $50.0 million as of March 31, 2025. The total outstanding term notes payable balance was $5.4 million as of March 31, 2025.

    2025 Adjusted Outlook

    Based on our strong first quarter results, the Company has updated its full-year 2025 guidance by raising the range of the outlook across all key metrics to reflect the improved visibility and confidence in the Company’s execution.

    • Organic Revenue Growth Rate*: Expected to be in the range of 12% to 16% (prior: 11% to 16%)
    • Adjusted EBITDA Margin*: Expected to be in the range of 20% to 22% (prior: 19% to 21%)
    • Total Revenues: Expected to be between $240 million and $255 million (prior: $235 million to $250 million)

    The Company is unable to provide a reconciliation to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting the timing of items that have not yet occurred, as well as quantifying certain amounts that are necessary for such reconciliation.

    *For a definition of Organic Revenue Growth Rate and Adjusted EBITDA Margin, see “Non-GAAP Financial Measures” below.

    Conference Call Information

    TWFG will host a conference call and webcast tomorrow at 9:00 AM ET to discuss these results.

    To access the call by phone, participants should register at this link, where they will be provided with the dial in details. A live webcast of the conference call will also be available on TWFG’s investor relations website at investors.twfg.com. A webcast replay of the call will be available at investors.twfg.com for one year following the call.

    About TWFG

    TWFG (NASDAQ: TWFG) is a high-growth, independent distribution platform for personal and commercial insurance in the United States and represents hundreds of insurance carriers that underwrite personal lines and commercial lines risks. For more information, please visit twfg.com.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “outlook,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the captions entitled “Risk factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K, any Quarterly Reports on Form 10-Q and the other documents that the Company files with the U.S. Securities and Exchange Commission. You should specifically consider the numerous risks outlined under “Risk factors” in the Annual Report on Form 10-K for the year ended December 31, 2024.

    Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

    Non-GAAP Financial Measures and Key Performance Indicators

    Non-GAAP Financial Measures

    Organic Revenue, Organic Revenue Growth, Adjusted Net Income, Adjusted Net Income Margin, Adjusted Diluted Earnings Per Share, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow included in this release are not measures of financial performance in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and should not be considered substitutes for GAAP measures, including revenues (for Organic Revenue and Organic Revenue Growth), net income (for Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin), diluted earnings per share (Adjusted Diluted Earnings Per Share), and cash flow from operating activities (for Adjusted Free Cash Flow), which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for revenues, net income, operating cash flow or other consolidated financial statement data prepared in accordance with GAAP. Other companies may calculate any or all of these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.

    Organic Revenue. Since the first quarter of 2025, we have utilized the revised calculation methodology for Organic Revenue to include policy fee income as it is directly correlated to MGA commission income. Our legacy calculation methodology removed policy fee income from Organic Revenue. Organic Revenue is total revenue (the most directly comparable GAAP measure) for the relevant period, excluding contingent income, non-policy fee income, other income and those revenues generated from acquired businesses with over $0.5 million in annualized revenue that have not reached the twelve-month owned mark.

    Organic Revenue Growth. Organic Revenue Growth is the change in Organic Revenue period-to-period, with prior period results adjusted to include revenues that were excluded in the prior period because the relevant acquired businesses had not reached the twelve-month-owned milestone but have reached the twelve-month owned milestone in the current period. We believe Organic Revenue Growth is an appropriate measure of operating performance because it eliminates the impact of acquisitions, which affects the comparability of results from period to period.

    Adjusted Net Income. Adjusted Net Income is a supplemental measure of our performance and is defined as net income (the most directly comparable GAAP measure) before amortization, non-recurring or non-operating income and expenses, including equity-based compensation, adjusted to assume a single class of stock (Class A) and assuming noncontrolling interests do not exist. We believe Adjusted Net Income is a useful measure because it adjusts for the after-tax impact of significant one-time, non-recurring items and eliminates the impact of any transactions that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

    We are subject to U.S. federal income taxes, in addition to state, and local taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. Adjusted Net Income pre-IPO did not reflect adjustments for income taxes since TWFG Holding Company, LLC is a limited liability company and is classified as a partnership for U.S. federal income tax purposes. Post-IPO, the calculation incorporates the impact of federal and state statutory tax rates on 100% of our adjusted pre-tax income as if the Company owned 100% of TWFG Holding Company, LLC.

    Adjusted Net Income Margin. Adjusted Net Income Margin is Adjusted Net Income divided by total revenues. We believe that Adjusted Net Income Margin is a useful measurement of operating profitability for the same reasons we find Adjusted Net Income useful and also because it provides a period-to-period comparison of our after-tax operating performance.

    Adjusted Diluted Earnings Per Share. Adjusted Diluted Earnings Per Share is Adjusted Net Income divided by diluted shares outstanding after adjusting for the effect of (i) the exchange of 100% of the outstanding Class B common stock of the Company (the “Class B Common Stock”) and Class C common stock of the Company (the “Class C Common Stock”) (together with the related limited liability units in TWFG Holding Company, LLC (the “LLC Units”)) into shares of Class A common stock of the Company (“Class A Common Stock”) and (ii) the vesting of 100% of the unvested equity awards and exchange into shares of Class A Common Stock. This measure does not deduct earnings related to the noncontrolling interests in TWFG Holding Company, LLC for the period prior to July 19, 2024, when we did not own 100% of the business. The most directly comparable GAAP financial metric is diluted earnings per share. We believe Adjusted Diluted Earnings Per Share may be useful to an investor in evaluating our operating performance and efficiency because this measure is widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon acquisition activity and capital structure. This measure also eliminates the impact of expenses that do not relate to core business performance, among other factors.

    Adjusted EBITDA. Adjusted EBITDA is a supplemental measure of our performance and is defined as EBITDA adjusted to reflect items such as equity-based compensation, interest income, other non-operating and certain nonrecurring items. EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation, and amortization. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it adjusts for significant one-time, non-recurring items and eliminates the ongoing accounting effects of certain capital spending and acquisitions, such as depreciation and amortization, that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. Our measure of Adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

    Adjusted EBITDA Margin. Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenue. We believe that Adjusted EBITDA Margin is a useful measurement of operating profitability for the same reasons we find Adjusted EBITDA useful and also because it provides a period-to-period comparison of our operating performance.

    Adjusted Free Cash Flow. Adjusted Free Cash Flow is a supplemental measure of our performance. We define Adjusted Free Cash Flow as cash flow from operating activities (the most directly comparable GAAP measure) less cash payments for tax distributions, purchases of property and equipment and acquisition-related costs. We believe Adjusted Free Cash Flow is a useful measure of operating performance because it represents the cash flow from the business that is within our discretion to direct to activities including investments, debt repayment, and returning capital to stockholders.

    The reconciliation of the above non-GAAP measures to their most comparable GAAP financial measure is outlined in the reconciliation table accompanying this release.

    Key Performance Indicators

    Total Written Premium. Total Written Premium represents, for any reported period, the total amount of current premium (net of cancellation) placed with insurance carriers. We utilize Total Written Premium as a key performance indicator when planning, monitoring, and evaluating our performance. We believe Total Written Premium is a useful metric because it is the underlying driver of the majority of our revenue.

    Contacts
    Investor Contact:
    Gene Padgett, CAO for TWFG
    Email: gene.padgett@twfg.com

    PR Contact:
    Alex Bunch, CMO for TWFG
    Email: alex@twfg.com


    Condensed Consolidated Statements of Income
    (Unaudited)
    (Amounts in thousands, except share and per share data)

        Three Months Ended
    March 31,
          2025       2024  
    Revenues        
    Commission income(1)   $ 48,785     $ 42,545  
    Contingent income     1,663       1,076  
    Fee income(2)     3,011       2,232  
    Other income     364       290  
    Total revenues     53,823       46,143  
    Expenses        
    Commission expense     31,814       26,443  
    Salaries and employee benefits     8,196       6,254  
    Other administrative expenses(3)     4,724       3,130  
    Depreciation and amortization     3,359       3,013  
    Total operating expenses     48,093       38,840  
    Operating income     5,730       7,303  
    Interest expense     83       842  
    Interest income     1,863       170  
    Other non-operating expense     1       2  
    Income before tax     7,509       6,629  
    Income tax expense     656        
    Net income     6,853       6,629  
    Less: net income attributable to noncontrolling interests     5,515       6,629  
    Net income attributable to TWFG, Inc.     1,338        
             
    Weighted average shares of common stock outstanding:        
    Basic     14,889,739      
    Diluted     15,055,553      
    Earnings per share:        
    Basic   $ 0.09      
    Diluted   $ 0.09      
             

    (1) Commission income – related party of $3,135 and $1,109 for the three months ended March 31, 2025 and 2024, respectively
    (2) Fee income – related party of $834 and $354 for the three months ended March 31, 2025 and 2024, respectively
    (3) Other administrative expenses – related party of $770 and $401 for the three months ended March 31, 2025 and 2024, respectively

    The following table presents the disaggregation of our revenues by offerings (in thousands):

        Three Months Ended March 31,
          2025       2024  
    Insurance Services        
    Agency-in-a-Box   $ 35,996     $ 31,729  
    Corporate Branches     8,223       7,276  
    Total Insurance Services     44,219       39,005  
    TWFG MGA     9,195       6,794  
    Other     409       344  
    Total revenues   $ 53,823     $ 46,143  
             

    The following table presents the disaggregation of our commission income by offerings (in thousands):

        Three Months Ended March 31,
          2025       2024  
    Insurance Services        
    Agency-in-a-Box   $ 33,358     $ 29,900  
    Corporate Branches     8,214       7,250  
    Total Insurance Services     41,572       37,150  
    TWFG MGA     7,213       5,395  
    Total commission income   $ 48,785     $ 42,545  
             

    The following table presents the disaggregation of our fee income by major sources (in thousands):

        Three Months Ended March 31,
          2025       2024  
    Policy fees   $ 1,051     $ 513  
    Branch fees     1,256       1,131  
    License fees     608       515  
    TPA fees     96       73  
    Total fee income   $ 3,011     $ 2,232  
             

    The following table presents the disaggregation of our commission expense by offerings (in thousands):

        Three Months Ended March 31,
          2025       2024  
    Insurance Services        
    Agency-in-a-Box   $ 25,954       22,028  
    Corporate Branches     1,105       862  
    Total Insurance Services     27,059       22,890  
    TWFG MGA     4,726       3,535  
    Other     29       18  
    Total commission expense   $ 31,814     $ 26,443  
             


    Condensed Consolidated Balance Sheets
    (Unaudited)
    (Amounts in thousands, except share/unit data)

        March 31, 2025   December 31, 2024
    Assets        
    Current assets        
    Cash and cash equivalents   $ 196,424     $ 195,772  
    Restricted cash     11,853       9,551  
    Commissions receivable, net     23,575       27,067  
    Accounts receivable     8,053       7,839  
    Other current assets, net     1,500       1,619  
    Total current assets     241,405       241,848  
    Non-current assets        
    Intangible assets, net     80,919       72,978  
    Property and equipment, net     3,364       3,499  
    Lease right-of-use assets, net     4,307       4,493  
    Other non-current assets     535       610  
    Total assets   $ 330,530     $ 323,428  
             
    Liabilities and Equity        
    Current liabilities        
    Commissions payable   $ 16,303     $ 13,848  
    Carrier liabilities     14,710       12,392  
    Operating lease liabilities, current     1,124       1,013  
    Short-term bank debt     1,927       1,912  
    Deferred acquisition payable, current     1,956       601  
    Other current liabilities     6,842       9,851  
    Total current liabilities     42,862       39,617  
    Non-current liabilities        
    Operating lease liabilities, net of current portion     3,119       3,372  
    Long-term bank debt     3,519       4,007  
    Deferred acquisition payable, non-current     973       1,122  
    Other non-current liabilities           24  
    Total liabilities     50,473       48,142  
    Commitment and contingencies (see Note 14)        
    Stockholders’/Members’ Equity        
    Class A common stock ($0.01 par value per share – 300,000,000 authorized, 14,904,083 and 14,811,874 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively )     149       148  
    Class B common stock ($0.00001 par value per share – 100,000,000 authorized, 7,277,651 shares issued and outstanding at March 31, 2025 and December 31, 2024)            
    Class C common stock ($0.00001 par value per share – 100,000,000 authorized, 33,893,810 shares issued and outstanding at March 31, 2025 and December 31, 2024)            
    Additional paid-in capital     58,374       58,365  
    Retained earnings     16,626       15,288  
    Accumulated other comprehensive income     65       83  
    Total stockholders’ equity attributable to TWFG, Inc.     75,214       73,884  
    Noncontrolling interests     204,843       201,402  
    Total stockholders’ equity     280,057       275,286  
    Total liabilities and equity   $ 330,530     $ 323,428  
             


    Non-GAAP Financial Measures

    A reconciliation of Organic Revenue and Organic Revenue Growth Rate to Total Revenue and Total Revenue Growth Rate, the most directly comparable GAAP measures, is as follows (in thousands):

    Revised Calculation Methodology Applied to Current Period
        Three Months Ended
    March 31,
          2025       2024  
    Total revenues   $ 53,823     $ 46,143  
    Acquisition adjustments(1)     (610 )     (1,467 )
    Contingent income     (1,663 )     (1,076 )
    Fee income     (3,011 )     (2,232 )
    Policy fee income     1,051       513  
    Other income     (364 )     (290 )
    Organic Revenue   $ 49,226     $ 41,591  
    Organic Revenue Growth(2)   $ 6,169     $ 4,780  
    Total Revenue Growth Rate(3)     16.6 %     15.8 %
    Organic Revenue Growth Rate(2)     14.3 %     13.0 %
             

    (1) Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.
    (2) Revised Organic Revenue for the three months ended March 31, 2024 and 2023, used to calculate Organic Revenue Growth for the three months ended March 31, 2025 and 2024, was $43.1 million and $36.8 million, respectively, which is adjusted to reflect revenues from acquired businesses with over $0.5 million in annualized revenue that reached the twelve-month owned mark during the three months ended March 31, 2025 and 2024, respectively. Organic Revenue Growth Rate represents the period-to-period change in Organic Revenue divided by the total adjusted Organic Revenue in the prior period.
    (3) Represents the period-to-period change in total revenues divided by the total revenues in the prior period.

    Legacy Calculation Methodology Applied to Current Period
        Three Months Ended
    March 31,
          2025       2024  
    Total revenues   $ 53,823     $ 46,143  
    Acquisition adjustments(1)     (610 )     (1,467 )
    Contingent income     (1,663 )     (1,076 )
    Fee income     (3,011 )     (2,232 )
    Other income     (364 )     (290 )
    Organic Revenue   $ 48,175     $ 41,078  
    Organic Revenue Growth(2)   $ 5,630     $ 4,822  
    Total Revenue Growth Rate(3)     16.6 %     15.8 %
    Organic Revenue Growth Rate(2)     13.2 %     13.3 %
             

    (1) Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.
    (2) Organic Revenue for the three months ended March 31, 2024 and 2023, used to calculate Organic Revenue Growth for the three months ended March 31, 2025 and 2024, was $42.5 million and $36.3 million, respectively, which is adjusted to reflect revenues from acquired businesses with over $0.5 million in annualized revenue that reached the twelve-month owned mark during the three months ended March 31, 2025 and 2024, respectively. Organic Revenue Growth Rate represents the period-to-period change in Organic Revenue divided by the total adjusted Organic Revenue in the prior period.
    (3) Represents the period-to-period change in total revenues divided by the total revenues in the prior period.

    A reconciliation of Adjusted Net Income and Adjusted Net Income Margin to Net income and Net income Margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands):

    Revised Calculation Methodology Applied to Current Period
        Three Months Ended
    March 31,
          2025       2024  
    Total revenues   $ 53,823     $ 46,143  
    Net income   $ 6,853     $ 6,629  
    Income tax expense     656        
    Acquisition-related expenses     33        
    Equity-based compensation     1,204        
    Other non-recurring items(1)           (1,477 )
    Amortization expense     3,210       2,917  
    Adjusted income before income taxes     11,956       8,069  
    Adjusted income tax expense(2)     (2,736 )      
    Adjusted Net Income   $ 9,220     $ 8,069  
    Net Income Margin     12.7 %     14.4 %
    Adjusted Net Income Margin     17.1 %     17.5 %
             
    Legacy Calculation Methodology Applied to Current Period
        Three Months Ended
    March 31,
          2025       2024  
    Total revenues   $ 53,823     $ 46,143  
    Net income   $ 6,853     $ 6,629  
    Income tax expense     656        
    Acquisition-related expenses     33        
    Equity-based compensation     1,204        
    Other non-recurring items(1)           (1,477 )
    Adjusted income before income taxes   $ 8,746     $ 5,152  
    Adjusted income tax expense(2)     (2,001 )      
    Adjusted Net Income   $ 6,745     $ 5,152  
    Net Income Margin     12.7 %     14.4 %
    Adjusted Net Income Margin     12.5 %     11.2 %
             

    (1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.
    (2) Post-IPO, we are subject to United States federal income taxes, in addition to state, local, and foreign taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. For the three months ended March 31, 2025, the calculation of adjusted income tax expense is based on a federal statutory rate of 21% and a blended state income tax rate of 1.88% on 100% of our adjusted income before income taxes as if we owned 100% of the TWFG Holding Company, LLC.

    A reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to Net income and Net income margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands):

        Three Months Ended
    March 31,
          2025       2024  
    Total revenues   $ 53,823     $ 46,143  
    Net income   $ 6,853     $ 6,629  
    Interest expense     83       842  
    Interest income     (1,863 )     (170 )
    Depreciation and amortization     3,359       3,013  
    Income tax expense     656        
    EBITDA     9,088       10,314  
    Acquisition-related expenses     33        
    Equity-based compensation     1,204        
    Interest income     1,863       170  
    Other non-recurring items(1)           (1,477 )
    Adjusted EBITDA   $ 12,188     $ 9,007  
    Net Income Margin     12.7 %     14.4 %
    Adjusted EBITDA Margin     22.6 %     19.5 %
             

    (1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.

    A reconciliation of Adjusted Free Cash Flow to Cash Flow from Operating Activities, the most directly comparable GAAP measure, for each of the periods indicated is as follows (in thousands):

        Three Months Ended
    March 31,
          2025       2024  
    Cash Flow from Operating Activities   $ 15,645     $ 9,754  
    Purchase of property and equipment     (15 )     (8 )
    Tax distribution to members(1)     (2,024 )     (2,420 )
    Acquisition-related expenses     33        
    Adjusted Free Cash Flow   $ 13,639     $ 7,326  
             

    (1) Tax distributions to members represents the amount distributed to the members of TWFG Holding Company, LLC in respect of their income tax liability related to the net income of TWFG Holding Company, LLC allocated to its members.

    A reconciliation of Adjusted Diluted Earnings Per Share to diluted earnings per share, the most directly comparable GAAP measure, is as follows:

        Three Months Ended March 31,
          2025  
    Earnings per share of common stock – diluted   $ 0.09  
    Plus: Impact of all LLC Units exchanged for Class A Common Stock(1)     0.03  
    Plus: Adjustments to Adjusted net income(2)     0.04  
    Adjusted Diluted Earnings Per Share   $ 0.16  
         
    Weighted average common stock outstanding – diluted     15,055,553  
    Plus: Impact of all LLC Units exchanged for Class A Common Stock(1)     41,171,461  
    Adjusted Diluted Earnings Per Share diluted share count     56,227,014  
         

    (1) For comparability purposes, this calculation incorporates the net income that would be distributable if all shares of Class B Common Stock and Class C Common Stock, together with the related LLC Units, were exchanged for shares of Class A Common Stock. For the three months ended March 31, 2025, this includes $5.5 million of net income on 56,227,014 weighted-average shares of common stock outstanding – diluted. For the three months ended March 31, 2025, 41,260,844 weighted average outstanding Class B Common Stock and Class C Common Stock were considered dilutive and included in the 56,227,014 weighted-average shares of common stock outstanding – diluted within diluted earnings per share calculation.
    (2) Adjustments to Adjusted Net Income are described in the footnotes of the reconciliation of Adjusted Net Income to Net Income in “Adjusted Net Income and Adjusted Net Income Margin”, which represent the difference between Net Income of $6.9 million and Adjusted Net Income of $9.2 million for the three months ended March 31, 2025. For the three months ended March 31, 2025, Adjusted Diluted Earnings Per Share include adjustments of $2.4 million to Adjusted Net Income on 56,227,014 weighted-average shares of common stock outstanding – diluted for the period presented.

    Key Performance Indicators

    The following presents the disaggregation of Total Written Premium by offerings, business mix and line of business (in thousands):

        Three Months Ended March 31,
          2025       2024  
        Amount   % of Total   Amount   % of Total
    Offerings:                
    Insurance Services                
    Agency-in-a-Box   $ 249,475     68 %   $ 218,936     68 %
    Corporate Branches     68,098     18       57,884     18  
    Total Insurance Services     317,573     86       276,820     86  
    TWFG MGA     53,389     14       44,446     14  
    Total written premium   $ 370,962     100 %   $ 321,266     100 %
                     
    Business Mix:                
    Insurance Services                
    Renewal business   $ 244,845     66 %     214,477     67 %
    New business     72,728     20       62,343     19  
    Total Insurance Services     317,573     86       276,820     86  
                     
    TWFG MGA                
    Renewal business     36,375     9       35,464     11  
    New business     17,014     5       8,982     3  
    Total TWFG MGA     53,389     14       44,446     14  
        Total written premium   $ 370,962     100 %   $ 321,266     100 %
                     
    Written Premium Retention:                
    Insurance Services       88 %       97 %
    TWFG MGA       82         81  
    Consolidated       88         94  
                     
    Line of Business:                
    Personal lines   $ 298,289     80 %   $ 254,864     79 %
    Commercial lines     72,673     20       66,402     21  
    Total written premium   $ 370,962     100 %   $ 321,266     100 %
                     

    The MIL Network

  • MIL-OSI: Carbon Streaming Announces Financial Results for the Three Months Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, May 13, 2025 (GLOBE NEWSWIRE) — Carbon Streaming Corporation (Cboe CA: NETZ) (OTCQB: OFSTF) (FSE: M2Q) (“Carbon Streaming” or the “Company”) today reported its financial results for the three months ended March 31, 2025. All figures are expressed in United States dollars, unless otherwise indicated.

    Carbon Streaming Chief Executive Officer Marin Katusa stated: “In the first quarter of 2025, Carbon Streaming made significant progress in reducing costs and improving financial sustainability, while continuing to evaluate strategic alternatives. Ongoing operating expenses have decreased substantially compared to prior years, and by May 2025, the number of individuals at the Company receiving a full-time salary was reduced to three. While we continue to pursue cost reductions, our priority in 2025 is to maximize value from our existing portfolio while exploring all strategic options to enhance shareholder value. More specifically, we will evaluate potential acquisitions, divestments, corporate transactions, and strategic partnerships. Although the voluntary carbon market continues to face challenging conditions and broader economic uncertainties persist, we remain committed to adapting to market realities and identifying the best path forward for our shareholders. In line with this commitment to shareholders, we have recently filed a statement of claim against certain former executives, board members, consultants, and associated entities in order to hold the defendants to account for actions that have caused financial harm to the Company, as outlined in the lawsuit. And with respect to the Rimba Raya, Magdalena Bay, and Sustainable Community Streams, the Company remains focused on protecting our investments and preserving our rights — as we will with all our investments.”

    Quarterly Highlights

    • Ended the year with $36.4 million in cash and no corporate debt. During the quarter, the Company converted $18.0 million in cash from US$ to C$ at an exchange rate of 1.42 C$ for every 1.00 US$. The Company continues to earn interest income on its cash.
    • Reduced the number of individuals receiving full-time salaries at the Company – including employees, consultants, and directors – from 24 at the start of 2024 to 3 full-time employees by May 2025, resulting in significant savings in ongoing operating expenses. The Chief Executive Officer is not collecting a salary, the Chief Financial Officer is receiving a part-time salary, and the Company has eliminated cash-settled director’s fees to its board of directors (“Board”).
    • Recognized a net gain on revaluation of carbon credit streaming and royalty agreements of $49 thousand (net loss on revaluation of $33.1 million for Q1 2024). The net gain on revaluation for the current period was primarily related to changes to the risk-adjusted discount rate and accretion due to the passage of time.
    • Building on the success of the previously-announced ongoing corporate restructuring plan, the Company has significantly reduced ongoing operating expenses and is continuing to review its existing streams and royalties.
    • Generated $2 thousand in settlements from carbon credit streaming and royalty agreements (settlements of $406 thousand during Q1 2024).
    • Operating loss of $1.4 million (operating loss of $36.6 million in Q1 2024).
    • Recognized net loss of $0.8 million (net loss of $35.8 million in Q1 2024).
    • Adjusted net loss was $0.5 million (adjusted net loss of $1.6 million in Q1 2024) (see the “Non-IFRS Accounting Standards Measures” section of this news release).
    • Paid $164 thousand in upfront deposits for carbon credit streaming and royalty agreements (paid $400 thousand in upfront deposits in Q1 2024).
    • In April 2025, the Company announced that it had filed a lawsuit in the Ontario Superior Court of Justice against several former executives, directors, consultants, and associated entities. Please refer to the Company’s news release titled “Carbon Streaming Announces Filing of Claim Against Former Executives and Consultants” for further information.

    Financial Highlights Summary

      Three months ended
    March 31, 2025
    Three months ended
    March 31, 2024
    Carbon credit streaming and royalty agreements    
    Revaluation of carbon credit streaming and royalty agreements $ 49   $ (33,136 )
    Settlements from carbon credit streaming and royalty agreements1   2     406  
    Other financial highlights    
    Other operating expenses   1,401     3,709  
    Operating loss   (1,351 )   (36,756 )
    Net loss   (822 )   (35,771 )
    Loss per share (Basis and Diluted) ($/share)   (0.02 )   (0.75 )
    Adjusted net loss2   (508 )   (1,596 )
    Adjusted net loss per share (Basic and Diluted) ($/share)2   (0.01 )   (0.03 )
    Statement of financial position    
    Cash3   36,444     49,008  
    Carbon credit streaming and royalty agreements3   9,292     26,980  
    Total assets3   47,098     81,596  
    Non-current liabilities3   47     1,059  
     
    1. Relates to the net cash proceeds generated from the Company’s carbon credit streaming and royalty agreements.
    2. “Adjusted net loss”, including per share amounts, is a non-IFRS® Accounting Standards (the “IFRS Accounting Standards”) financial performance measure that is used in this news release. This measure does not have any standardized meaning under the IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other issuers. For more information about this measure, why it is used by the Company, and a reconciliation to the most directly comparable measure under the IFRS Accounting Standards, see the “Non-IFRS Accounting Standards Measures” section of this news release.
    3. Cash, carbon credit streaming and royalty agreements, total assets and non-current liabilities are presented as at the relevant tabular reporting date.
     

    Portfolio Updates

    Nalgonda Rice Farming Stream: The project was registered with Verra on February 10, 2025, using the UNFCCC Clean Development Mechanism Methodology AMS-III.AU: Methane emission reduction by adjusted water management practice in rice cultivation in the VCS program (“AMS-III.AU”). Registration and first validation of the project was delayed when Verra temporarily inactivated AMS-III.AU as part of a broader review of validation and verification quality and began developing a revised rice-specific methodology to replace AMS-III.AU. During this review, Verra determined that certain projects identified as having quality issues with validations and/or verifications would remain on hold, but Core CarbonX’s projects, including the Nalgonda Rice Farming project, were approved for registration under AMS-III.AU.

    Verra released the new VCS Methodology VM0051 (Improved Management in Rice Production Systems v1.0) on February 27, 2025, which the project plans to transition to for the second monitoring period. However, the project has already applied the guidelines required under the VCS Methodology VM0051. At this time, it is not known how the transition to the new methodology will impact the project, if at all.

    Sheep Creek Reforestation Stream: In January 2025, the Company received a Notice of Adverse Impact from Mast Reforestation SPV I, LLC (“Mast”) and the parent company of Mast, Droneseed Co. d/b/a Mast Reforestation under the Sheep Creek Reforestation Stream pursuant to which, among other things, Mast advised the Company that the Sheep Creek project has experienced significantly higher than expected mortality rates and that the surviving seedlings had exhibited slower than expected growth rates. As a result, Mast indicated to the Company that it no longer expects to deliver the Company the agreed-upon 286,229 carbon removal credits, referred to as forecast mitigation units (“FMUs”) under the Climate Action Reserve’s Climate Forward program under the Sheep Creek Reforestation Stream, as Mast no longer considers the existing Sheep Creek project plan and budget to be viable. The Company has formally responded to the Notice of Adverse Impact and requested that Mast respond to the Company’s significant concerns regarding, among other things, the timing of the delivery of the Notice of Adverse Impact, and the characterization of the cause of the adverse impact. The Company is continuing to evaluate all legal avenues available under the Sheep Creek Reforestation Stream. As a result, the Company no longer anticipates generating cash flow from the Sheep Creek Reforestation Stream, and its fair value is $nil as of March 31, 2025.

    Baccala Ranch Reforestation Stream: In March 2025, Mast delivered the Company a notice of termination of the Baccala Ranch Reforestation Stream and the Baccala Ranch project, thereby confirming it will forego any plantings. The Company had not advanced any funds for the Baccala project and the closing of the Baccala Ranch Reforestation Stream remained subject to customary closing conditions.

    Enfield Biochar Stream: In April 2025, Standard Biocarbon Corporation (“Standard Biocarbon”) successfully completed an equity financing resulting in a change of control. In connection with the financing, a new CEO has been appointed to lead Standard Biocarbon through project commissioning.

    Strategy

    Carbon Streaming is currently focused on maximizing value from the existing portfolio of investments and pursuing all options to achieve that goal. During 2024, the Company underwent changes to the Board and management, including the termination of certain consulting contracts, which reduced ongoing cash expenditure and streamlined decision-making. The Company continues to focus on its previously announced evaluation of strategic alternatives with a focus on maximizing value for all shareholders. These alternatives could include acquisitions, divestments, corporate transactions, financings, other strategic partnership opportunities or continuing to operate as a public company.

    The Company’s carbon credit streaming agreements are structured to retain a portion of the cash flows from carbon credit sales, with stream-specific retention varying. Project partners typically receive the balance through ongoing delivery payments under the terms of each agreement. Cash flows are subject to fluctuations based on realized carbon credit prices and agreement terms. As the Company continues to evaluate its strategic direction, it remains focused on optimizing portfolio economics and managing exposure to market volatility.

    Outlook

    Carbon Streaming continues to reposition itself for success and for maximizing shareholder value amid ongoing challenges. In May 2024, as part of its ongoing corporate restructuring first initiated in 2023, the Company announced changes to its senior management and Board after constructive discussions with certain shareholders. The Company continues to evaluate strategic alternatives for the business and remains focused on cash flow optimization through the reduction of operating expenses and a reassessment of its existing streams and royalties. Building on the previous measures implemented by the Company to reduce ongoing operating expenses, further steps have been taken in recent months, including significantly reducing employee headcount, renegotiating and amending vendor agreements to lower costs, eliminating cash-settled director’s fees to the Board and terminating certain consulting contracts. As the Company’s broader strategy continues to evolve, these recent steps are expected to result in significant reductions to annualized ongoing operating expenses when compared to 2024.

    While the Company aims to increase cash flow generation through the sale of carbon credits from several streaming agreements over the next year, there remains ongoing uncertainty regarding the evolving nature of carbon markets, including potential registry delays, project-specific issues, and methodology-related risks, in addition to impacts the industry may face as a result of general economic, political and regulatory conditions. In 2024, the Company recognized a decrease in the fair values of the Rimba Raya Stream, the Magdalena Bay Blue Carbon Stream, the Sustainable Community Stream, and the Sheep Creek Reforestation Stream to $nil as a result of the failure of the respective projects to meet their obligations under the stream agreements and ongoing legal disputes. The Company is actively pursuing all available legal remedies to protect its investments and enforce its contractual rights. Given the multiple ongoing litigation matters, the outcomes remain uncertain and could materially impact the Company’s financial position and strategic direction. Please refer to the “Legal Proceedings” section of the Company’s most recently filed MD&A for further information.

    Given the evolving nature of carbon markets and ongoing legal considerations, Carbon Streaming is focussed on maximizing value from the existing portfolio of investments and pursuing all options to achieve that goal.

    For a comprehensive discussion of the risks, assumptions and uncertainties that could impact the Company’s strategy and outlook, including without limitation, changes in demand for carbon credits and Indonesian developments described herein, investors are urged to review the section of the Company’s most recently filed AIF entitled “Risk Factors” a copy of which is available on SEDAR+ at www.sedarplus.ca.

    About Carbon Streaming

    Carbon Streaming’s focus is on projects that generate high-quality carbon credits and have a positive impact on the environment, local communities, and biodiversity, in addition to their carbon reduction or removal potential.

    ON BEHALF OF THE COMPANY:
    Marin Katusa, Chief Executive Officer
    Tel: 365.607.6095
    info@carbonstreaming.com
    www.carbonstreaming.com

    Investor Relations
    investors@carbonstreaming.com

    Media
    media@carbonstreaming.com

    Non-IFRS Accounting Standards Measures

    Adjusted Net Loss and Adjusted Loss Per Share

    The term “adjusted net loss” in this news release is not a standardized financial measure under the IFRS Accounting Standards and therefore may not be comparable to similar measures presented by other companies where similar terminology is used. These non-IFRS Accounting Standards measures should not be considered in isolation or as a substitute for measures of performance, cash flows and financial position as prepared in accordance with the IFRS Accounting Standards. Management believes that these non-IFRS Accounting Standards measures, together with performance measures and measures prepared in accordance with the IFRS Accounting Standards, provide useful information to investors and shareholders in assessing the Company’s liquidity and overall performance.

    Adjusted net loss is calculated as net and comprehensive loss and adjusted for the revaluation of carbon credit streaming and royalty agreements, the revaluation of warrant liabilities, the impairment loss on early deposit interest receivable, the revaluation of derivative liabilities, the revaluation of the convertible note, the impairment loss on investment in associate, the gain on dissolution of associate, and the corporate restructuring which the Company views as having a significant non-cash or non-continuing impact on the Company’s net and comprehensive loss calculation and per share amounts. Adjusted net loss is used by the Company to monitor its results from operations for the period.

    The following table reconciles net and comprehensive loss to adjusted net loss:

      Three months ended
    March 31, 2025
    Three months ended
    March 31, 2024
    Net loss and comprehensive loss $ (822 ) $ (35,771 )
    Adjustment for non-continuing or non-cash settled items:    
    Revaluation of carbon credit streaming and royalty agreements   (49 )   33,136  
    Revaluation of warrant liabilities   (114 )   (334 )
    Litigation and corporate restructuring   477     1,373  
    Adjusted net loss   (508 )   (1,596 )
    Loss per share (Basic and Diluted) ($/share)   (0.02 )   (0.75 )
    Adjusted net loss per share (Basic and Diluted) ($/share)   (0.01 )   (0.03 )
                 

    Cautionary Statement Regarding Forward-Looking Information

    This news release contains certain forward-looking statements and forward-looking information (collectively, “forward-looking information”) within the meaning of applicable securities laws. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, are forward-looking information, including, without limitation, statements regarding the anticipated impact of changes to the Company’s Board and management; the impact of the Company’s restructuring strategies, including evaluation of strategic alternatives; the ability of the Company to execute on expense reductions and savings from operating cost reduction measures; statements with respect to cash flow optimization and generation; its sales strategy; supporting the Company’s carbon streaming and royalty partners; timing and the amount of future carbon credit generation and emission reductions and removals from the Company’s existing streaming and royalty agreements; statements with respect to the projects in which the Company has streaming and royalty agreements in place; statements with respect to the Company’s growth objectives and potential and its position in the voluntary carbon markets; statements with respect to execution of the Company’s portfolio and partnership strategy; statements regarding the Company holding certain former executives, directors, consultants, and associated entities to account. statements with respect to the ongoing legal process to protect the Company’s investment in the Rimba Raya project and to enforce its legal and contractual rights; and statements regarding the Company’s intention to strictly enforce its legal and contractual rights under the Sustainable Community Stream and the Magdalena Bay Blue Carbon Stream and the Sheep Creek Reforestation Stream.

    When used in this news release, words such as “estimates”, “expects”, “plans”, “anticipates”, “will”, “believes”, “intends” “should”, “could”, “may” and other similar terminology are intended to identify such forward-looking information. This forward-looking information is based on the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. They should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. Factors that could cause actual results or events to differ materially from current expectations include, among other things: general economic, market and business conditions and global financial conditions, including fluctuations in interest rates, foreign exchange rates and stock market volatility; volatility in prices of carbon credits and demand for carbon credits; change in social or political views towards climate change, carbon credits and environmental, social and governance initiatives and subsequent changes in corporate or government policies or regulations and associated changes in demand for carbon credits; the Company’s expectations and plans with respect to current litigation, arbitration and regulatory proceedings; limited operating history for the Company’s current strategy; concentration risk; inaccurate estimates of project value, which may impact the ability of the Company to execute on its growth and diversification strategy; dependence upon key management; impact of corporate restructurings; the inability of the Company to optimize cash flows or sufficiently reduce operating expenses; reputational risk; risks arising from competition and future acquisition activities failure or timing delays for projects to be registered, validated and ultimately developed and for emission reductions or removals to be verified and carbon credits issued (and other risks associated with carbon credits standards and registries); foreign operations and political risks including actions by governmental authorities, including changes in or to government regulation, taxation and carbon pricing initiatives; uncertainties and ongoing market developments surrounding the validation and verification requirements of the voluntary and/or compliance markets; due diligence risks, including failure of third parties’ reviews, reports and projections to be accurate; dependence on project partners, operators and owners, including failure by such counterparties to make payments or perform their operational or other obligations to the Company in compliance with the terms of contractual arrangements between the Company and such counterparties; failure of projects to generate carbon credits, or natural disasters such as flood or fire which could have a material adverse effect on the ability of any project to generate carbon credits; volatility in the market price of the Company’s common shares or warrants; the effect that the issuance of additional securities by the Company could have on the market price of the Company’s common shares or warrants; global health crises, such as pandemics and epidemics; and the other risks disclosed under the heading “Risk Factors” and elsewhere in the Company’s Annual Information Form dated as of March 31, 2025 filed on SEDAR+ at www.sedarplus.ca.

    Any forward-looking information speaks only as of the date of this news release. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.

    The MIL Network

  • MIL-OSI USA: Risch, Luján Introduce Legislation to Improve AI Testing and Evaluation Systems

    US Senate News:

    Source: United States Senator for Idaho James E Risch

    WASHINGTON – U.S. Senators Jim Risch (R-Idaho) and Ben Ray Luján (D-N.M.) introduced the Testing and Evaluation Systems for Trusted Artificial Intelligence (TEST) AI Act of 2025.

    This legislation would improve the federal government’s ability to test and evaluate Artificial Intelligence (AI) systems to drive innovation, protect national security, and build trust in these technologies.

    “While AI offers an opportunity to revolutionize American research and innovation, we must be cognizant of bad actors and potential threats to privacy and national security,” said Risch. “The Idaho National Laboratory is already a leader in AI, national security, and cybersecurity, and the TEST AI Act will use the National Labs’ capabilities to establish safeguards to prevent misuse of this growing technology.”

    “AI has reached every sector in our country and driven innovation, but we cannot ignore the vulnerabilities and risks that come with it. While these systems have the power to change lives, they can also fall short – providing inaccurate or biased data – and are at risk of malicious attacks or misuse by our adversaries,” said Luján. “The TEST AI Actaddresses these shortcomings by creating government testbeds to better evaluate AI systems. This will help leverage the talent of our National Laboratories and strengthen the federal government’s ability to implement responsible guardrails that protect our national security and the American people.”

    Risch and Luján were joined by U.S. Senators Marsha Blackburn (R-Tenn.), Dick Durbin (D-Ill.), and Peter Welch (D-V.T.) in introducing the TEST AI Act.

    The TEST AI Act directs the National Institute for Standards and Technology (NIST) to collaborate with the Department of Energy (DOE) to establish a testbed pilot program to develop and refine standards for evaluating AI systems. By laying the groundwork for broader national evaluation standards through a transparent and collaborative approach, the TEST AI Act would ensure that AI systems used by federal agencies are trustworthy, secure, and objective.

    The TEST AI Act would:

    • Codify collaboration between NIST and DOE to evaluate AI models;

    • Improve public-private partnerships through an AI Testing Working Group to develop standards for performance, reliability, security, privacy, and bias; and  

    • Create a public strategy for testing and the construction of testbeds, and a report to Congress on the results and recommendations for future standards development.

    Senators Risch, Luján, Blackburn, and Durbin co-lead the Senate National Labs Caucus, which identifies legislative opportunities to elevate the National Labs’ visibility and meet national energy and security objectives while solidifying U.S. leadership in critical scientific sectors. ?

    MIL OSI USA News

  • MIL-OSI: Best VPNs U.S.A. 2025: NordVPN Ranked Top of VPN Services

    Source: GlobeNewswire (MIL-OSI)

    Chicago, May 13, 2025 (GLOBE NEWSWIRE) —

    Following a comprehensive evaluation, NordVPN, a VPN service that encrypts internet connections, hides IP addresses, and keeps online activities private, has outpaced its competitors and emerged as the clear leader among the crowded field of virtual private networks.

    CLICK HERE TO GET THE BEST VPN IN THE UNITED STATES: NORDVPN

    In recent times, internet users across the United States have become increasingly conscious of online security, data privacy, and the growing threat of surveillance, making the use of VPN move from just another niche tool to a digital utility. And with a swarm of VPNs available in the market now, a coalition of privacy advocates, technology journalists, and cybersecurity experts has come to a common ground regarding NordVPN being the ultimate VPN for the American user.

    CLICK HERE TO GET THE BEST VPN IN THE UNITED STATES: NORDVPN

    NordVPN has distinguished itself from the rest of the VPNs available in the U.S. by having a combination of technology and relentless focus on user empowerment. The effect of putting these two together, as noted by most users, is that the VPN gets better with time. By having users give feedback and, in turn, implementing the same by utilizing cutting-edge technologies to solve any issue, NordVPN has soared above the rest of its competitors, allowing it to clinch the top spot.

    Getting started with NordVPN is as easy as following the steps below:

    Another aspect that has gone a long way in the top ranking of NordVPN as the best VPN service in the U.S., as seen by the experts, is its technical superiority. This is evident from the platform’s proprietary NordLynx protocol, which leverages WireGuard’s technology to ensure that the speed of connections is maintained without compromising security. For this reason, users have highlighted that they can stream, play online games, and even browse without any delays, which has long plagued the VPN services in the country.

    In addition to its technical superiority, NordVPN has an unwavering commitment to transparency, which has significantly affected its ranking. Concerning this, NordVPN has implemented a no-logs policy, which independent parties frequently audit. By doing so, many users have reported that they are guaranteed their privacy, which they hold so precious. And, since data breaches and unauthorized tracking have become disturbingly common, such guarantees offer invaluable peace of mind to the users.

    When it comes to its infrastructure, NordVPN still leads the field. With over 7,000 servers spread across 118 countries worldwide, including hundreds spread across major cities in the U.S., NordVPN has continually provided its users with fast, stable, and secure connections no matter where they are located. Also, courtesy of the broad coverage, data from users reveals that American users can bypass regional restrictions, access global content, and maintain consistent speeds even during peak usage times. Experts have also observed that this is possible since, by distributing traffic across its vast infrastructure, NordVPN minimizes congestion and latency.

    Another cornerstone of NordVPN’s success is its exceptional user interface that makes advanced online privacy accessible to everyone, from newcomers to the tech world to seasoned professionals. First-hand experiences describe the platform as sleek and easy to maneuver across all major devices, including Windows, macOS, iOS, Android, and even smart TVs. This is evident through some of its features, such as Quick Connect, which automatically selects the fastest and most secure server, and clear navigation menus, which make it easy to explore the platform. By incorporating all these, NordVPN has balanced simplicity and prowess, making it the best VPN service in the U.S. in 2025.

    Another differentiator that has seen NordVPN cling to the top ranking as the best VPN service in the U.S. is its customer support team. Looking at the platform, it is clear that it offers a 24/7 live chat service that offers not only a detailed knowledge base but also rapid response times. With all these in play, users and industry experts agreed that this is part of NordVPN’s winning formula. With this ability to maintain high customer satisfaction while extending its user base, NordVPN displays its operational excellence, making it the best in the virtual private network space.

    As digital threats evolve, NordVPN has also demonstrated leadership in proactive security measures. For instance, over the past year, NordVPN launched a new feature, which includes, but is not limited to, Threat Protection Pro, an advanced tool that blocks malware, trackers, and intrusive ads even when users are not connected to the VPN.

    Another security measure that NordVPN has incorporated into its platform is the Double VPN (multi-hop) option, which has proved useful to people who demand the highest level of anonymity. It functions by routing internet traffic through two separate servers, adding an extra layer of security that makes it even harder for anyone to trace online activity. With these, among other features such as the Onion Over VPN, American users and industry experts agree that NordVPN is the best VPN service in the U.S.

    With this latest ranking, NordVPN reaffirms its position as the leading VPN choice for American users in 2025 and beyond. As online privacy becomes more essential than ever, NordVPN remains committed to delivering secure, fast, and user-friendly solutions that empower people to take control of their digital lives.

     NordVPN Support:

    • https://support.nordvpn.com/hc/en-us
    • support@nordaccount.com

    Disclaimer & Affiliate Disclosure

    The information provided in this article is for general informational and promotional purposes only. While every effort has been made to ensure the accuracy and reliability of the content, no guarantees are made regarding its completeness, timeliness, or factual accuracy. Any opinions expressed are those of independent analysts and contributors, not necessarily reflective of any official position or endorsement by the publisher or its syndication partners.

    This article may contain references to products or services for which compensation is received through affiliate partnerships. This means that, at no additional cost to the reader, the publisher may earn a commission if a purchase is made through a featured link. These affiliate relationships do not influence the objectivity of the content, which is intended to offer insight based on publicly available data and user feedback.

    All product names, logos, brands, and trademarks featured are the property of their respective owners. Any mention of third-party trademarks or brand names does not imply endorsement by or affiliation with those entities.

    Readers are encouraged to conduct their own due diligence before making any purchasing decisions. Neither the publisher, contributors, nor syndication partners accept responsibility for any loss or damage resulting directly or indirectly from the use of the information or reliance upon the content presented herein. Furthermore, this content is not intended as a substitute for professional advice, including but not limited to legal, financial, or cybersecurity guidance.

    Should there be any inadvertent typographical errors, omissions, or factual inaccuracies, they are unintentional, and appropriate corrections will be made upon verification.

    This release may be syndicated or republished by third-party distribution channels, all of whom are held harmless and are not responsible for the article’s original content or any conclusions drawn therefrom.

    The MIL Network

  • MIL-OSI: NowVertical Named Qlik Latin America Channel Growth Partner of the Year 2024

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, May 13, 2025 (GLOBE NEWSWIRE) — NowVertical Group Inc. (TSXV: NOW) (“NowVertical” or the “Company”), a leading data and AI solutions provider, today announced it has been awarded the Qlik Channel Growth Partner of the Year for 2024 in Latin America.

    This achievement follows NowVertical’s recent 2025 Google Cloud Data Analytics Partner of the Year award for Latin America, The recognition highlights NowVertical ‘s leadership in delivering outstanding customer outcomes through impactful data and analytics solutions tailored to the unique demands of customers.

    The annual Qlik Regional Partner Awards recognize select partners for demonstrating exceptional expertise and innovation in their respective markets. Winners deliver measurable business outcomes and strategic value, enabling customers in key regions to harness their data effectively and achieve rapid success.

    “Partners like NowVertical are what makes our regional ecosystem so powerful—deep local knowledge, trusted customer relationships, and a relentless focus on delivering real results,” said David Zember, Senior Vice President, WW Channels and Alliances at Qlik. “Their ability to move quickly and solve complex challenges close to home is what drives lasting impact. We’re proud to celebrate this success and excited for what we’ll achieve together next.”

    “Being recognised by Qlik reflects the strength of our global partnerships and our shared commitment to delivering high-impact, enterprise-level outcomes,” said Sandeep Mendiratta, CEO of NowVertical. “We’re proud to work with hyperscaling technologies to solve our customers’ most complex data challenges with speed, precision, and scale.”

    This award marks another milestone in NowVertical’s deep, trusted relationships with the world’s most advanced data and cloud platforms. Through these partnerships, NowVertical is uniquely positioned to deliver integrated, scalable solutions that help enterprise clients unlock data, AI and accelerate transformation.

    About NowVertical Group Inc.
    The Company is a global data and analytics company which helps clients transform data into tangible business value with AI, fast. Offering a comprehensive suite of solutions and services the Company enables clients to quickly harness the full potential of their data, driving measurable outcomes and accelerating potential return on investment. Enterprises optimize decision-making, improve operational efficiency, and unlock long-term value from their data using the Company’s AI-Infused first party and third-party technologies. NowVertical is growing organically and through strategic acquisitions.

    For further details about NowVertical, please visit www.nowvertical.com.

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    For further information, please contact:

    Andre Garber, CDO
    IR@nowvertical.com

    Investor Relations: Bristol Capital Ltd.
    Stefan Eftychiou
    stefan@bristolir.com
    (905) 326-1888 x60

    Forward-Looking Statements

    This news release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws (together “forward-looking statements”). Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies, certain of which are unknown. Forward-looking statements generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the forward-looking statements and the forward-looking statements are not guarantees of future performance. Forward-looking statements are qualified in their entirety by inherent risks and uncertainties, including: adverse market conditions; risks inherent in the data analytics and artificial intelligence sectors in general; regulatory and legislative changes and other risk factors identified in documents filed by the Company under its profile at www.sedarplus.com, including the Company’s management’s discussion and analysis for the year ended December 31, 2024. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

    The MIL Network

  • MIL-OSI Europe: Text adopted – 2023 and 2024 reports on Türkiye – P10_TA(2025)0092 – Wednesday, 7 May 2025 – Strasbourg

    Source: European Parliament

    The European Parliament,

    –  having regard to the European Council conclusions of 17 and 18 April 2024, 30 June 2023, 23 June 2022, 24 June 2021 and 12 December 2019, and to all relevant previous Council and European Council conclusions,

    –  having regard to Türkiye’s membership of the Council of Europe and NATO,

    –  having regard to the Agreement between the European Union and the Republic of Turkey on the readmission of persons residing without authorisation(1) (EU-Turkey Readmission Agreement),

    –  having regard to the statement of the members of the European Council of 25 March 2021 on Türkiye,

    –  having regard to the ‘EU-Turkey statements’ of 18 March 2016 and 29 November 2015,

    –  having regard to the ‘Turkey Negotiating Framework’ of 3 October 2005,

    –  having regard to the declaration issued by the European Community and its Member States on 21 September 2005 following the declaration made by Turkey upon its signature of the Additional Protocol to the Ankara Agreement on 29 July 2005,

    –  having regard to the Council conclusions of December 2006 and March 2020, and to the Presidency Conclusions of the European Council in Copenhagen of 21-22 June 1993, also known as the Copenhagen Criteria,

    –  having regard to the Council conclusions on Enlargement of 17 December 2024 and of 12 December 2023,

    –  having regard to the International Law of the Sea and the United Nations Convention on the Law of the Sea (UNCLOS),

    –  having regard to the Commission communication of 30 October 2024 on EU enlargement policy (COM(2024)0690) and to the accompanying Türkiye 2024 Report (SWD(2024)0696),

    –  having regard to the Commission communication of 8 November 2023 on EU enlargement policy (COM(2023)0690) and to the accompanying Türkiye 2023 Report (SWD(2023)0696),

    –  having regard to Special report 06/2024 of the European Court of Auditors of 24 April 2024 entitled ‘The Facility for Refugees in Turkey – Beneficial for refugees and host communities, but impact and sustainability not yet ensured’,

    –  having regard to the joint communications from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy to the European Council of 29 November 2023 (JOIN(2023)0050) and of 22 March 2021 (JOIN(2021)0008) on the state of play of EU-Türkiye political, economic and trade relations,

    –  having regard to the Commission communication of 19 December 2024 entitled ‘Eighth Annual Report of the Facility for Refugees in Türkiye’ (COM(2024)0593),

    –  having regard to the fundamental principles of international law and to the Charter of the United Nations, the 1977 and the 1979 High-Level Agreements between the leaders of the two communities, and the relevant resolutions of the UN Security Council on Cyprus, including Resolution 186 (1964) of 4 March 1964, which reaffirms the sovereignty of the Republic of Cyprus, Resolution 550 (1984) of 11 May 1984 on secessionist actions in Cyprus, Resolution 789 (1992) of 25 November 1992, and Resolution 2537 (2020) on the UN Peacekeeping Force in Cyprus (UNFICYP),

    –  having regard to Article 46 of the European Convention on Human Rights (ECHR), which states that the contracting parties undertake to abide by the final judgment of the European Court of Human Rights (ECtHR) in any case to which they are parties, and to the ensuing obligation of Türkiye to implement all judgments of the ECtHR,

    –  having regard to the relevant resolutions of the Committee of Ministers of the Council of Europe,

    –  having regard to the 2025 Freedom in the World report published by Freedom House,

    –  having regard to the 2024 World Press Freedom Index published by Reporters Without Borders,

    –  having regard to the January 2025 prison statistics report published by the Civil Society in the Penal System Association (CISST) and to the 2024 country profile for Türkiye published by Prison Insider,

    –  having regard to the Global Gender Gap Report 2024 published by the World Economic Forum,

    –  having regard to recent reports of the We Will Stop Femicide Platform (Kadın Cinayetlerini Durduracağız Platformu),

    –  having regard to the UNESCO statement on Hagia Sophia of 10 July 2020, and to the relevant UNESCO World Heritage Committee decisions 44 COM 7B.58 (2021) and 45 COM 7B.58 (2023), adopted in its 44th and 45th sessions respectively,

    –  having regard to its previous resolutions on Türkiye, in particular those of 13 September 2023 on the 2022 Commission Report on Türkiye(2), of 7 June 2022 on the 2021 Commission Report on Turkey(3), and of 26 November 2020 on escalating tensions in Varosha following the illegal actions by Türkiye and the urgent need for the resumption of talks(4),

    –  having regard to its resolution of 29 February 2024 on deepening EU integration in view of future enlargement(5),

    –  having regard to its resolution of 15 April 2015 on the centenary of the Armenian Genocide(6),

    –  having regard to its resolutions of 5 May 2022 on the case of Osman Kavala in Turkey(7), of 10 October 2024 on the case of Bülent Mumay in Türkiye(8) and of 13 February 2025 on recent dismissals and arrests of mayors in Türkiye(9),

    –  having regard to European Commission President Ursula von der Leyen’s visit to Ankara in December 2024,

    –  having regard to Rule 55 of its Rules of Procedure,

    –  having regard to the report of the Committee on Foreign Affairs (A10-0067/2025),

    A.  whereas Türkiye remains a candidate for EU accession, and EU membership remains the repeatedly declared political goal of the Turkish Government, although the gap with the values and interests of the EU is growing; whereas EU accession negotiations have effectively been at a standstill since 2018, owing to the deterioration of the rule of law and democracy in Türkiye;

    B.  whereas any accession country is expected to respect democratic values, the rule of law and human rights, and to abide by EU law; whereas Türkiye needs to credibly demonstrate its commitment to closer relations and alignment with the European Union in order to reinvigorate its European perspective; whereas being a candidate country presumes a willingness to progressively approach and align with the EU in all aspects, including values, interests, standards and policies, inter alia with its common foreign and security policy, to respect and uphold the Copenhagen criteria, and to pursue and maintain good neighbourly relations with the EU and all of its Member States without discrimination; whereas the tensions between the EU and Türkiye in relation to the situation in the Eastern Mediterranean have de-escalated but not ceased; whereas Türkiye has repeatedly been asked to refrain from all actions which violate the sovereignty and sovereign rights of all EU Member States and are in breach of international and EU law;

    C.  whereas the 2023 Commission progress report on Türkiye painted a picture of continued backsliding, while its latest progress report of 2024 appears to present a slightly more positive overall picture of progress on enlargement-related reforms in Türkiye, such as in the area of economic and monetary policies; whereas this cannot, however, be applied to the core matters related to democracy and fundamental rights, which have deteriorated even further since the release of the Commission’s latest report; whereas the gap between Türkiye and the EU’s values and normative framework has therefore remained unaddressed during the recent period with the persistent use of laws and measures aimed at curtailing the rule of law and human rights, fundamental freedoms and civil liberties;

    D.  whereas the joint communication on the state of play of EU-Türkiye relations of 29 November 2023 struck a more positive note, putting forward a set of recommendations on cooperating in areas of joint interest in a phased, proportionate and reversible manner and based on the established conditionalities; whereas only a few concrete steps in line with the commitments therein have been taken so far; whereas the April 2024 European Council mandated Coreper to advance in the implementation of this joint communication; whereas nevertheless this joint communication has not yet received a clear political endorsement by the Council;

    E.  whereas Türkiye is a member of the Council of Europe and is therefore bound by the judgments of the ECtHR; whereas owing to its failure to apply landmark ECtHR rulings, Türkiye is currently facing historical infringement proceedings; whereas Türkiye consistently ranks among the countries most frequently found in violation of the human rights and fundamental freedoms protected by the European Convention on Human Rights; whereas as of late November 2024, Türkiye had the highest number of pending cases before the ECtHR, with 22 450 applications, representing 36,7 % of the Court’s total caseload of 61 250 applications;

    F.  whereas Türkiye is classified as ‘not free’ by Freedom House and has experienced one of the worst declines in the level of freedom in the world in the past 10 years; whereas Türkiye ranks 158th out of 180 countries in the 2024 World Press Freedom Index; whereas the Turkish Government has closed dozens of media outlets, routinely blocks online articles, is reported to control 85 % of national media and uses its state agency Anadolu as an organ of propaganda;

    G.  whereas the Turkish constitution provides for sufficient protection of fundamental rights, but the practice of the institutions and the critical state of the judiciary, including the lack of respect for Constitutional Court rulings, are the main reasons for the dire situation of the rule of law and human rights in the country, issues repeatedly described in the reports of the EU, the Council of Europe and international organisations;

    H.  whereas Türkiye has the highest incarceration rate and the largest prison population of all Council of Europe Member States, with an overcrowded prison population that has grown by 439 % between 2005 and 2023 and currently represents more than a third of all inmates of Council of Europe countries;

    I.  whereas Türkiye is ranked 127th out of 146 countries in the 2024 Global Gender Gap Index, underscoring severe gender inequality and systemic failures in protecting women’s rights; whereas according to the 2024 report of the We Will Stop Femicide Platform (Kadın Cinayetlerini Durduracağız Platformu), 394 women were murdered by men and 259 women were found dead in suspicious circumstances in Türkiye in 2024, the highest number recorded since the civil society group started collecting data in 2010; whereas in its 2023 report, the platform noted that 315 women were killed by men, and 248 women were found dead in suspicious circumstances;

    J.  whereas in recent months, Türkiye has taken steps towards the resumption of a process for a peaceful resolution of the Kurdish question; whereas on 27 February 2025 jailed militant leader Abdullah Öcalan called on his Kurdistan Workers’ Party (PKK) to disarm and disband, providing a historic opportunity to end the Turkish-Kurdish conflict; whereas these efforts have been accompanied by increasing repression and the curtailment of the powers of democratic local governments, including the dismissal of elected Kurdish and other opposition mayors;

    K.  whereas, alongside being a candidate for EU accession, Türkiye is a NATO ally and a key partner in the areas of trade, economic relations, security, the fight against terrorism, and migration; whereas Türkiye continues to play a key role in the region, acts as a bridge between Europe and Asia, and remains a key partner for the stability of the wider East Mediterranean region; whereas Türkiye continues to play a significant role in the Syrian conflict and maintains a military presence in northern Syria;

    L.  whereas Türkiye has not aligned with EU sanctions against Russia; whereas trade between Türkiye and Russia has nearly doubled since the EU’s imposition of sanctions against Russia; whereas despite some steps taken, Türkiye has not prevented its territory from being used to circumvent EU sanctions against Russia;

    M.  whereas the 2024 Commission progress report on Türkiye states that, as at 30 September 2024, the country maintained a very low alignment rate of 5 % with relevant statements of the High Representative on behalf of the EU and with relevant Council decisions, compared to 9 % in 2023;

    N.  whereas Türkiye is the EU’s fifth largest trade partner, and the EU is Türkiye’s largest trading partner by far, as well as its primary source of foreign direct investment;

    O.  whereas in the past year, the level of engagement between the EU and Türkiye has increased in terms of both technical and high-level meetings in sectoral areas;

    P.  whereas Türkiye has applied for membership of BRICS+ and shown interest in joining the Shanghai Cooperation Organisation (SCO);

    Q.  whereas following a period of unorthodox economic policy, Türkiye has implemented a tighter monetary policy over the past year leading to a reduction in external imbalances and a moderation of inflationary pressures;

    R.  whereas in March 2025 the Turkish Government spent at least USD 10 billion of its currency reserves to counteract the collapse of its financial markets and the devaluation of the lira caused by its decision to arrest and detain Mayor of Istanbul and prominent opposition politician Ekrem İmamoğlu; whereas the Turkish Government’s undermining of Turkish democracy and the rule of law creates an unfavourable environment for foreign direct investment and hence weakens the Turkish economy, with grave consequences for the socio-economic situation of Turkish citizens;

    S.  whereas Türkiye hosts the largest refugee population in the world, with around 3,1 million registered refugees, mainly from Syria, Iraq and Afghanistan; whereas since 2011 the EU has directed more than EUR 10 billion to assisting refugees and host communities in Türkiye; whereas according to a credible investigative report by Lighthouse Reports and eight media partners, the EU is funding removal centres in Türkiye implicated in the detention, abuse and forced deportations of refugees under the guise of voluntary return;

    T.  whereas in addition to the emergency assistance coordinated via the EU Civil Protection Mechanism, with an estimated financial value of EUR 38 million, the EU provided EUR 78,2 million in humanitarian aid for the earthquake response in 2023, and EUR 26 million in humanitarian aid in 2024; whereas the EU signed an additional EUR 400 million in assistance under the EU Solidarity Fund to finance recovery operations following the devastating earthquake;

    U.  whereas Türkiye has systematically misused counterterrorism laws to target elected officials, opposition politicians, journalists and human rights defenders, among others;

    Commitment to EU accession

    1.  Recognises the long-standing aspirations of Turkish civil society regarding accession to the European Union; welcomes the Turkish Government’s recent statements reiterating its commitment to EU membership as a strategic goal amid an effort to revitalise EU-Türkiye relations in line with relevant European Council conclusions in a phased, proportionate and reversible manner; recognises the EU’s commitment to fostering this engagement through enhanced dialogue and cooperation but encourages it to review its expectations for engagement in the foreseeable future, in light of the deterioration of democratic standards that has been pushing the country towards an authoritarian model over the past decade, accelerating recently with the politically motivated arrest of President Recep Tayyip Erdoğan’s main political opponent, Mayor of Istanbul Metropolitan Municipality Ekrem İmamoğlu;

    2.  Stresses that EU membership is contingent on fulfilling the accession (Copenhagen) criteria, which require stable institutions that guarantee democracy, the rule of law, human rights, respect for and the protection of minorities, good neighbourly relations, respect for international law and alignment with the EU CFSP; further notes that these are absolute criteria, not issues subject to transactional strategic considerations and negotiations; stresses that recognition of all Member States is a necessary component of the accession process;

    3.  Regrets, in this regard, that the aforementioned positive statements have not been accompanied by any concrete actions by the Turkish authorities to close the persistent and vast gap between Türkiye and the EU on values and standards, particularly with regard to the fundamentals of the accession process; reiterates its previously adopted conclusion that the Turkish Government continues to show, as it has done for the past few years, a clear lack of political will to carry out the necessary reforms to reactivate the accession process and continues to pursue a deeply entrenched authoritarian understanding of the presidential system;

    4.  Acknowledges the strategic and geopolitical importance of Türkiye, and its increasing presence and influence in areas critical to international security, such as the Black Sea region, including Ukraine, and the Middle East; reiterates that Türkiye is a strategic partner and NATO ally, and a country with which the EU has close relations in the areas of security, trade, economy and migration; welcomes closer cooperation between Türkiye and the EU, to which the Turkish Government has made frequent reference, but stresses that this cannot in any way be a substitute for the necessary real progress which Türkiye, as a candidate country, needs to make with regard to meeting the fundamental requirements for accession; highlights, in this regard, that there are no shortcuts in the accession process and that no argument can be put forward to avoid discussing the democratic principles which are at the core of the accession process;

    5.  Notes that the Commission’s Türkiye report 2024 paints a more positive picture of reform implementation in the context of Türkiye’s accession process than the Türkiye report 2023, shifting from further deterioration to ‘no progress’ with regard to the rule of law and human rights issues; is of the opinion, however, that at least in key areas such as democracy, rule of law and fundamental rights, this is due to the fact that a very low point had already been reached and this situation has remained unchanged;

    6.  Further takes note of a nuanced shift in focus of the Türkiye report 2024, by contrast with the 2023 report, away from the accession process towards a strategic partnership between the European Union und Türkiye; is of the opinion that the critical state of the accession process is driving the Commission and the Council to focus merely on the partnership dimension of the EU’s relations with Türkiye, as is also reflected in the joint communication on the state of play of EU-Türkiye relations of 29 November 2023, and of 22 March 2021; highlights the increasing shift towards a different framework for the relationship, which might come at the expense of the accession process;

    The core of the accession process: democracy, the rule of law and fundamental rights

    7.  Considers that, in terms of human rights and the rule of law, Parliament’s recent resolutions on the matter remain valid in light of the continued dire human rights situation and democratic backsliding in Türkiye over the last year; fully endorses the latest resolutions of the Parliamentary Assembly of the Council of Europe and the related report by its Monitoring Committee, as well as the resolutions adopted by the Committee of Ministers of the Council of Europe, which depict in detail the wide range of serious shortfalls in human rights constantly reported by locally and internationally renowned human rights organisations;

    8.  Notes the Turkish Government’s stated commitment to judicial reform and the introduction of measures of an organisational nature; highlights, however, the need to introduce structural measures ensuring judicial independence; deeply regrets that, despite a reform strategy with nine judicial reform packages, the state of independence of the judiciary in Türkiye remains desolate following systematic government interference in and political instrumentalisation of the judicial system; deplores, in this regard, the weakening of remaining constitutional review mechanisms, particularly individual applications, and the frequent violations of due process;

    9.  Is dismayed by the persecution of legal professionals, including most recently the lawsuit filed by the Istanbul Chief Public Prosecutor’s Office that resulted in the removal of the leadership of the Istanbul Bar Association on charges of ‘making propaganda for a terrorist organization’ and ‘publicly disseminating misleading information’ for having asked for an investigation into the murders of two Kurdish journalists in Syria, and in the imprisonment of one of the members of the Istanbul Bar Association’s executive board following his trip to Strasbourg to hold meetings with Council of Europe institutions;

    10.  Is alarmed by the blatant lack of implementation of decisions by the Constitutional Court, including in the case of MP Can Atalay, which has turned into a serious judicial crisis, with the Court of Cassation filing a criminal complaint against nine judges of the Constitutional Court; is worried by the recent decision of the Court of Cassation to overturn the sentences of and release the terrorists involved in the ISIS attack at Istanbul’s Atatürk Airport, which claimed 45 lives in 2016;

    11.  Calls on Türkiye to strengthen its commitment to democratic governance, especially through reforms that ensure an independent judiciary; takes notes of the recent announcement of the Fourth Judicial Reform Strategy, spanning 2025-2029; calls on the Turkish Government to move from the superficial changes made so far through the recurrent reform packages and action plans to a profound and long overdue reform that will address, through real political will, the serious and structural shortcomings of Türkiye’s judiciary; stresses that putting an end to political interference in the judiciary requires no strategy or reform package but merely the political will to do so;

    12.  Remains deeply concerned by the continued deterioration of democratic standards and relentless crackdown by the Turkish authorities on any critical voices by means of a growing battery of repressive laws, the regular misuse of counterterrorism laws, including their application in relation to minors (as in the ‘Kız Çocukları Davası’ trial), the disproportionate use of the crime of insulting a public official, the extensive use of secret witnesses and dormant cases in flawed judicial proceedings, and the recurrent practice of exaggerated night arrests and home raids to portray targeted persons as extremely dangerous;

    13.  Welcomes the withdrawal in November 2024 of the draft amendment to Türkiye’s espionage laws, known as the ‘agent of influence’ law; urges the Turkish authorities to refrain from reintroducing a similar overly broad and vague law in the future, given the serious risk that it would be used as a tool to further criminalise the legitimate activities of civil society organisations within the country; calls on the Turkish authorities to ensure that the recently approved cybersecurity bill will serve its legitimate purpose of protecting data privacy and national security without giving way to potential infringements of fundamental rights or becoming another tool for further repression; stresses that the judicial apparatus remains heavily restrictive, with a complex web of legislation serving as a tool to systematically control and silence any critical voice, such as the 2020 social media law, the 2021 anti-money laundering law and the 2022 disinformation law;

    14.  Is concerned by the recent approval of legal provisions granting extraordinary powers to the State Supervisory Council (DDK) and the Savings Deposit Insurance Fund (TMSF), including the possibility for the former to dismiss public officials of all types and levels and appoint trustees, which could be used in an arbitrary manner;

    15.  Urges the Turkish authorities to put an end to the current serious restrictions on fundamental freedoms, in particular of expression, of assembly and of association, and to the constant attacks on the fundamental rights of members of the opposition, human rights defenders, lawyers, trade unionists, members of minorities, journalists, academics, artists and civil society activists, among others; strongly condemns the recent waves of mass arrest and imprisonment on politically motivated charges, and on the grounds of suspected terror links, affecting political figures, academics and journalists, including the arrests of Elif Akgül, independent journalist, Yıldız Tar, editor in chief of LGBT+ news site Kaos GL, Ender İmrek, columnist of Evrensel daily, and Joakim Medin, Swedish journalist for ETC, all well known for their work on human rights issues;

    16.  Strongly condemns the recent arrest and detention of the Swedish journalist Joakim Medin; reiterates that freedom of the press is a fundamental right and core EU value; strongly condemns the accusations made against Joakim Medin, which are solely based on his journalistic work and therefore demands his immediate and unconditional release and that of other journalists imprisoned for exercising their freedom of speech;

    17.  Deplores the continued prosecution, censorship and harassment of journalists and independent media, denying them the freedom to carry out their professional duties and inform the public, which is essential to a functioning democratic society; calls on the Turkish authorities to refrain from further attacks on independent media and to uphold fundamental rights and civil liberties such as freedom of speech and of the press; remains deeply concerned by the existing legislation that prevents an open and free internet, with lengthy prison sentences imposed for social media posts, scores of access blocks and content removal orders, and by the continued use of the Radio and Television Supreme Council (RTÜK) to crack down on media criticism and even on outlets deemed to spread ‘pessimism’ instead of positive news;

    18.  Acknowledges the positive developments in relation to the partial lifting by the minister of the interior of restrictions on the weekly vigils of the Saturday Mothers, Cumartesi Anneleri, in Istanbul’s Galatasaray Square, and the recent acquittal of all 46 people prosecuted for more than 6 years in the case surrounding the organisation’s 700th gathering in August 2018; calls for the complete removal of all restrictions on their peaceful protest, in full compliance with the relevant Constitutional Court ruling, and for an end to the ongoing judicial case against several of its members and sympathisers; is concerned by the ongoing trial against prominent human rights defender Nimet Tanrıkulu, who was released on 4 March 2025 after spending 94 days in pre-trial detention; urges the Turkish authorities to ensure the immediate release of all individuals detained for exercising their fundamental freedoms;

    19.  Continues to be appalled by the Turkish authorities’, in particular the Turkish judiciary’s, continuous disregard for and failure to apply landmark ECtHR rulings; reiterates its condemnation of Türkiye’s blatant misuse of the judicial system and the refusal to release from detention human rights defender Osman Kavala and opposition politicians Selahattin Demirtaş and Figen Yüksekdağ,for which Türkiye is facing historical infringement proceedings in the Council of Europe, with long-awaited consequences yet to be determined; is appalled by the recent filing and acceptance of a new indictment against Selahattin Demirtaş in which the Diyarbakır Chief Public Prosecutor’s Office asks for up to 15 years of imprisonment and a ban on his political activities on the basis of several speeches he made in 2016; calls on Türkiye to fully comply with the ECtHR judgements related to missing persons and properties (inter alia in the Fokas case) in Cyprus; deplores the politically motivated nature of these prosecutions, which form part of a broader pattern of judicial harassment; calls on Türkiye to fully implement all judgments of the ECtHR in line with Article 46 of the ECHR and in line with the unconditional obligations derived from Article 90 of the Turkish constitution; calls on the European Commission and Member States to use all diplomatic channels to urge Türkiye to implement relevant ECtHR rulings and consider implementing relevant funding conditionality in relation to compliance with ECtHR rulings;

    20.  Calls on Türkiye to respect the European Court of Human Rights decision of 24 January 2008, which found Türkiye guilty of breaching Article 2 of the European Convention on Human Rights, due to its failure to locate and prosecute those responsible in the case of the murders of Tassos Isaak and Solomos Solomou, which were committed in Cyprus in 1996; calls on the Turkish authorities to enforce the international arrest warrants against the murder suspects, and hand them over to the Republic of Cyprus;

    21.  Expresses its deep concern about the dire situation in Turkish prisons owing to severe overcrowding and poor living conditions, with reports, including by the Council of Europe, of torture and ill-treatment being widespread, and access to basic needs such as hygiene and information being severely limited; is particularly worried by the conditions of imprisonment of elderly and seriously ill prisoners, such as the case of Soydan Akay, who is being unjustly kept imprisoned; calls for his immediate release on humanitarian and health grounds; is concerned by the continued use of humiliating strip searches in prisons and other places of detention and by the persisting harassment of MP Ömer Faruk Gergerlioğlu, who is currently facing six proceedings for the removal of his parliamentary seat and immunity, among other reasons for his having denounced this very practice;

    22.  Strongly condemns the Turkish Government’s decision to dismiss, following the March 2024 local elections, the democratically elected mayors of at least 13 municipalities and districts (Hakkari, Mardin, Batman, Halfeti, Tunceli, Bahçesaray, Akdeniz, Siirt, Van and Kağızman, won by the DEM Party; and Esenyurt Ovacık and Şişli, won by CHP Party) and to replace them with government trustees appointed by the interior ministry; regards this long-standing practice of appointing trustees as a blatant attack on the most basic principles of local democracy; urges the Turkish authorities to immediately cease and reverse repression of political opposition and to respect the rights of voters to elect their chosen representatives in line with the recommendations of the Congress of Local and Regional Authorities of the Council of Europe and the Venice Commission; reiterates its call on the VP/HR to consider restrictive measures under the EU Global Human Rights Sanctions Regime against Turkish officials assuming the role of trustee and those appointing them; denounces the severe repression of protests against the removal of elected mayors, including the arbitrary arrest of hundreds of protesters, some of whom were minors; regards the decision of the Turkish Government to return to this practice after the last local elections of March 2024 as a clear sign of its lack of commitment to addressing the democratic shortcomings within the country and in clear contradiction to the declared willingness to revitalise the accession process, as such actions undermine the prospects for a stronger, more comprehensive partnership with the EU and are detrimental to long-term progress towards closer cooperation;

    23.  Deplores the permanent targeting of political parties and members of the opposition, who continue to suffer increasing pressure; condemns in the strongest terms the recent arrest and removal from office of the Istanbul Metropolitan Municipality CHP Mayor Ekrem İmamoğlu, along with the mayors of Şişli and Beylikdüzü, in the framework of two separate investigations on alleged corruption and terrorist-related charges involving a total of 106 suspects; highlights that these last cases, which are part of a long list of 42 administrative and 51 judicial investigations since İmamoğlu’s election in 2019, were launched just a few days before the internal party election to nominate him presidential candidate and the day after the controverted decision by Istanbul University to revoke his diploma, a requisite for his eligibility to be President; is appalled by the decision to temporarily ban all demonstrations in Istanbul and other provinces across the country, and the slowdown on social media; condemns the Turkish authorities’ harsh crackdown on the peaceful mass protests, including the detention of nearly 2000 people, many of them students, and the prosecution of hundreds of them through hasty mass trials with a lack of any evidence of criminal wrongdoing; expresses its deep concern over the unlawful arrest of Esila Ayık, a Ghent-based photography student detained on 8 April 2025 during protests in Istanbul, particularly owing to her untreated heart and kidney conditions; calls for the immediate release of all those still in detention and the acquittal of all those prosecuted for exercising their fundamental rights; deplores the arrests, detentions and deportations of local and international journalists covering the protests, in violation of the freedom of the press; urges the Turkish authorities to promptly and effectively investigate all allegations of harassment and excessive use of force against protesters and to uphold the freedom of assembly and protest; considers that the attacks against İmamoğlu constitute a politically motivated move aimed at preventing a legitimate challenger from standing in the upcoming elections and that with these actions the current Turkish authorities are further pushing the country towards a fully authoritarian model; regrets the EU’s lack of a strong, unified response to these alarming developments;

    24.  Further expresses its concern about the recent separate cases against Istanbul’s Beşiktaş district CHP Mayor Rıza Akpolat, Istanbul’s Beykoz district CHP Mayor Alaattin Köseler, CHP Youth Branch Chair Cem Aydın, and Zafer Party Chair Ümit Özdag; is appalled by the brutal and relentless crackdown on any kind of criticism to which all sectors of Turkish society have recently been subjected by the Turkish authorities, as illustrated, among others, by the case of Ayşe Barım, a well-known talent manager imprisoned since 27 January 2025 for alleged involvement in the Gezi Park protest 12 years ago, the investigation launched against Orhan Turan and Ömer Aras, the president and an executive of TÜSIAD, the country’s main business group, and the indictment, with the aim of imposing hefty prison sentences, of Halk TV Editor-in-Chief Suat Toktaş and journalists Seda Selek, Barış Pehlivan, Serhan Asker and Kürşad Oğuz, who have been provisionally acquitted; is concerned by the involvement in these and other cases of recently appointed Istanbul Chief Public Prosecutor Akın Gürlek, who has a long record of involvement, in different positions, in high-profile cases against political figures, and which may give grounds for considering the application of restrictive measures under the EU Human Rights sanction regime; is also concerned by the growing financial pressure on opposition municipalities and controversial announcements, such as that made in relation to day-care centres run by opposition municipalities;

    25.  Expresses its deep concern at the deterioration in women’s rights, at gender-based violence and at the increase in the incidence of femicide in Türkiye in 2024, which has been the highest since 2010, the year before the signing of the Istanbul Convention; reiterates its strong condemnation of Türkiye’s withdrawal, by presidential decree, from this international agreement and reiterates its call to reverse this decision; urges the Turkish authorities to improve the legislative framework and its implementation, including by fully applying Protection Law no. 6284, in order to effectively tackle all forms of violence against women and the practice of so-called ‘honour killings’, end the persistent policy of impunity by holding abusers to account, and advance towards gender equality, particularly with regard to the participation of women in decision-making and policymaking processes; warns against further encroachments on women’s rights, as exemplified by Türkiye’s recent ban on elective caesarean sections at private medical centres without medical justification, which constitutes an unacceptable infringement on women’s bodily autonomy;

    26.  Strongly condemns the ongoing violations and lack of protection of the fundamental rights of LGBTI+ persons in Türkiye, including the increased incidence of hate speech, hate crimes and discriminatory rhetoric, as well as continued media stereotyping based on sexual orientation and gender identity; deplores the fact that this continued discrimination is often sanctioned by the authorities, as evidenced by the mass arrests made during the Pride March in 2023 and the banning of the march in 2024, while anti-LGBTI+ marches were permitted; urges the Turkish authorities to stop banning activities against homophobia, including Pride marches, with immediate effect;

    27.  Welcomes the increased dialogue with Christian minorities, but stresses that no significant progress has been registered with regard to the protection of the rights of ethnic and religious minorities, in particular as regards their legal personality, including those of the Greek Orthodox population of the islands of Gökçeada (Imvros) and Bozcaada (Tenedos); calls for Türkiye to implement the Venice Commission recommendations and all relevant ECtHR rulings in this regard; notes with concern that representatives of different confessions, including non-Muslim and Alevi communities, continue to face bureaucratic obstacles when attempting to register places of worship; highlights that this is a violation of the right to freedom of religion and belief; calls on Türkiye to adopt the long-awaited regulation on the election of board members in non-Muslim minority foundations controlling community hospitals; reiterates its call on Türkiye to respect the role of the Ecumenical Patriarchate for Orthodox Christians all over the world and to recognise its legal personality and the public use of the ecclesiastical title of Ecumenical Patriarch; calls on Türkiye to fully respect and protect the outstanding universal value of Hagia Sophia and the Chora museum, which are inscribed on UNESCO’s World Heritage List; notes with concern that Türkiye has still not implemented two decisions of the UNESCO World Heritage Committee of 2021 and 2023 regarding its obligations to undertake special measures to protect these monuments; deplores the lack of protection of Panagia Soumela Monastery, which has been put forward for inclusion in the UNESCO World Heritage Monuments list; stresses the need to eliminate restrictions on the training, appointment and succession of clergy; welcomes the envisaged reopening of the Halki Seminary and calls for the lifting of all obstacles to its proper functioning; calls on the Turkish authorities to effectively investigate and prosecute people responsible for any hate crimes, including hate speech, committed against minorities; condemns the antisemitic statements made in the media and by high-level officials following the Hamas terrorist attacks against Israel on 7 October 2023; notes that all of these practices against any religious minority are incompatible with EU values;

    28.  Welcomes Abdullah Öcalan’s recent call on the PKK to lay down arms and dissolve, and to engage in a peace process, as a historic and long-awaited step that could help end a period of 40 years of violence that has caused more than 40 000 deaths; praises the efforts made by all stakeholders involved to facilitate these developments, including the constructive approach of different political leaders that was started by MHP leader Devlet Bahçeli, the visits to Imrali prison granted to a delegation of the DEM Party, and the broad consultations that this party has led with other political parties; underlines that this represents a significant opportunity and must be followed by an inclusive political process, with a prominent role for the Turkish Parliament, aimed at the peaceful and sustainable resolution of the Kurdish issue in its political, social, democratic and security-related aspects; stresses the need to uphold human rights, political pluralism, and civil rights for all citizens, including Kurds; regrets the continued political repression, judicial harassment and restrictions on cultural and linguistic rights faced by Kurdish citizens, which undermine democratic principles and social cohesion;

    Regional cooperation and good neighbourly relations

    29.  Continues to commend Türkiye for hosting around 3,1 million refugees, including 2,9 million Syrians under temporary protection in 2024, down from 3,2 million in 2023; reiterates the importance of Türkiye’s collaboration for the effective and orderly management of migration flows; further welcomes the fact that since 2011 the EU has contributed close to EUR 10 billion to assist Türkiye in hosting refugees; notes that some EU funding has been allocated to strengthening Turkish border control and containment capabilities; welcomes the EU’s decision to allocate an additional EUR 1 billion in December 2024 to further support the healthcare, education, and integration of refugees in Türkiye since the fall of the Assad regime; at the same time, notes that these funds had already been pledged in May 2024, and therefore do not constitute new funds; calls on the Commission to ensure utmost transparency and accuracy in the allocation of funds and that EU-funded projects, particularly those related to removal centres and border control, comply with all relevant human rights standards; is alarmed by credible reports uncovering grave human rights violations at EU-funded removal centres in Türkiye and calls on the Commission to launch a transparent and independent review into the matter; notes with concern that a continuing increase in asylum applications has been registered in the Republic of Cyprus over recent years; recalls Türkiye’s obligation to take all necessary measures to halt the existing illegal migration routes and prevent the creation of new sea or land routes for illegal migration from Türkiye to the EU, particularly to Greece and the Republic of Cyprus; points out the risks related to any possible instrumentalisation of migrants by the Turkish Government; underlines the need to ensure the protection of all refugees’ and migrants’ rights and freedoms; calls on Türkiye to ensure the full and non-discriminatory implementation of the EU-Turkey Statement of 2016 and the EU-Türkiye Readmission Agreement vis-à-vis all Member States, including the Republic of Cyprus; expresses cautious hope that developments in Syria will gradually allow an increasing number of refugees to return home; reiterates that returns should only be carried out on a voluntary basis and under conditions of safety and dignity; condemns repeated violent attacks against refugees and migrants fuelled by xenophobic rhetoric among politicians and host communities; calls on the European Commission and the EU Member States to increase their efforts to preserve humanitarian and protection space for Syrian refugees in Türkiye and to uphold the principle of non-refoulement as a cornerstone of EU policies;

    30.  Reiterates its strong interest in stability and security in the Eastern Mediterranean; welcomes the continued de-escalation and positive momentum in the region and the recent climate of re-engagement between Türkiye and Greece, albeit that unresolved issues continue to affect bilateral relations; deplores the fact that Türkiye continues to violate the sovereignty and sovereign rights of EU Member States, such as Greece and the Republic of Cyprus, including through the promotion of the Blue Homeland doctrine; underlines that, although Turkish violations of Greek airspace have drastically decreased, violations of Greek territorial waters have risen compared to 2023, and systematic illegal fishing activities have been conducted by Turkish vessels within Greek territorial waters; expresses its deep concern that Türkiye continues to uphold a formal threat of war against Greece (casus belli), should the latter exercise its lawful right to extend its territorial waters up to 12 nautical miles into the Aegean Sea, in accordance with Article 3 of the United Nations Convention on the Law of the Sea; calls on Türkiye to fully respect the sovereignty of all EU Member States over their territorial sea and airspace, and their other sovereign rights, including the right to explore and exploit natural resources in accordance with EU and international law, including the United Nations Convention on the Law of the Sea (UNCLOS), which is part of the EU acquis; reiterates its view that the memorandum of understanding between Türkiye and Libya on delimitation of the maritime jurisdiction areas in the Mediterranean infringes upon the sovereign rights of third States, does not comply with the Law of the Sea and cannot produce any legal consequences for third States;

    31.  Regrets the fact that the Cyprus problem remains unresolved, and calls for serious reengagement and the political will of all parties involved to bring about peaceful UN-led negotiations, with a view to achieving real progress in the Cyprus settlement talks; welcomes the resumption of informal talks under the auspices of the UN Secretary-General on 18 and 19 March 2025, which were held in a constructive atmosphere in which both sides showed a clear commitment to making progress and continuing dialogue; welcomes the agreement between both sides on opening four crossing points, demining, establishing a youth affairs committee and launching environmental and solar energy projects, as part of a new set of confidence-building measures; encourages all sides to use this momentum to move towards the resumption of negotiations;

    32.  Strongly reaffirms its view that the only solution to the Cyprus problem is a fair, comprehensive, viable and democratic settlement, including of its external aspects, within the agreed UN framework, on the basis of a bi-communal, bi-zonal federation with a single international legal personality, single sovereignty, single citizenship and political equality, as set out in the relevant UN Security Council resolutions, the agreed areas of convergence and the Framework of the UN Secretary General, as well as in accordance with international law and the principles and values on which the Union is founded; strongly condemns Türkiye’s attempts to upgrade the secessionist entity’s status in occupied Cyprus, including via the Organisation of Turkic States, and calls on all states to respect Cyprus’ sovereignty according to UNSC resolutions; calls, as a matter of urgency, for the resumption of negotiations on the reunification of Cyprus under the auspices of the UN Secretary-General as soon as possible, from the point at which they were interrupted in Crans-Montana in 2017; calls on Türkiye to abandon the unacceptable proposal for a two-state solution in Cyprus and to return to the agreed basis for a solution and the UN framework; further calls on Türkiye to withdraw its troops from Cyprus and refrain from any unilateral action which would entrench the permanent division of the island and from action altering the demographic balance;

    33.  Calls on Türkiye to respect the status of the buffer zone and the mandate of the UN Peacekeeping Force in Cyprus (UNFICYP); reiterates its call for cooperation among the Republic of Cyprus, Türkiye, the United Kingdom and the UN to implement concrete measures for a demilitarisation of the buffer zone, and to improve security on the island; urges Türkiye and the Turkish Cypriot leadership to reverse all unilateral actions and violations within and in the vicinity of the buffer zone and refrain from any further such actions and provocations; condemns the ongoing ‘opening’ of Varosha by Türkiye, as this negatively alters the situation on the ground, undermines mutual trust and negatively impacts the prospects for the resumption of direct talks on the comprehensive solution of the Cyprus problem; calls on Türkiye to reverse its illegal actions in violation of UN Security Council resolutions 550(1984) and 789(1992) on Varosha, which call on Türkiye to transfer the area of Varosha to its lawful inhabitants under the temporary administration of the UN, and to withdraw from Strovilia and facilitate the full implementation of the Pyla Understanding;

    34.  Reiterates its deep concern regarding all unilateral actions which aim at entrenching on the ground the permanent division of Cyprus as opposed to its reunification; condemns, in this context, the recent illegal visit of President Erdoğan to the occupied areas of the Republic of Cyprus, as well as his provocative statements, which jeopardise the efforts of the UN, the EU, the international community at large and other parties involved for the resumption of substantial negotiations in the agreed framework; regrets that such unilateral actions are tantamount to a direct illegitimate intervention against the interests of the Greek and Turkish Cypriot communities;

    35.  Reiterates its call on Türkiye to give the Turkish Cypriot community the necessary space to act in accordance with its role as a legitimate community of the island, which is a right guaranteed by the constitution of the Republic of Cyprus; reiterates its call on the Commission to step up its efforts to engage with the Turkish Cypriot community, with a view to facilitating the resolution of the Cyprus problem and recalling that its place is in the European Union; calls for all parties involved to demonstrate a more courageous approach to bringing the communities together; stresses the need for the EU body of law to be implemented across the entire island following a comprehensive resolution of the Cyprus problem;

    36.  Takes note of the significant work of the Committee on Missing Persons in Cyprus (CMP) and calls for improved access to occupied military zones by the Turkish army, access to its military archives and information as to the relocation of remains from former to subsequent burial sites; remains deeply concerned about the education and religious restrictions and impediments faced by the enclaved Greek Cypriots; calls on Türkiye to step up its cooperation with the Council of Europe and its relevant bodies and institutions, to address their key recommendations, to fully implement the European Convention of Human Rights with regard to respecting the freedom of religion and the freedom of opinion and expression, and the right to access and enjoy cultural heritage, and to stop the deliberate destruction of cultural and religious heritage; condemns the repeated attempts by Türkiye to intimidate and silence Turkish Cypriot journalists, trade unionists, human rights defenders and progressive citizens in the Turkish Cypriot community, thus violating their right to freedom of opinion and expression; calls on Türkiye to halt its proclaimed aggressive policy of the sale and exploitation of Greek Cypriot properties, a policy designed to create irreversible effects on the ground and which completely disregards the European Code of Human Rights ruling on this issue;

    37.  Regrets Türkiye’s continuing refusal to comply with aviation law and establish a channel of communication between air traffic control centres in Türkiye and the Republic of Cyprus, the absence of which entails real safety risks and dangers as identified by the European Union Aviation Safety Agency and the International Federation of Air Line Pilots’ Associations; regrets, too, its denial of access to vessels under the flag of one Member State to the Straits of Bosporus and the Dardanelles; takes the view that these could be areas where Türkiye can prove its commitment to confidence building measures and calls on Türkiye to collaborate by fully implementing EU aviation law; regrets that Türkiye has continued its attempts to impede the implementation of the Great Sea Interconnector, an EU project of common interest, and has persisted in its plans for an illegal electricity interconnector with the occupied area of Cyprus;

    38.  Regrets that for 20 years Türkiye has refused to implement the obligations assumed towards the EU, including those in relation to Cyprus, as per the Negotiating Framework of October 2005; stresses that recognition of all Member States is a necessary component of the accession process; reiterates its call on Türkiye to fulfil its obligation of full, non-discriminatory implementation of the Additional Protocol to the Ankara Agreement in relation to all Member States, including the Republic of Cyprus; further calls on Türkiye to ensure that the human and political rights of all Cypriots are fully respected and that compliance with the fundamental principles of the European Union and the European acquis is guaranteed;

    39.  Affirms its support for a free, secure and stable future for Syria and its citizens and highlights the need for an inclusive and peaceful political transition process that is Syrian-led and Syrian- owned, including the protection and inclusion of religious and ethnic communities; expresses its commitment to constructive cooperation between the EU and Türkiye to that end, on humanitarian aid, promoting a sustainable political solution in Syria, and the fight against DAESH, given that Türkiye has a key role in promoting stability in the region; recalls that Syria’s sovereignty must be restored; acknowledges the importance of rebuilding Syria’s economy as a pillar of long-term stability and prosperity for the region; calls on Türkiye to respect Syria’s territorial integrity and sovereignty and immediately cease all attacks and incursions on and occupation of Syrian territory in full compliance with international law; condemns the attacks carried out in recent weeks, taking advantage of the collapse of the Assad regime, by Turkish-backed militias against Syrian Kurdish forces in the north of Syria; expresses deep concern, as these attacks increase the number of internally displaced persons but also threaten the efficiency and continuity of the fight against Daesh; notes that its ongoing presence risks further destabilising and undermining efforts towards a sustainable political resolution in Syria; further notes that, citing security concerns, Türkiye also illegally occupies areas in Iraq; reiterates that civilian populations should never be the victim of military self-defence; calls for the necessary investigation into the cases in which there have been civilian casualties and to stop the crackdown on journalists working in the area; calls on Türkiye to support the process of implementing the agreement between the Syrian transitional government and the Kurdish-led SDF and refrain from any interference in Syria’s internal processes;

    40.  Supports the normalisation of relations between Armenia and Türkiye in the interests of reconciliation, good neighbourly relations, regional stability and security and socio-economic development, and welcomes the progress achieved so far; welcomes the continued efforts to restore links between the two countries; urges Türkiye to ensure the speedy implementation of agreements reached by the Turkish and Armenian Governments’ special representatives, such as the opening of the airspace and the border between the two countries for the third country nationals, and, subsequently, for holders of diplomatic passports; welcomes the temporary opening of the Margara-Alican border crossing between Armenia and Türkiye to facilitate the delivery of humanitarian aid to Syria; expresses the hope that these developments may give impetus to the normalisation of relations in the South Caucasus region, also in terms of security and socio-economic development, and stresses the EU’s interest in supporting this process; encourages Türkiye to play a constructive role in promoting regional stability by facilitating the swift conclusion of the peace process between Armenia and Azerbaijan, inter alia by exerting its influence on Azerbaijan and by deterring Azerbaijan from any further military action against Armenian sovereignty; encourages Türkiye once again to acknowledge the Armenian genocide in order to pave the way for genuine reconciliation between the Turkish and Armenian peoples and to fully respect its obligations to protect Armenian cultural heritage;

    41.  Notes that Türkiye’s stance in relation to Russia’s war of aggression against Ukraine continues to affect EU-Türkiye relations, as Türkiye attempts to maintain ties with both the West and Russia simultaneously; notes Türkiye’s diplomatic attempts to mediate between Russia and Ukraine, particularly regarding the Black Sea Grain Initiative, as well as its continued support for the territorial integrity and sovereignty of Ukraine, including its vote in favour of UN General Assembly resolutions condemning the Russian aggression against Ukraine; regrets that, on the other hand, trade between Türkiye and Russia has risen sharply since the start of the war in Ukraine, making Türkiye Russia’s second largest trading partner despite EU sanctions against Russia, and that Türkiye is the only NATO member state not having imposed any sanctions on Russia; further notes that the European Union’s anti-fraud office, OLAF, has initiated an investigation into a loophole that enables countries like Türkiye to rebrand sanctioned Russian oil and export it to the EU; welcomes, however, positive steps such as Türkiye’s blocking of exports to Russia for certain dual use goods, as well as products originating in the United States and the United Kingdom that are of benefit to Russian military action; reiterates its call on the Turkish Government to halt its plans for the Akkuyu Nuclear Power Plant, which will be built, operated and owned by Russia’s state atomic energy corporation, Rosatom; expresses concern at Türkiye’s ongoing discussions with Russia to establish a gas-trading hub in Istanbul, scheduled to begin operations in 2025;

    42.  Welcomes Türkiye’s participation in various crisis management missions and operations (within the framework of the common security and defence policy); regrets, however, the further deterioration in the level of alignment on common foreign and security policy positions, including on sanctions and countering the circumvention of sanctions, which has fallen to a historically low rate of 5 %, the lowest rate for any accession country; recalls that EU candidate countries are required to progressively align with the common foreign and security policy of the European Union and comply with international law; regrets that Türkiye has not undertaken any steps in this regard, notably by failing to align with EU sanctions against Russia, and that in many areas of mutual interest the foreign policies of the EU and Türkiye are worryingly divergent; urges Türkiye to align with and fully implement the EU sanctions against Russia, including on anti-circumvention measures and to cooperate closely with the EU’s Sanctions Envoy;

    43.  Stresses the importance of reinforcing EU-Türkiye cooperation in global security matters, particularly in light of the changing geopolitical landscape and potential shifts in US foreign policy; expresses cautious hope that recent informal engagement, such as the participation of the Turkish Foreign Minister in the informal meeting of EU foreign affairs ministers in 2024, may provide an impetus towards better relations; acknowledges Türkiye’s key role as an ally in NATO and welcomes the Turkish Parliament’s decision to ratify Sweden’s NATO accession in January 2024; recalls, in this regard, that Türkiye has a key responsibility to foster stability at both regional and global levels and is expected to act in line with its NATO obligations, especially given the current geopolitical upheavals; encourages constructive engagement in a more structured and frequent political dialogue on foreign, security and defence policy to seek collaboration on convergent interests while working to reduce divergences, particularly with regard to removing persistent obstacles to the enhancement of a genuine relationship between the EU and NATO, including the acquisition from Russia of the S-400 air defence system; remains duly concerned that Türkiye continues to exclude a Member State from cooperation with NATO;

    44.  Welcomes Türkiye’s long-standing position in favour of a two-state solution for the Israeli-Palestinian conflict, its calls for a ceasefire in the Israel-Hamas war, and its ongoing efforts to supply humanitarian aid to Gaza throughout the conflict; deeply regrets, at the same time, the Turkish authorities’, including the President’s, active support for the EU-listed terror group Hamas and their stance on the attack against Israel on 7 October 2023, which the Turkish Government failed to condemn; points out that Türkiye’s open support for Hamas and its refusal to designate it a terrorist organisation is not compatible with the EU’s foreign and security policy; calls, therefore, for a revision of this position;

    45.  Notes with concern that Türkiye has asked to be a member of BRICS+ and been offered ‘partner country’ status, and is considering the same for the Shanghai Cooperation Organisation (SCO), where it holds the status of a dialogue partner; expresses serious concern over Türkiye’s increasing interest in an alternative partnership framework, which is fundamentally incompatible with the EU accession process; insists that Türkiye’s new status as a BRICS partner country must not affect Türkiye’s responsibilities within NATO; notes that Türkiye has been cultivating cooperation formats, partnerships and regional alliances beyond the EU; is concerned by Türkiye’s tendency to use this multi-vector approach to advance its interests without committing to a full-fledged cooperation with any of these alliances;

    46.  Remains concerned by the Turkish Government’s use of the Turkish diaspora as an instrument for occasional meddling in EU Member States’ domestic policies;

    Socio-economic and sustainability reforms

    47.  Welcomes Türkiye’s return to a more conventional economic and monetary policy, while maintaining robust growth and a moderate budget deficit; regrets, however, that the cost of this is yet again being borne by citizens in the form of higher interest rates; highlights that social vulnerabilities have increased, particularly among children and older people, primarily due to the absence of a comprehensive poverty reduction strategy and income inequalities; underlines the necessity for the Turkish authorities to implement comprehensive social protection measures, strengthen collective bargaining rights and ensure that economic reforms prioritise reducing inequality and creating decent work opportunities;

    48.  Regrets the fact that despite the progress observed in economic and monetary policies, other actions by the Turkish Government affecting the rule of law continue to undermine basic principles such as legal certainty, which impacts negatively on Türkiye’s potential capacity to receive investments; welcomes the removal of Türkiye from the grey list of the Financial Action Task Force (FATF) in June 2024, following significant progress in improving its anti-money laundering regime and combating the financing of terrorism;

    49.  Welcomes Türkiye’s increased investment activity in the green energy sector and calls on Türkiye to continue improving the compatibility of its energy policy with the EU acquis, exploiting Türkiye’s enormous potential in renewable energy; expresses concern about the lack of any significant progress on climate action, in particular owing to the absence of a comprehensive climate law, a domestic emissions trading system, and a long-term low-emission development strategy, which undermines its 2053 climate neutrality target; highlights the need for a robust legal framework and stricter enforcement mechanisms to safeguard environmental and natural resources; urges Türkiye to align its environmental policies with the EU acquis, including respecting natural habitats when conducting mining projects, and underlines the importance of Türkiye’s adherence to the Aarhus Convention; commends the work of environmental rights defenders in Türkiye and warns against the dire environmental impact of extensive government projects, such as the expansion of its copper mining activities in Mount Ida (Kaz Daglari);

    50.  Highlights the fact that Türkiye has taken steps to diversify energy supplies and increase its renewable energy share; notes that the country is the seventh largest LNG market and highlights its potential as a regional energy hub; takes note that Türkiye has subscribed to the global goals on energy efficiency and renewable energy capacity by 2030; calls on the Commission to take into account Türkiye’s potential as a regional energy hub in initiatives to increase the installed renewable capacity in the Mediterranean region and in the development of the New Pact for the Mediterranean, and calls for energy cooperation to be part of the common agenda;

    51.  Observes some improvements in labour market conditions and points out a number of pending critical challenges, such as informal employment, the gender gap, and income inequality; is worried about the low coverage of collective bargaining and the lack of recognition of trade union rights for certain public sector employees; believes that more efforts are needed to enhance social dialogue mechanisms and address emerging occupational safety challenges; recalls that trade union freedom and social dialogue are crucial to the development and prosperity of a pluralistic society; deplores, in this regard, the recent detentions of trade unionists including Remzi Çalişkan, vice-president of the DISK confederation, and president of Genel-Iş, who was released after a month in prison, Kemal Göksoy, President of the Mersin Branch of Genel-İş, who remains in prison, and Mehmet Türkmen, chair of the textile sector union BİRTEK SEN, who was detained on 14 February 2025;

    Wider EU-Türkiye relations

    52.  Reiterates its firm conviction that, beyond the currently frozen accession process, Türkiye is a country of strategic relevance, a key partner for the stability of the wider region and plays an important role in addressing security challenges, migration management, counterterrorism, and energy security; stresses the importance of maintaining constructive dialogue and deepening cooperation in areas of mutual strategic interest; points towards a number of policy areas for future engagement, whether it be the green transition, trade, energy, a modernised customs union and visa liberalisation, among others; recalls, however, that democratic backsliding and non-alignment with the CFSP are not conducive to significant progress being made in that regard; reaffirms that the EU is committed to pursuing the best possible relations with Türkiye, based on dialogue, respect and mutual trust, in line with international law and good neighbourly relations;

    53.  Stresses the importance of encouraging deeper partnership in all economic sectors, to the benefit of the EU and all of its Member States and Türkiye; notes in particular the importance of cooperation in the fields of energy, innovation, artificial intelligence, health, security and migration management, among others; in this regard, notes that various high-level dialogues (HLDs) were held recently, including the HLD on trade and the HLD on economy, as steps towards pragmatic forms of cooperation in areas of mutual importance; calls again for the resumption of all relevant HLDs and for the establishment of structured HLDs on sectoral cooperation, to address common challenges and explore opportunities, on the condition that such cooperation must go hand-in-hand with clear and consistent conditionality grounded in respect for democratic principles, the rule of law and fundamental rights, as previously underlined in this resolution;

    54.  Stands ready to support an upgraded customs union with a broader, mutually beneficial scope, which could encompass a wide range of areas of common interest, including digitalisation, Green Deal alignment for green energy policies, public procurement, sustainable development commitments, and due diligence, contributing to the economic security of both sides; supports accompanying this upgraded customs union with an efficient and effective dispute settlement mechanism; underlines the fact that for Parliament to give its consent at the end of the process, such a modernisation would need to be based on strong conditionality related to human rights and fundamental freedoms, respect for international law and good neighbourly relations, including Türkiye’s full implementation of the Additional Protocol on extending the Ankara Agreement to all Member States without exception and in a non-discriminatory fashion;

    55.  Notes with deep regret that no progress has been made by Türkiye towards meeting the required benchmarks for visa liberalisation; reiterates its willingness to start the visa liberalisation process as soon as the Turkish authorities fully fulfil the six clearly outstanding benchmarks in a non-discriminatory manner vis-à-vis all EU Member states while aligning with EU visa policy; regrets that Turkish citizens are facing problems with visa requests/applications to EU Member States owing to a marked increase in demand and fears of abuse of the system; recognises, however, the political commitment to improving access to visas and calls for intensified efforts on both sides to address the remaining technical and administrative barriers; calls on the EU Member States to increase the resources allocated to this matter; supports measures on visa facilitation, particularly with regard to business activities and Erasmus students; deeply regrets the constant attempts by the Turkish authorities to blame the EU for not making progress on this dossier, while not taking any necessary steps to comply with the remaining benchmarks; reminds Türkiye that the lack of tangible and cumulative progress on the pending conditions has a direct impact on business activities and Erasmus students; appreciates the invaluable contribution of Erasmus+ exchanges in providing rich cross-cultural educational opportunities; regrets, however, the poor oversight on the part of the Commission, exemplified by the Erasmus partnership with Gaziantep Islam Science and Technology University, whose leadership publicly expressed support for terrorist acts; calls on the Commission to ensure that partner universities respect the EU Charter of Fundamental Rights by conducting ex ante verifications and regular controls;

    The way forward for EU-Türkiye relations

    56.  Considers, in view of the above, that the Turkish Government has failed to take the necessary steps to address the existing fundamental democratic shortcomings within the country and therefore reiterates its view that Türkiye’s EU accession process cannot be resumed in the current circumstances, despite the democratic and pro-European aspirations of a large part of Turkish society; recalls that, as in the case of any other candidate, the accession process is contingent on full compliance with the Copenhagen criteria and on the normalisation of relations with all EU Member States;

    57.  Urges the Turkish Government and the EU institutions and Member States to continue working, beyond the currently frozen accession process, on the basis of the relevant Council and European Council conclusions and the established conditionality, towards a closer, more dynamic and strategic partnership with particular emphasis on climate action, energy security, counter-terrorism cooperation and regional stability; insists on the need to begin a process of reflection on how this new constructive and progressive framework for EU-Türkiye relations can encompass the interests of all parties involved, for example by modernising and enhancing the current Association Agreement; underlines that such a positive process must be based on and matched by tangible progress in Türkiye as regards CFSP alignment, democracy, the rule of law and respect for fundamental values;

    58.  Considers the joint communication of 29 November 2023 on the state of play of EU-Türkiye relations a good basis on which to move forward in the overall relations between the EU and Türkiye; regrets the lack of a clear political endorsement of this joint communication so far by the Council; reiterates that recognition of all EU Member States is a necessary component of any agreement between the EU and Türkiye; stresses that Türkiye’s constructive engagement, including in relation to the Cyprus problem, remains key to advancing closer cooperation between the EU and Türkiye;

    59.  Warns, nevertheless, that a further drift towards authoritarianism by the Turkish authorities, such as we have been witnessing recently, will ultimately have a severe impact on all dimensions of EU-Türkiye relations, including trade and security cooperation, as it prevents the trust and reliability needed between partners and antagonises both sides in the current geopolitical scene;

    60.  Continues to acknowledge and commend the democratic and pro-European aspirations of the majority of Turkish society (particularly among Turkish youth), whom the EU will not forsake; regards these aspirations as a major reason for keeping Türkiye’s accession process alive; calls therefore on the Commission to uphold and increase its political and financial support to the vibrant and pro-democratic civil society in Türkiye, whose efforts can contribute to generating the political will necessary for deepening EU-Türkiye relations; highlights, nevertheless, that the resumption of the accession process depends on the unwavering political will of Türkiye’s authorities and society to become a full-fledged democracy, which cannot be forced upon it by the EU;

    61.  Reiterates its call to strengthen and deepen mutual knowledge and understanding between our societies, promoting cultural growth, socio-cultural exchanges and combating all manifestations of social, religious, ethnic or cultural prejudice; encourages Türkiye and the EU to promote shared values, particularly by supporting young people; reiterates its utmost commitment to sustaining and increasing support for Türkiye’s independent civil society;

    o
    o   o

    62.  Instructs its President to forward this resolution to the President of the European Council, the Council and the Commission; asks that this resolution be translated into Turkish and forwarded to the President, Government and Parliament of the Republic of Türkiye.

    (1) OJ L 134, 7.5.2014, p. 3, ELI: http://data.europa.eu/eli/agree_internation/2014/252/oj.
    (2) OJ C, C/2024/1760, 22.3.2024, ELI: http://data.europa.eu/eli/C/2024/1760/oj.
    (3) OJ C 493, 27.12.2022, p. 2.
    (4) OJ C 425, 20.10.2021, p. 143.
    (5) OJ C, C/2024/6746, 26.11.2024, ELI: http://data.europa.eu/eli/C/2024/6746/oj.
    (6) OJ C 328, 6.9.2016, p. 2.
    (7) OJ C 465, 6.12.2022, p. 112.
    (8) OJ C, C/2025/206, 14.1.2025, ELI: http://data.europa.eu/eli/C/2025/206/oj.
    (9) Texts adopted, P10_TA(2025)0016.

    MIL OSI Europe News

  • MIL-OSI Europe: Text adopted – Discharge 2023: Joint Undertakings – P10_TA(2025)0089 – Wednesday, 7 May 2025 – Strasbourg

    Source: European Parliament

    Texts adopted
     296k  91k
    Wednesday, 7 May 2025 – Strasbourg
    Discharge 2023: Joint Undertakings

    1. European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the budget of the Clean Aviation Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Clean Aviation Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Grants the Executive Director of the Clean Aviation Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2023;

    2.  Sets out its observations in the resolution below;

    3.  Instructs its President to forward this decision and the resolution forming an integral part of it to the Executive Director of the Clean Aviation Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    2. European Parliament decision of 7 May 2025 on the closure of the accounts of the Clean Aviation Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Clean Aviation Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Approves the closure of the accounts of the Clean Aviation Joint Undertaking for the financial year 2023;

    2.  Instructs its President to forward this decision to the Executive Director of the Clean Aviation Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    3. European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the budget of the Circular Bio-based Europe Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Circular Bio-based Europe Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Grants the Executive Director of the Circular Bio-based Europe Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2023;

    2.  Sets out its observations in the resolution below;

    3.  Instructs its President to forward this decision and the resolution forming an integral part of it to the Executive Director of the Circular Bio-based Europe Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    4. European Parliament decision of 7 May 2025 on the closure of the accounts of the Circular Bio-based Europe Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Circular Bio-based Europe Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Approves the closure of the accounts of the Circular Bio-based Europe Joint Undertaking for the financial year 2023;

    2.  Instructs its President to forward this decision to the Executive Director of the Circular Bio-based Europe Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    5. European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the budget of the Clean Hydrogen Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Clean Hydrogen Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Grants the Executive Director of the Clean Hydrogen Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2023;

    2.  Sets out its observations in the resolution below;

    3.  Instructs its President to forward this decision and the resolution forming an integral part of it to the Executive Director of the Clean Hydrogen Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    6. European Parliament decision of 7 May 2025 on the closure of the accounts of the Clean Hydrogen Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Clean Hydrogen Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Approves the closure of the accounts of the Clean Hydrogen Joint Undertaking for the financial year 2023;

    2.  Instructs its President to forward this decision to the Executive Director of the Clean Hydrogen Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    7. European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the budget of the Europe’s Rail Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Europe’s Rail Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Grants the Executive Director of the Europe’s Rail Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2023;

    2.  Sets out its observations in the resolution below;

    3.  Instructs its President to forward this decision and the resolution forming an integral part of it to the Executive Director of the Europe’s Rail Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    8. European Parliament decision of 7 May 2025 on the closure of the accounts of the Europe’s Rail Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Europe’s Rail Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast)(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Approves the closure of the accounts of the Europe’s Rail Joint Undertaking for the financial year 2023;

    2.  Instructs its President to forward this decision to the Executive Director of the Europe’s Rail Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    9. European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the budget of the European High Performance Computing Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the European High Performance Computing Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast)(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/1173 of 13 July 2021 on establishing the European High Performance Computing Joint Undertaking and repealing Regulation (EU) 2018/1488(5), and in particular Article 19 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Grants the Executive Director of the European High Performance Computing Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2023;

    2.  Sets out its observations in the resolution below;

    3.  Instructs its President to forward this decision and the resolution forming an integral part of it to the Executive Director of the European High Performance Computing Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 256, 19.7.2021, p. 3, ELI: https://eur-lex.europa.eu/eli/reg/2021/1173/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    10. European Parliament decision of 7 May 2025 on the closure of the accounts of the European High Performance Computing Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the European High Performance Computing Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (recast)(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/1173 of 13 July 2021 on establishing the European High Performance Computing Joint Undertaking and repealing Regulation (EU) 2018/1488(5), and in particular Article 19 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Approves the closure of the accounts of the European High Performance Computing Joint Undertaking for the financial year 2023;

    2.  Instructs its President to forward this decision to the Executive Director of the European High Performance Computing Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 256, 19.7.2021, p. 3, ELI: https://eur-lex.europa.eu/eli/reg/2021/1173/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    11. European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the budget of the European Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the European Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 70 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 70 thereof,

    –  having regard to Council Decision No 2007/198/Euratom of 27 March 2007 establishing the European Joint Undertaking for ITER and the Development of Fusion Energy and conferring advantages upon it(5), and in particular Article 5 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Grants the Director of the European Joint Undertaking for ITER and the Development of Fusion Energy discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2023;

    2.  Sets out its observations in the resolution below;

    3.  Instructs its President to forward this decision and the resolution forming an integral part of it to the Director of the European Joint Undertaking for ITER and the Development of Fusion Energy, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 90, 30.3.2007, p. 58, ELI: http://data.europa.eu/eli/dec/2007/198/oj.
    (6) OJ L 122, 10.5.2019, p. 1, ELI: http://data.europa.eu/eli/reg_del/2019/715/oj.

    12. European Parliament decision of 7 May 2025 on the closure of the accounts of the European Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the European Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Article 106a of the Treaty establishing the European Atomic Energy Community,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 70 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 70 thereof,

    –  having regard to Council Decision No 2007/198/Euratom of 27 March 2007 establishing the European Joint Undertaking for ITER and the Development of Fusion Energy and conferring advantages upon it(5), and in particular Article 5 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/715 of 18 December 2018 on the framework financial regulation for the bodies set up under the TFEU and Euratom Treaty and referred to in Article 70 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council,(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Approves the closure of the accounts of the European Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2023;

    2.  Instructs its President to forward this decision to the Director of the European Joint Undertaking for ITER and the Development of Fusion Energy, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 90, 30.3.2007, p. 58, ELI: http://data.europa.eu/eli/dec/2007/198/oj.
    (6) OJ L 122, 10.5.2019, p. 1, ELI: http://data.europa.eu/eli/reg_del/2019/715/oj.

    13. European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the budget of the Global Health EDCTP3 Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Global Health EDCTP3 Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Grants the Executive Director of the Global Health EDCTP3 Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2023;

    2.  Sets out its observations in the resolution below;

    3.  Instructs its President to forward this decision and the resolution forming an integral part of it to the Executive Director of the Global Health EDCTP3 Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    14. European Parliament decision of 7 May 2025 on the closure of the accounts of the Global Health EDCTP3 Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Global Health EDCTP3 Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Approves the closure of the accounts of the Global Health EDCTP3 Joint Undertaking for the financial year 2023;

    2.  Instructs its President to forward this decision to the Executive Director of the Global Health EDCTP3 Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    15. European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the budget of the Innovative Health Initiative Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Innovative Health Initiative Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Grants the Executive Director of the Innovative Health Initiative Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2023;

    2.  Sets out its observations in the resolution below;

    3.  Instructs its President to forward this decision and the resolution forming an integral part of it to the Executive Director of the Innovative Health Initiative Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    16. European Parliament decision of 7 May 2025 on the closure of the accounts of the Innovative Health Initiative Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Innovative Health Initiative Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Approves the closure of the accounts of the Innovative Health Initiative Joint Undertaking for the financial year 2023;

    2.  Instructs its President to forward this decision to the Executive Director of the Innovative Health Initiative Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    17. European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the budget of the Chips Joint Undertaking (before 21.9.2023 Key Digital Technologies Joint Undertaking) for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Chips Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regarding to Council Regulation (EU) 2023/1782 of 25 July 2023 amending Regulation (EU) 2021/2085 establishing the Joint Undertakings under Horizon Europe, as regards the Chips Joint Undertaking,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Grants the Executive Director of the Chips Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2023;

    2.  Sets out its observations in the resolution below;

    3.  Instructs its President to forward this decision and the resolution forming an integral part of it to the Executive Director of the Chips Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    18. European Parliament decision of 7 May 2025 on the closure of the accounts of the Chips Joint Undertaking (before 21.9.2023 Key Digital Technologies Joint Undertaking) for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Chips Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regarding to Council Regulation (EU) 2023/1782 of 25 July 2023 amending Regulation (EU) 2021/2085 establishing the Joint Undertakings under Horizon Europe, as regards the Chips Joint Undertaking,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Approves the closure of the accounts of the Chips Joint Undertaking for the financial year 2023;

    2.  Instructs its President to forward this decision to the Executive Director of the Chips Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    19. European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the budget of the Single European Sky ATM Research 3 Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Single European Sky ATM Research 3 Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Grants the Executive Director of the Single European Sky ATM Research 3 Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2023;

    2.  Sets out its observations in the resolution below;

    3.  Instructs its President to forward this decision and the resolution forming an integral part of it to the Executive Director of the Single European Sky ATM Research 3 Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    20. European Parliament decision of 7 May 2025 on the closure of the accounts of the Single European Sky ATM Research 3 Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Single European Sky ATM Research 3 Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Approves the closure of the accounts of the Single European Sky ATM Research 3 Joint Undertaking for the financial year 2023;

    2.  Instructs its President to forward this decision to the Executive Director of the Single European Sky ATM Research 3 Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    21. European Parliament decision of 7 May 2025 on discharge in respect of the implementation of the budget of the Smart Networks and Services Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Smart Networks and Services Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Grants the Executive Director of the Smart Networks and Services Joint Undertaking discharge in respect of the implementation of the Joint Undertaking’s budget for the financial year 2023;

    2.  Sets out its observations in the resolution below;

    3.  Instructs its President to forward this decision and the resolution forming an integral part of it to the Executive Director of the Smart Networks and Services Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    22. European Parliament decision of 7 May 2025 on the closure of the accounts of the Smart Networks and Services Joint Undertaking for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to the final annual accounts of the Smart Networks and Services Joint Undertaking for the financial year 2023,

    –  having regard to the Court of Auditors’ annual report on the EU Joint Undertakings for the financial year 2023, together with the Joint Undertakings’ replies(1),

    –  having regard to the statement of assurance(2) as to the reliability of the accounts and the legality and regularity of the underlying transactions provided by the Court of Auditors for the financial year 2023, pursuant to Article 287 of the Treaty on the Functioning of the European Union,

    –  having regard to the Council’s recommendation of 17 February 2025 on discharge to be given to the Joint Undertaking in respect of the implementation of the budget for the financial year 2023 (05757/2025 – C10‑0025/2025),

    –  having regard to Article 319 of the Treaty on the Functioning of the European Union,

    –  having regard to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, (EU) No 1304/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, and Decision No 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012(3), and in particular Article 71 thereof,

    –  having regard to Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union(4), and in particular Article 71 thereof,

    –  having regard to Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(5), and in particular Article 26 thereof,

    –  having regard to Commission Delegated Regulation (EU) 2019/887 of 13 March 2019 on the model financial regulation for public-private partnership bodies referred to in Article 71 of Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council(6),

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    1.  Approves the closure of the accounts of the Smart Networks and Services Joint Undertaking for the financial year 2023;

    2.  Instructs its President to forward this decision to the Executive Director of the Smart Networks and Services Joint Undertaking, the Council, the Commission and the Court of Auditors, and to arrange for its publication in the Official Journal of the European Union (L series).

    (1) OJ C, C/2024/6841, 13.11.2024, ELI: http://data.europa.eu/eli/C/2024/6841/oj.
    (2) OJ C, C/2024/6041, 10.10.2024, ELI: http://data.europa.eu/eli/C/2024/6041/oj.
    (3) OJ L 193, 30.7.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1046/oj.
    (4) OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj.
    (5) OJ L 427, 30.11.2021, p. 17, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (6) OJ L 142, 29.5.2019, p. 16, ELI: http://data.europa.eu/eli/reg_del/2019/887/oj.

    23. European Parliament resolution of 7 May 2025 with observations forming an integral part of the decisions on discharge in respect of the implementation of the budget of the EU joint undertakings for the financial year 2023 (2024/2031(DEC))

    The European Parliament,

    –  having regard to its decision on discharge in respect of the implementation of the budget of the Clean Aviation Joint Undertaking for the financial year 2023,

    –  having regard to its decision on discharge in respect of the implementation of the budget of the Circular Bio-based Europe Joint Undertaking for the financial year 2023,

    –  having regard to its decision on discharge in respect of the implementation of the budget of the Clean Hydrogen Joint Undertaking for the financial year 2023,

    –  having regard to its decision on discharge in respect of the implementation of the budget of the Europe’s Rail Joint Undertaking for the financial year 2023,

    –  having regard to its decision on discharge in respect of the implementation of the budget of the European High Performance Computing Joint Undertaking for the financial year 2023,

    –  having regard to its decision on discharge in respect of the implementation of the budget of the European Joint Undertaking for ITER and the Development of Fusion Energy for the financial year 2023,

    –  having regard to its decision on discharge in respect of the implementation of the budget of the Global Health EDCTP3 Joint Undertaking for the financial year 2023,

    –  having regard to its decision on discharge in respect of the implementation of the budget of the Innovative Health Initiative Joint Undertaking for the financial year 2023,

    –  having regard to its decision on discharge in respect of the implementation of the budget of the Chips Joint Undertaking for the financial year 2023,

    –  having regard to its decision on discharge in respect of the implementation of the budget of the Single European Sky ATM Research 3 Joint Undertaking for the financial year 2023,

    –  having regard to its decision on discharge in respect of the implementation of the budget of the Smart Networks and Services Joint Undertaking for the financial year 2023,

    –  having regard to Rule 102 of and Annex V to its Rules of Procedure,

    –  having regard to the opinion of the Committee on Transport and Tourism,

    –  having regard to the report of the Committee on Budgetary Control (A10-0056/2025),

    A.  whereas the Single European Sky ATM Research 3 Joint Undertaking, the Clean Aviation Joint Undertaking, the Innovative Health Initiative Joint Undertaking, the Clean Hydrogen Joint Undertaking, the Circular Bio-based Europe Joint Undertaking, the Europe’s Rail Joint Undertaking, the Smart Networks and Services Joint Undertaking and the Global Health EDCTP3 Joint Undertaking were set up by Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014(1), the latter being referred to as the Single Basic Act (SBA);

    B.  whereas the Key Digital Technologies Joint Undertaking was set up by Council Regulation (EU) 2021/2085 of 19 November 2021 establishing the Joint Undertakings under Horizon Europe and repealing Regulations (EC) No 219/2007, (EU) No 557/2014, (EU) No 558/2014, (EU) No 559/2014, (EU) No 560/2014, (EU) No 561/2014 and (EU) No 642/2014; whereas the Key Digital Technologies Joint Undertaking was transformed into the Chips Joint Undertaking in July 2023 pursuant to Council Regulation (EU) 2023/1782 of 25 July 2023 amending Regulation (EU) 2021/2085 establishing the Joint Undertakings under Horizon Europe, as regards the Chips Joint Undertaking(2);

    C.  whereas the European Joint Undertaking for ITER and the Development of Fusion Energy was established in April 2007 by the Council Decision of 27 March 2007 establishing the European Joint Undertaking for ITER and the Development of Fusion Energy and conferring advantages upon it (2007/198/Euratom)(3);

    D.  whereas the European High-Performance Computing Joint Undertaking was set up by Council Regulation (EU) 2021/1173 of 13 July 2021 on establishing the European High Performance Computing Joint Undertaking and repealing Regulation (EU) 2018/1488(4);

    E.  whereas the Single European Sky ATM Research 3 Joint Undertaking is a public-private partnership for the development of modernised air traffic management (ATM) in Europe and for the acceleration through research and innovation of the delivery of the Digital European Sky;

    F.  whereas the Clean Aviation Joint Undertaking is a public-private partnership focusing on research and innovation in order to transform aviation towards a sustainable and climate neutral future;

    G.  whereas the Innovative Health Initiative Joint Undertaking is a public-private partnership focusing on interdisciplinary, sustainable, and patient-centric health research and innovation;

    H.  whereas the Clean Hydrogen Joint Undertaking is a public-private partnership in the field of hydrogen and fuel cells technology research and innovation;

    I.  whereas the Chips Joint Undertaking is a public-private partnership focusing on research and innovation in key digital technologies essential for Europe’s competitive leadership in digital economy, in particular in the electronic components and systems sector;

    J.  whereas the Circular Bio-based Europe Joint Undertaking is a public-private partnership focusing on research and innovation for a sustainable and competitive circular bio-based industries sector;

    K.  whereas the Europe’s Rail Joint Undertaking is a public-private partnership for research and innovation in the railway sector;

    L.  whereas the European High-Performance Computing Joint Undertaking is a public-private partnership enabling the pooling of resources for the development and deployment of high-performance computing in Europe;

    M.  whereas the Smart Networks and Services Joint Undertaking is a public-private partnership focusing on strengthening Europe’s technological leadership and its strategic alignment with the telecommunications industry and fostering the uptake of digital solutions;

    N.  whereas the Global Health EDCTP3 Joint Undertaking is a public-private partnership focusing on reducing the socioeconomic burden of infectious diseases in sub-Saharan Africa thanks to new and improved health technological applications as well as improving the preparedness and response to infectious diseases for global purposes;

    O.  whereas the aim of the European Joint Undertaking for ITER and the Development of Fusion Energy is to provide the Union’s contribution to the ITER international fusion energy project, to implement the broader approach agreement between Euratom and Japan, and to prepare for the construction of a demonstration fusion reactor and related facilities;

    General

    1.  Notes that the role of the joint undertakings should be to support research and innovation activities in the areas of transport, energy, health, circular bio-based industries, key electronic components, supercomputing, and network systems; calls on the joint undertakings to promote the transformation of scientific knowledge into marketable innovations, and to establish mechanisms to ensure that their activity leads to an increase in European competitiveness in the world;

    2.  Underlines that under the current multiannual financial framework, according to the Court of Auditors (the ‘Court’), joint undertakings are expected to receive a combined budget of EUR 17 billion from the Union cash contribution and to leverage EUR 21,1 billion of contributions from other members;

    3.  Notes that the nature of joint undertakings is based on public-private partnerships that steer investment and leverage public and private funds to fund common goals; reminds, in that regard, that the contributions of private members must meet established targets in order for such partnerships to remain mutually beneficial; calls on joint undertakings which allow in-kind contributions to additional activities (IKAA) to avoid, where possible, an excessive reliance on such contributions in order to meet established targets;

    4.  Acknowledges the significant contributions of the joint undertakings in advancing research, innovation, and technology development across various sectors, including aviation, rail, and air traffic management, as integral to achieving the Union’s strategic objectives of sustainability, digital transformation, and competitiveness.

    5.  Welcomes the annual report of the Court on the European Union’s joint undertakings for the financial year 2023 (the ‘Court’s report’); underlines that the mission of the Court is crucial for the sound implementation of the Union budget and for oversight of the budget;

    6.  Welcomes the fact that the Court provided the discharge authority with an annual report on EU Joint Undertakings which contains a specific statement of assurance for each of the joint undertakings as regards their annual accounts and underlying transactions; shares the view that in addition to the legal provisions binding the Court, the institutional framework of joint undertakings renders these worthy of specific attention from the Court; calls for the continuation of this good practice; welcomes the good cooperation of joint undertakings with the Court during the drafting of the Court’s report and welcomes the explanations provided on some of the observations and emphases of matter made in the replies provided by the joint undertakings;

    7.  Welcomes the fact that two joint undertakings attained financial autonomy during the financial year 2023, namely the Smart Networks and Services Joint Undertaking on 24 October 2023 and the Global Health EDCTP3 Joint Undertaking on 23 November 2023; notes furthermore that as a result, the Court audited these two joint undertakings for the first time, in addition to the nine joint undertakings the Court had already audited for the financial year 2022;

    8.  Stresses its awareness that some joint undertakings were affected significantly during the financial year 2023 by important events with an impact likely to alter their performance; emphasises, more precisely, that:

       (a) Russia’s war of aggression against Ukraine has had a significant impact on the Union economy and on supply chains, affecting greatly the activities of some joint undertakings;
       (b) the aftermath of the COVID-19 pandemic is still felt throughout Europe today and during the financial year 2023, still constituted a massive shock to economic and administrative activities;
       (c) the high levels of inflation caused by the two aforementioned events had an impact on the supplies and delivery time for the joint undertakings;

    9.  Acknowledges the benefits of joint undertakings, the importance of public-private cooperation in fostering innovation, promoting research and development and the economic benefits of the partnerships; notes that by pooling resources and expertise from both sectors, public and private, joint undertakings can face the challenges more effectively; underlines the importance of transparency, accountability and efficient use of public funds by joint undertakings;

    10.  Recognises the value of initiatives fostering stakeholder engagement and participation, such as open calls for expressions of interest and joint calls across the joint undertakings, as instrumental in leveraging the collective expertise and resources; draws particular attention to the joint call for proposals launched by Europe’s Rail Joint Undertaking and the Single European Sky ATM Research 3 Joint Undertaking – the first joint call of its kind from joint undertakings aimed at developing an integrated air and rail network for a sustainable multimodal transport system;

    11.  Recalls that joint undertakings must conduct their operations according to sound financial management, thereby contributing effectively to Union policy objectives as well as to the sound implementation of the Union budget; nevertheless is concerned with a series of elements, in light of the findings of the Court, as presented in this resolution;

    Annual accounts

    12.  Notes that the Court’s report finds that the 2023 annual accounts of the eleven joint undertakings audited present fairly, in all material respects, their financial position as of 31 December 2023, the results of their operations and cash flows, and changes in net assets for the year ended, in accordance with their financial regulations and the accounting rules adopted by the Commission’s accounting officer; notes furthermore that as a result, the Court issued unqualified audit opinions on the reliability of the annual accounts of the joint undertakings;

    13.  Notes that the Court’s report finds that the underlying transactions to the annual accounts are legal and regular in all material respects; notes furthermore that as a result, the Court issued unqualified audit opinions on the legality and regularity of both the revenue and the payments underlying the accounts of the joint undertakings;

    14.  Takes note of the fact that, in the view of the Court, insufficient guidance was provided to the Smart Networks and Services Joint Undertaking and the Global Health EDCTP3 Joint Undertaking on their first-time annual accounts, especially as regards the need for clarity in distinguishing the financial resources managed by the Commission before they attained their financial autonomy and by the joint undertakings after they attained it; echoes the Court’s recommendation for action in this regard which recommends that accounting guidelines should be developed in a clear and comprehensible way which should specify the rules for the presentation of the first annual accounts of new joint undertakings and that these guidelines should include instructions on how to separate the financial resources implemented by the Commission from those implemented by a joint undertaking after it attained its financial autonomy; notes that the risk to the reliability of annual accounts was deemed to be low for all joint undertakings except for the Smart Networks and Services Joint Undertaking and the Global Health EDCTP3 Joint Undertaking, for which the risk to reliability was deemed to be medium, due to the complexities brought about by the transfer of budget appropriations and assets from the responsibility of the Commission to the responsibility of the joint undertaking;

    15.  Takes note of the fact that the annual accounts of the European Joint Undertaking for ITER and the Development of Fusion Energy are produced on the basis of the baseline of the ITER project in place in 2023 but that the latter is the subject of an ongoing revision, the result of which is likely to result in significant changes for the European Joint Undertaking for ITER and the Development of Fusion Energy and its estimated total cost at completion; underlines that the joint undertaking concerned should take all actions necessary to ensure that the future baseline and its consequences for the need for Union cash contributions to the joint undertaking do not constitute a liability for the Union budget; notes from the hearing of the joint undertaking concerned in the Committee on Budgetary Control that at the time of the hearing and according to the joint undertaking concerned, it was too early to provide an estimate of the financial impact of this revision; is furthermore concerned by the delays impacting the ITER project, due to factors beyond the joint undertaking’s control;

    16.  Is concerned by the potential impact that the reorganisation of the European Joint Undertaking for ITER and the Development of Fusion Energy will have on its activities, notably the short to medium-term instabilities and operational risks for the joint undertaking; welcomes the awareness of the joint undertaking concerned of these issues and the explanation provided on its views on the situation; welcomes the additional information provided during the hearing of the joint undertaking concerned in the Committee on Budgetary Control, notably as regards the fact that the risk for business continuity has so far been mitigated thanks to a strong reliance on existing programmes and projects; welcomes the flexibility brought along by the new matrix structure;

    17.  Takes note of the fact that the risk to the legality and regularity of revenue was deemed to be low for all joint undertakings;

    Budgetary and financial management

    18.  Notes that the total available budget in 2023 for the eleven joint undertakings audited by the Court amounted to EUR 4,25 billion in commitment appropriations and EUR 3,87 billion in payment appropriations, according to the Court, which considers that the total available budget includes unused appropriations from previous years, which the joint undertakings entered again in the budget of the current year and assigned revenues and reallocations to the next year; notes more precisely that:

       (a) the total available budget in 2023 for the Single European Sky ATM Research 3 Joint Undertaking amounted to EUR 111,2 million in commitment appropriations (compared to EUR 158,8 million in 2022) and EUR 241,5 million in payment appropriations (compared to EUR 146,9 million in 2022); understands furthermore that according to the report on budgetary and financial management of the Single European Sky ATM Research 3 Joint Undertaking, its total budget execution rate for the financial year 2023 reached 92 % for commitment appropriations and 81 % for payment appropriations, indicating that there were no severe issues related to the pace of implementation of the budget; nevertheless stresses the low execution rate of its payment appropriations dedicated to infrastructure and operating expenditure, which reached 55 %; notes the explanation of the joint undertaking and generally calls on the joint undertaking to ensure a healthy pace of implementation for each section of its budget;
       (b) The total available budget in 2023 for the Clean Aviation Joint Undertaking amounted to EUR 269 million in commitment appropriations (compared to EUR 411,2 million in 2022) and EUR 486,4 million in payment appropriations (compared to EUR 415,3 million in 2022); understands furthermore that according to the report on budgetary and financial management of the Clean Aviation Joint Undertaking, its total budget execution rate for the financial year 2023 reached 98,58 % for commitment appropriations and 51,18 % for payment appropriations, indicating that there were serious issues related to the pace of implementation of the budget; notes in particular that the execution rates of its two operational expenditure titles stand at 80,50 % and 81,11 % respectively for payment appropriations; furthermore stresses the low execution rate of its payment appropriations dedicated to infrastructure expenditure, which reached 60,52 %; deeply regrets the important amount allocated to title 5 of its budget for unused payment appropriations of EUR 177 million, which has a technical execution rate of 0 %; notes the explanation of the joint undertaking and generally calls on the joint undertaking to ensure a healthy pace of implementation for each section of its budget;
       (c) The total available budget in 2023 for the Innovative Health Initiative Joint Undertaking amounted to EUR 223,2 million in commitment appropriations (compared to EUR 272,4 million in 2022) and EUR 225,9 million in payment appropriations (compared to EUR 174,8 million in 2022); understands furthermore that according to the report on budgetary and financial management of the Innovative Health Initiative Joint Undertaking, its total budget execution rate for the financial year 2023 reached 92,65 % for commitment appropriations and 90,29 % for payment appropriations, indicating that there were no severe issues related to the pace of implementation of the budget; nevertheless stresses the low execution rates of its commitment and payment appropriations dedicated to infrastructure expenditure, which reached 68,67 % and 67,30 % respectively; notes the explanation of the joint undertaking and generally calls on the joint undertaking to ensure a healthy pace of implementation for each section of its budget;
       (d) The total available budget in 2023 for the Clean Hydrogen Joint Undertaking amounted to EUR 268,9 million in commitment appropriations (compared to EUR 314,3 million in 2022) and EUR 327,8 million in payment appropriations (compared to EUR 118,3 million in 2022); understands furthermore that according to the report on budgetary and financial management of the Clean Hydrogen Joint Undertaking, its total budget execution rate for the financial year 2023 reached 96,62 % for commitment appropriations and 85,43 % for payment appropriations, indicating that there were no severe issues related to the pace of implementation of the budget; nevertheless stresses the low execution rate of payment appropriations dedicated to its operational expenditure financed under Horizon 2020 which reached 69,41 %; moreover stresses the low execution rate of its commitment and payment appropriations dedicated to infrastructure expenditure, which reached 71,21 % and 60,60 % respectively; notes the explanations of the joint undertaking and generally calls on the joint undertaking to ensure a healthy pace of implementation for each section of its budget;
       (e) The total available budget in 2023 for the Chips Joint Undertaking amounted to EUR 835,7 million in commitment appropriations (compared to EUR 261,4 million in 2022) and EUR 518,4 million in payment appropriations (compared to EUR 222,2 million in 2022); understands furthermore that according to the report on budgetary and financial management of the Chips Joint Undertaking, its total budget execution rate for the financial year 2023 reached 100 % for commitment appropriations and 37 % for payment appropriations, indicating that there were serious issues related to the pace of implementation of the budget; in particular, stresses the extremely low execution rate of payment appropriations dedicated to operational expenditure, which reached 36 %; notes the explanation of the joint undertaking but deeply regrets such a low execution rate and generally calls on the joint undertaking to ensure a healthy pace of implementation for each section of its budget; takes note of the fact that these elements, in relation to the increased funding that the Chips Joint Undertaking benefited from in 2023 and which the Chips Joint Undertaking had to implement, led the Court to consider the risk to budget management to be medium for this joint undertaking;
       (f) The total available budget in 2023 for the Circular Bio-based Europe Joint Undertaking amounted to EUR 227,4 million in commitment appropriations (compared to EUR 264,2 million in 2022) and EUR 137,4 million in payment appropriations (compared to EUR 80,3 million in 2022); understands furthermore that according to the report on budgetary and financial management of the Circular Bio-based Europe Joint Undertaking, its total budget execution rate for the financial year 2023 reached 97,6 % for commitment appropriations and 90,3 % for payment appropriations, indicating that there were no severe issues related to the pace of implementation of the budget; nevertheless stresses the low execution rates of commitment and payment appropriations for the part of its administrative expenditure dedicated to salaries, which reached 64 % and 57 % respectively, as well as the low execution rate of payment appropriations for the part of its administrative expenditure dedicated to other administrative expenditure, which reached 54 %; notes the explanation of the joint undertaking and generally calls on the joint undertaking to ensure a healthy pace of implementation for each section of its budget;
       (g) The total available budget in 2023 for the Europe’s Rail Joint Undertaking amounted to EUR 102,6 million in commitment appropriations (compared to EUR 171,4 million in 2022) and EUR 120,3 million in payment appropriations (compared to EUR 180,8 million in 2022); understands furthermore that according to the report on budgetary and financial management of the Europe’s Rail Joint Undertaking, its total budget execution rate for the financial year 2023 reached 97 % for commitment appropriations and 82 % for payment appropriations, indicating that there were no severe issues related to the pace of implementation of the budget; nevertheless stresses the low execution rate of payment appropriations for the part of its operational expenditure financed under Horizon 2020, which reached 67 %; notes the explanation of the joint undertaking and generally calls on the joint undertaking to ensure a healthy pace of implementation for each section of its budget; points out that Europe’s Rail Joint Undertaking postponed final payments to 2024 due to technical issues experienced by beneficiaries; takes notice of the several projects that did not fully claim their budgets, reducing the need for operational payments by approximately EUR 4,1 million; calls on the joint undertaking concerned to elaborate a plan on how to improve the accounting reporting obligations; highlights the importance of supporting the joint undertaking given rail’s inherent advantages in terms of environmental performance, land use, energy consumption, and safety;
       (h) The total available budget in 2023 for the European High-Performance Computing Joint Undertaking amounted to EUR 1136 million in commitment appropriations (compared to EUR 1374,5 million in 2022) and EUR 1058 million in payment appropriations (compared to EUR 629,9 million in 2022); understands furthermore that according to the report on budgetary and financial management of the European High-Performance Computing Joint Undertaking, its total budget execution rate for the financial year 2023 reached 83% for commitment appropriations and 19 % for payment appropriations, indicating that there were serious issues related to the pace of implementation of the budget; in particular, stresses the extremely low execution rate of payment appropriations dedicated to operational expenditure, which reached 19 %; notes the explanation of the joint undertaking but deeply regrets such a low execution rate; moreover stresses the low execution rate of its commitment and payment appropriations dedicated to administrative expenditure, which reached 45 % and 42 % respectively; notes the explanation of the joint undertaking and generally calls on the joint undertaking to ensure a healthy pace of implementation for each section of its budget; takes note of the fact that these elements, in relation to the increased funding that the European High-Performance Computing Joint Undertaking benefited from in 2023 and which the European High-Performance Computing Joint Undertaking had to implement, led the Court to consider the risk to budget management to be medium for this joint undertaking; welcomes the additional information provided during the hearing of the joint undertaking concerned in the Committee on Budgetary Control on the reasons behind this slow execution rate;
       (i) The total available budget in 2023 for the Smart Networks and Services Joint Undertaking amounted to EUR 134,7 million in commitment appropriations and EUR 122,9 million in payment appropriations; understands furthermore that according to the report on budgetary and financial management of the Smart Networks and Services Joint Undertaking, its total budget execution rate for the financial year 2023 reached 99 % for commitment appropriations and 89 % for payment appropriations; deems that given the short period of time during which the joint undertaking had attained financial autonomy in the financial year 2023, there are no sufficient grounds on which the European Parliament could express its view on the quality of the financial management of the joint undertaking while doing so in good faith; nevertheless notes that due to this situation, the risk to the legality and regularity of administrative expenditure was deemed as medium for the joint undertaking;
       (j) The total available budget in 2023 for the Global Health EDCTP3 Joint Undertaking amounted to EUR 136,4 million in commitment appropriations and EUR 2,2 million in payment appropriations; understands furthermore that according to the report on budgetary and financial management of the Global Health EDCTP3 Joint Undertaking, its total budget execution rate for the financial year 2023 reached 100 % for commitment appropriations and 47 % for payment appropriations; deems that given the short period of time during which the joint undertaking had attained financial autonomy in the financial year 2023, there are no sufficient grounds on which the European Parliament could express its view on the quality of the financial management of the joint undertaking while doing so in good faith; nevertheless notes that due to this situation, the risk to the legality and regularity of administrative expenditure was deemed as medium for the joint undertaking;
       (k) The total available budget in 2023 for the European Joint Undertaking for ITER and the Development of Fusion Energy amounted to EUR 807 million in commitment appropriations (compared to EUR 981,2 million in 2022) and EUR 631,5 million in payment appropriations (compared to EUR 844 million in 2022); understands furthermore that according to the report on budgetary and financial management of the European Joint Undertaking for ITER and the Development of Fusion Energy, its total budget execution rate for the financial year 2023 reached 73 % for commitment appropriations and 95 % for payment appropriations, indicating that there were serious issues related to the pace of implementation of the budget; in particular, stresses the low execution rate of commitment appropriations dedicated to operational expenditure, which reached 70 %; notes the explanation of the joint undertaking and takes note of the resulting transfers made back to the initially planned Euratom and ITER Host State contributions and generally calls on the joint undertaking to ensure a healthy pace of implementation for each section of its budget; takes note of the fact that these elements, which are related to delays and implementation difficulties, led the Court to consider the risk to budget management to be medium for this joint undertaking;

    19.  Echoes the Court’s concerns as regards unused appropriations in the implementation of programmes of certain joint undertakings and calls on the joint undertakings concerned to avoid the reoccurrence of similar situations, as the accumulation of unused appropriations leads to cash surpluses, which are therefore not available to the Union for the financing of other activities and programmes; underlines that this is not in line with the principle of sound financial management and has resulted in a total of EUR 1,5 billion of cash surplus for the financial year 2023; echoes the Court’s recommendation for action in this regard which recommends that the joint undertakings concerned should develop corrective mechanisms to reduce their cash surpluses to a reasonable level and subsequently align their cash requests for each financial year with their estimated spending needs, in coordination with the Commission; is aware of possibilities under the financial rules of the joint undertakings concerned for unused appropriations to be entered in the estimate of revenue and expenditure of up to the three financial years following their reception; is nevertheless concerned more precisely with:

       (a) the shortcomings in the cash planning of the Clean Aviation Joint Undertaking, following the request for additional Union financial contributions of EUR 178 million in excess of cash needs for planned payment in 2023, resulting in a cash surplus of EUR 237 million at the end of 2023; takes note however of the explanation of the joint undertaking; nevertheless repeats its call for the Clean Aviation Joint Undertaking to avoid the reoccurrence of similar situations and welcomes the adjustments announced by the joint undertaking for 2024;
       (b) the shortcomings in the cash planning of the Chips Joint Undertaking, following the request for additional EU financial contributions of EUR 196 million in excess of cash needs for planned payment in 2023, resulting in a cash surplus of EUR 438 million at the end of 2023; takes note however of the explanation of the joint undertaking; nevertheless repeats its call for the Chips Joint Undertaking to avoid the reoccurrence of similar situations and welcomes the ambition announced by the joint undertaking for 2024;
       (c) the shortcomings in the cash planning of the European High-Performance Computing Joint Undertaking, following the request for additional Union financial contributions of EUR 488,6 million in excess of cash needs for planned payment in 2023, resulting in a cash surplus of EUR 840,7 million at the end of 2023; understands the situation faced by the joint undertaking which led to this surplus and welcomes the additional information provided during the hearing of the joint undertaking concerned in the Committee on Budgetary Control, notably as regards the expectations for projects related to Artificial Intelligence to provide an opportunity for an important cash-out; nevertheless repeats its call for the European High-Performance Computing Joint Undertaking to avoid the reoccurrence of similar situations;

    20.  Stresses that all joint undertakings shall strengthen internal financial controls and public transparency mechanisms, ensuring that funds are distributed efficiently and in a manner consistent with EU strategic objectives;

    21.  Echoes the Court’s concerns as regards the contribution of members to certain joint undertakings, in particular as regards the possibility that some joint undertakings could not meet their contribution targets or only do so through high reliance on in-kind contributions to additional activities and calls on the joint undertakings concerned to take all actions necessary to prevent these situations from arising in the future; underlines that meeting contribution targets is the responsibility and obligation of the concerned joint undertakings and that failing to meet contribution targets goes against the founding idea of joint undertakings; is concerned, more precisely, with:

       (a) the situation of the Single European Sky ATM Research 3 Joint Undertaking, whose operational contribution target of its member Eurocontrol only reached a level of 70 %, which resulted in the joint undertaking not having the planned contributions at its disposal to fully implement its part of Horizon 2020; takes notes of the fact that this element did not however lead the Court to consider the risk to programme implementation to be medium or high for this joint undertaking, as it was deemed to be low;
       (b) the situation of the Circular Bio-based Europe Joint Undertaking, which performed well in reaching its contribution target under Horizon 2020, however notably did so through a revision of the balance between the targets for in-kind contributions to operational activities and for in-kind contributions to additional activities, the latter being raised to EUR 2 444,5 million, which corresponds to 90 % of the overall target; underlines that such a reliance on in-kind contributions to additional activities presents a risk to the implementation of the Horizon 2020 programme; underlines the substantial impact of the revision performed by the joint undertaking; takes notes of the explanation of the joint undertaking and of the fact that additional activities contribute to the overall objectives of the joint undertaking; nevertheless stresses that this constitutes an excessive reliance on in-kind contribution to additional activities to meet established targets and calls on the joint undertaking to avoid the reoccurrence of such a situation; takes note of the fact that these elements led the Court to consider the risk to programme implementation to be high for this joint undertaking;
       (c) the situation of the European High-Performance Computing Joint Undertaking, whose contribution from private members under Horizon 2020 only reached a reported amount of EUR 18,4 million against a target of EUR 420 million, which constitutes a severe difference; notes furthermore that such a situation might occur again under Horizon Europe and Digital Europe as the contribution target for private members has increased significantly to EUR 900 million while the financing arrangements that caused difficulties for private members under Horizon 2020 remain in place; takes note of the fact that these elements led the Court to consider the risk to programme implementation to be high for this joint undertaking; understands from the additional information provided during the hearing of the joint undertaking concerned in the Committee on Budgetary Control that this issue is being dealt with in cooperation with the Governing Board; nevertheless echoes the Court’s recommendation for action in this regard which recommends that the European High-Performance Computing Joint Undertaking should support the Commission’s reassessment of the current target in order to ensure that it can attain its contribution target for private members under Horizon Europe and Digital Europe and stresses once again that reaching contribution targets should not simply be considered as an ambition but as a duty;

    22.  Underlines that to promote better efficiency, the Single Basic Act of the joint undertakings provides for an obligation for joint undertakings to achieve synergies via the establishment of back-office arrangements operating in a series of identified areas; understands that four areas have been identified as a priority by the joint undertakings concerned, namely accounting activities, legal activities, information and communication technologies and human resources; particularly welcomes in that regard:

       (a) the fact that the back-office arrangements dedicated to accounting activities have been operational since December 2022 and were therefore in operation for the entirety of financial year 2023, which could be observed in the production of the annual accounts as well as the fact that the Europe’s Rail Joint Undertaking took the lead in operating these back-office arrangements;
       (b) the fact that the Circular Bio-based Europe Joint Undertaking and the Innovative Health Initiative Joint Undertaking took the lead in operating back-office arrangements for the management of common recruitment, the legal framework of human resources and the digitalisation of human resources;
       (c) the fact that the Clean Hydrogen Joint Undertaking and the Innovative Health Initiative Joint Undertaking took the lead in operating back-office arrangements for the management of Information and Communication Technologies services;
       (d) the fact that the Clean Aviation Joint Undertaking, the Europe’s Rail Joint Undertaking and the European High-Performance Computing Joint Undertaking took the lead in operating back-office arrangements for the management of administrative procurements;
       (e) the fact that joint undertakings are further implementing the joint strategic ICT plan of the joint undertakings located in the White Atrium building;

    23.  Calls on the joint undertakings concerned by the obligation under the Single Basic Act to keep reporting on their establishment of back-office arrangements, to provide clear information on which joint undertakings operate tasks for other joint undertakings in certain areas, to include as soon as possible communication, logistics, events and meeting room management as well as the support for audit and anti-fraud strategies on the list of priorities and to provide information on the areas to be considered for the establishment of back-office arrangements in the future, once arrangements in the areas identified as a priority have been concluded;

    Procurement and tenders

    24.  Echoes the Court’s concerns as regards procurement procedures and calls on joint undertakings to ensure that the compliance with relevant legal provisions and the necessary complexity of certain procurement procedures do not lead to an increased risk to the legality and regularity of operational expenditure; is concerned, more precisely, by:

       (a) the situations of the Innovative Health Initiative Joint Undertaking and of the Chips Joint Undertaking, for both of which the Court observed weaknesses in the design and evaluation of one significant procurement procedure; takes notes of the fact that this element did not however lead the Court to consider the risk to operational control expenditure to be medium or high for this joint undertaking; nevertheless stresses the fact that such weaknesses may result in irregular contracts and payments if not addressed in future procurement procedures; welcomes the readiness of the joint undertakings to take action on these specific cases and to improve their procurement processes;
       (b) the fact that the Court has evaluated the risk to operational contract expenditure to be medium for the European High-Performance Computing Joint Undertaking and the European Joint Undertaking for ITER and the Development of Fusion Energy because of their complex procurement procedures for high-value contracts;

    25.  Underlines the financial exposure of the European High-Performance Computing Joint Undertaking to a supplier facing difficulties which is evaluated by the joint undertaking as ranging from a potential low impact of EUR 0 to an estimated maximum impact of EUR 88 million; understands from the annual accounts of the joint undertaking that this situation is being carefully scrutinised; calls on the joint undertaking to take all actions necessary to minimise financial liabilities; welcomes the additional information provided during the hearing of the joint undertaking concerned in the Committee on Budgetary Control, especially as regards the additional guarantees requested by the joint undertaking concerned to minimise this financial liability as well as the explanation provided on the key role of this specific supplier;

    26.  Takes note of the fact that the levels of detail and the level of accessibility vary when it comes to the quantitative data provided by the joint undertakings on the gender balance of experts selected to work with the joint undertakings; calls on all joint undertakings to increase transparency and to include clear quantitative data on gender balance among the experts selected in their future Annual Activity Reports; calls on all joint undertakings to intensify their efforts to promote gender equality at all levels and to ensure that gender balance remains a horizontal priority in all activities related to procurement, grants and tenders and to provide explanations when gender balance cannot be achieved;

    27.  Takes note of the fact that the levels of detail and the level of accessibility vary when it comes to the quantitative data provided by the joint undertakings on the geographical distribution of experts selected to work with the joint undertakings; calls on all joint undertakings to include clear quantitative data on the geographical distribution of the experts selected in their future Annual Activity Reports; calls on all joint undertakings to ensure that geographical distribution remains a horizontal priority in all activities related to procurement, grants and tenders and to provide explanations when sufficient geographical distribution cannot be achieved;

    28.   Calls for a fair and equitable geographical distribution of funding from the joint undertakings, ensuring that regions with lower innovation capacity and SMEs receive adequate support;

    Staff and recruitment

    29.  Is concerned with the state of play of recruitment within the European High-Performance Computing Joint Undertaking, which received 39 additional posts to be recruited by the end of the financial year 2023 in order to implement the significant funds received under the current multiannual financial framework but which only managed to recruit 21 additional staff; is furthermore concerned with the assessment of the Court which determined that the recruitment procedures of the joint undertakings were not sufficiently transparent due to a lack of clear and previously agreed upon scoring-grids to assess candidates and their qualifications as well as due to a lack of sufficient documentation on the underlying decision-making process; regrets that in the view of the Court, this situation may have resulted in a lack of equal treatment of candidates; reminds that it is paramount to avoid the application of double standards during the recruitment process and requests for all necessary actions to be taken in this regard; echoes the Court’s recommendation for action in this regard which recommends that the European High-Performance Computing Joint Undertaking should use its increased staff effectively to achieve its recruitment target by the end of 2024 and that, in order to increase the transparency of its recruitment procedures and to substantiate the decision-making processes of the selection committee, the European High-Performance Computing Joint Undertaking should use a pre-agreed scoring grid during the pre-selection phase, in line with the practice of other joint undertakings and Union bodies; welcomes the readiness of the joint undertaking to integrate recommendations for improvements;

    30.   Emphasises the need for a coherent and fair staffing policy across all Joint Undertakings to ensure adequate and inclusive working conditions, career development opportunities, and work-life balance for staff; calls for the implementation of measures to prevent excessive reliance on temporary contracts and precarious employment; underlines the importance of mental health support structures, flexible working arrangements, and fair internal promotion opportunities to improve staff well-being;

    31.  Calls on all joint undertakings to implement concrete measures to improve gender balance in leadership positions and decision-making bodies, including setting gender balance targets and regularly monitoring progress; stresses the need to address gender pay gaps and ensure equal opportunities for career advancement;

    32.  Takes note of the fact that the Court considered the risk to the legality and regularity of administrative expenditure to be low for all joint undertakings except for the Chips Joint Undertaking and the European High-Performance Computing Joint Undertaking for which it was deemed to be medium due to their high recruitment level, as well as for the Smart Networks and Services Joint Undertaking and the Global Health EDCTP3 Joint Undertaking, due to their recent financial autonomy;

    33.  Is concerned with the situation of the European Joint Undertaking for ITER and the Development of Fusion Energy as regards different aspects related to the management of human resources observed by the Court, especially as regards the use of external service providers, notably:

       (a) the important reliance of the joint undertaking on external service providers, as it was observed that near to half of the staff of the joint undertaking consisted of external service providers (361 external service providers and 429 statutory staff in 2023) which makes that situation a critical issue with a potential large-scale impact on the capacity of the joint undertaking to manage its human resources in a sustainable manner while ensuring a capacity for retention of knowledge and institutional memory, which also allow for financial gains in the long run;
       (b) the fact that the joint undertaking did not adopt a unique formal definition of external service providers, which resulted in a lack of clarity in its assessment of their impact on statutory staff needs; notes furthermore that the risk register of the joint undertaking did not include all the potential risks related to a high level of reliance on external service providers in the long term, which might prevent the internal control of the joint undertaking from having adequate mitigating measures put in place to address those risks;
       (c) the findings of the audit conducted on this matter by the Commission’s internal audit service which revealed that the joint undertaking had not set up a centralised function for the coordination and management of external service providers, nor had it set up a methodology for assessing its aggregate human resources needs, and in particular its needs for external service providers; underlines that it was observed that the joint undertaking’s decision on the use of external service providers was therefore based on budgetary concerns rather than human resources needs;
       (d) the lack of transparency in the reporting of the joint undertaking on its human resources; particularly as regards the presentation of permanent and non-permanent staff figures, given that 224 of the 386 temporary and contract staff had in reality an indefinite contract and could therefore have been considered as permanent staff from a practical point of view; calls on the joint undertaking to underline such nuances in the future in its reporting on human resources;
       (e) echoes the Court’s recommendation for action which recommends that the European Joint Undertaking for ITER and the Development of Fusion Energy should establish a centralised coordination and management function for external service providers and adopt a comprehensive methodology to regularly assess its total human resources needs based on the expected workload and required skills and that the joint undertaking concerned should also supplement its risk register with the most important risks deriving from its high level of use of external service providers in the long run;
       (f) welcomes the commitments made by the joint undertaking and welcomes its explanation of the challenges leading to an important use of external service providers; is nevertheless concerned with this important dependency and the related risks; calls on the joint undertaking to provide more detailed information in the future on the decision-making processes leading to the use of external service providers;

    34.  Takes note of the fact that the levels of detail and the level of accessibility vary when it comes to the quantitative data provided by the joint undertakings on the gender balance among their staff and within their governing bodies and structures in their Annual Activity Reports; calls on all joint undertakings to include a clear section dedicated to quantitative data on gender balance among their staff and within their governing bodies and structures in their future Annual Activity Reports, including the disaggregation of data between different levels of responsibility and different types of contract; calls on all joint undertakings to ensure that gender balance remains an objective at all levels of responsibility and to persist in their efforts to enhance it, in order to ensure a fair representation of society within their staff and to promote a healthy and productive working environment and to provide explanations when gender balance cannot be achieved;

    35.  Takes note of the fact that the levels of detail and the level of accessibility vary when it comes to the quantitative data provided by the joint undertakings on the geographical distribution within their staff and within their governing bodies and structures in their Annual Activity Reports; calls on all joint undertakings to include a clear section dedicated to quantitative data on geographical distribution among their staff and within their governing bodies and structures in their future Annual Activity Reports, including the disaggregation of data between different levels of responsibility and different types of contract; calls on all joint undertakings to ensure that a satisfactory geographical distribution remains an objective at all levels of responsibility and to provide explanations when a sufficient geographical distribution cannot be achieved;

    36.  Welcomes the work of the EU Agencies Network (EUAN) and its Working Group on Diversity and Inclusion which led to the EUAN Charter on Diversity and Inclusion; invites joint undertakings to adopt this Charter;

    37.   Underlines that joint undertakings shall ensure that funded projects contribute to social well-being and inclusivity, respect workers’ rights and labour conditions and align with the principles of a just transition to sustainable technologies;

    Management and control systems

    38.  Welcomes the work of the Court on the examination of grant payments made by the ten joint undertakings implementing research and innovation projects, especially as regards its complementary audit of a sample of grant payments at beneficiary level under Horizon 2020; is concerned with the results of this examination which showed that there were persistent systemic errors, especially as regards declared personnel and equipment costs; calls for correction of the systemic errors;

    39.  Underlines that the Court found one case of quantified and serious error in payments under Horizon 2020 for the Clean Aviation Joint Undertaking, the Innovative Health Initiative Joint Undertaking, the Clean Hydrogen Joint Undertaking, the Circular Bio-based Europe Joint Undertaking, as well as for the Europe’s Rail Joint Undertaking; welcomes the initiatives taken in this regard to raise awareness at beneficiary level; calls on all joint undertakings to ensure the legality and regularity of operational expenditure and underlines that the Court deemed the risk to the interim and final grant payments of the joint undertakings to be medium;

    40.   Calls on the Commission to implement: i) mandatory financial training for beneficiaries of the joint undertakings to prevent recurrent accounting errors; ii) automated verification tools to enhance accuracy in personnel cost calculations; iii) stronger ex-ante audit procedures to ensure proper use of Union funds;

    41.  Welcomes the fact that according to the extrapolation of the Court for all joint undertakings, the average error rate is just below the materiality threshold of 2% for grant expenditure, as well as the fact that the residual error rates calculated by the Commission’s common audit service were also below the materiality threshold;

    42.  Takes note of the fact that the number of Horizon Europe and Digital Europe interim payments was too small to feature in the sample audited by the Court in 2023;

    43.  Takes note of the fact that there were several changes to the internal control framework of joint undertakings under Horizon Europe, notably the fact that the Commission no longer intends to make specific representative ex-post audits on behalf of individual Horizon Europe stakeholders, such as joint undertakings; notes furthermore that the Commission plans to apply the same change to grant payments under Digital Europe;

    44.  Is concerned with the lack of communication, collaboration and coordination between the risk management of the European Joint Undertaking for ITER and the Development of Fusion Energy and its internal audit functions, as well as with the related lack of an integrated risk management process and the fact that the joint undertaking could not provide satisfactory evidence that it regularly uses risk management information when planning internal audit activities; echoes the Court’s recommendation for action in this regard which recommends that the joint undertaking concerned implement an integrated risk management process in its internal control framework in order to manage its risks effectively; welcomes the plans of the joint undertaking to take action on this issue;

    45.  Underlines the importance of implementing a comprehensive and up to date business continuity plan and disaster recovery plan for the joint undertakings; regrets in that regard that at the end of the financial year 2023, the joint undertakings, with the exception of the European Joint Undertaking for ITER and the Development of Fusion Energy, did not have a satisfactory policy in place in this regard; welcomes the plans of the joint undertaking to take action on this issue;

    46.  Points out that the Smart Networks and Services Joint Undertaking and the Global Health EDCTP3 Joint Undertaking still had not fully implemented the Commission’s internal control framework and calls on these two joint undertakings to fully implement that framework;

    Fraud, ethics and conflicts of interests

    47.  Takes note of the fact that the Court made one notification of suspected fraud to the European Anti-Fraud Office (OLAF) during its audit of the financial year 2023; understands that the case was later dismissed by OLAF as no fraud was observed in relation to the staff matter concerned; welcomes the diligence of the Court and the cooperation within the anti-fraud architecture;

    48.  Underlines the importance of implementing an internal control policy on sensitive functions for the joint undertakings; stresses that such a policy can prevent and mitigate the risk of inappropriate or fraudulent action; regrets that at the end of the financial year 2023, the Single European Sky ATM Research 3 Joint Undertaking, the Clean Hydrogen Joint Undertaking, the Chips Joint Undertaking, the European High-Performance Computing Joint Undertaking as well as the European Joint Undertaking for ITER and the Development of Fusion Energy did not yet have a policy in that regard; stresses the critical nature of this situation and urges the joint undertakings to take action without unnecessary delays;

    49.  Takes note of the situation in the Chips Joint Undertaking referred to by the Court, which saw one of its former senior staff members who had left the joint undertaking recently take up a new occupational activity without prior notice to the joint undertaking concerned; calls on the joint undertaking concerned and all other joint undertakings to conduct active monitoring of the new occupational activities of former senior staff members as well as of staff members occupying a sensitive function; welcomes the additional information provided by the joint undertaking concerned on this specific case;

    50.   Calls on all joint undertakings to enhance their transparency policies, particularly regarding potential conflicts of interest; urges joint undertakings to publish declarations of interest for their members of boards of management, scientific committees, and external experts, ensuring that any financial, professional, or personal ties to entities benefiting from funding from the joint undertakings are disclosed; insists on the introduction of a mandatory ‘cooling-off’ period for senior staff of the joint undertakings before they can take up employment in organisations that receive funding from the joint undertakings;

    51.  Takes note of the information reported by the joint undertakings on their activities related to prevention, detection, and correction of fraud; calls on all joint undertakings to strengthen their role and identify their weaknesses by engaging further in anti-fraud discussions and to report on such elements and to include in their future reports a clear presentation of the legal framework and policies put in place in this regard;

    Remarks on the follow-up of joint undertakings to the previous discharge exercise

    52.  Welcomes the fact that joint undertakings have produced a follow-up report to the European Parliament resolutions with observations forming an integral part of the decisions on discharge in respect of the implementation of the budget of the joint undertakings for the financial year 2022; notes that these reports provide the views of the joint undertakings on the issues underlined by the European Parliament to a satisfactory extent;

    53.  Welcomes the fact that the Court’s report also includes an analysis of the follow-up of joint undertakings to previous observations and recommendations for actions published by the Court; notes in this regard that out of 37 observations not sufficiently addressed at the end of 2022, 16 were closed and 21 remained open at the end of 2023; furthermore notes that out of the 15 recommended actions in the annual reports of 2021 and 2022, 9 had been fully implemented, 2 in most respects, 3 in some respects and 1 not implemented at all; understands that some recommendations that still need to be implemented further mainly relate to human resources issues which the joint undertakings can only implement in cooperation with the Directorate-General for Budget of the Commission and once applications are ready to be implemented; understands that the recommendations that had to be implemented before the end of 2023 were implemented in due time;

    54.  Welcomes the fact that the Court has now provided a deadline for implementation for each of its open recommendations for action, which were defined in cooperation with the joint undertakings to ensure their feasibility; calls on all joint undertakings to continue to report back to the Court and the European Parliament on these issues;

    55.   Notes with concern the persistent challenges related to cost overruns, delays, and governance issues in the implementation of the ITER project; calls for improved financial oversight and enhanced budgetary transparency, including more detailed public reporting on cost developments, spending efficiency, and progress toward key project milestones; stresses the need for stricter auditing mechanisms to ensure that Union contributions to the project are effectively utilised; urges the joint undertaking to strengthen internal governance by ensuring regular and independent evaluations of project risks and by increasing accountability mechanisms for senior management;

    Other priorities for the joint undertakings

    56.  Is aware of the administrative and budgetary constraints of joint undertakings and in respect of these constraints, calls on joint undertakings to better disseminate their contribution to research and innovation activities through accessible communication material intended for academic and research institutions, public and private organisations and European and national authorities; calls for this accessible communication material to promote the opportunities for procurement contracts and grants offered by the joint undertakings in the area of research and innovation activities;

    57.  Calls on joint undertakings to proactively engage in communication activities in order to reach a wide range of EU citizens in a pedagogical effort to present their contribution to common goals and the need for institutionalised partnerships that involve private members;

    58.   Calls on the joint undertakings to establish the cooperation with universities in order to reach out to young European graduates to strengthen their future recruitment processes;

    59.  Calls on joint undertakings to continue to report effectively and to the extent of their capacity on their contribution to employment and to the competitiveness of the European economy, in light of the necessity for all important stakeholders of the European Union in the area of research and innovation to focus on the reindustrialisation of the European Union;

    60.  Calls on joint undertakings to continue to ensure a sufficient level of participation of private firms, especially of small and medium-sized enterprises, which constitute the strongest asset of the European economy;

    61.  Calls on joint undertakings to report effectively on their contribution to horizontal priorities of the budget of the European Union;

    62.  Calls on all joint undertakings to continue to act with diligence in the conduct of their activities when dealing with international stakeholders, especially in light of the regime of restrictive measures put in place by the European Union; underlines the particular situation of the European Joint Undertaking for ITER and the Development of Fusion Energy in this regard and welcomes the explanations provided during the hearing of the joint undertaking concerned in the Committee on Budgetary Control on measures put in place to prevent any issues in the framework of the ITER project;

    63.  Calls on all joint undertakings to ensure that their staff are making a good use of possible synergies with other entities from the European Union, such as agencies, in all relevant areas and in order to increase the efficiency and impact of their operations; calls on all joint undertakings to ensure that their staff are making good use of the platform that constitutes the EU Agencies Network (EUAN);

    64.   Emphasises the need for digital sovereignty in research funded by the Union; in that regard puts special emphasis on the Chips Joint Undertaking, Euro European High Performance Computing Joint Undertaking, and the Smart Networks and Services Joint Undertaking who shall prioritise projects that enhance Union autonomy in semiconductor manufacturing, artificial intelligence, and cybersecurity; asks the Commission to ensure that projects funded by joint undertakings: i) are not excessively reliant on third-country suppliers for critical technologies; ii) contribute to the Union’s industrial resilience and strategic independence; iii) foster domestic R&D in key digital sectors;

    Call for a follow-up

    65.  Calls on each joint undertaking considered for the granting of discharge for the financial year 2023 to produce an individual follow-up report on all actions taken to address the specific issues mentioned in this resolution and to submit this follow-up report signed by the (Executive) Director of the joint undertaking to the European Parliament by no later than 30 September 2025;

    66.  Underlines that follow-up reports may also contain the general views of the joint undertakings on this resolution and on other matters relevant for the discharge authority; expects the joint undertakings to draft this report with a comprehensive approach, to touch on all issues addressed by the European Parliament concerning their activities, and to do so in good faith and cooperation.

    (1) OJ L 427, 30.11.2021, p. 17–119, ELI: http://data.europa.eu/eli/reg/2021/2085/oj.
    (2) OJ L 229, 18.9.2023, p. 55–62, ELI: http://data.europa.eu/eli/reg/2023/1782/oj.
    (3) OJ L 90, 30.3.2007, p. 58–72, ELI: http://data.europa.eu/eli/dec/2007/198/oj.
    (4) OJ L 256, 19.7.2021, p. 3–51, ELI: http://data.europa.eu/eli/reg/2021/1173/oj.

    MIL OSI Europe News

  • MIL-OSI USA: CLARKE SLAMS GOP’S ATTEMPT TO SLASH MEDICAID IN ENERGY AND COMMERCE COMMITTEE

    Source: United States House of Representatives – Congresswoman Yvette D Clarke (9th District of New York)

    FOR IMMEDIATE RELEASE:

    May 13, 2025

    MEDIA CONTACT: 

    e: jessica.myers@mail.house.gov

    c: 202.913.0126

    WASHINGTON, D.C. – Congresswoman Yvette D. Clarke delivered the following remarks at the Committee on Energy and Commerce Full Committee Reconciliation Markup:

    “I would like to begin by sharing a story of one of my constituents, David. This is David — one of the many faces of Medicaid. David is a 55-year-old Brooklyn resident who has been living with congestive heart failure since 2016. Once a full-time worker, his diagnosis sadly forced him to stop working and rely solely on Medicaid for his healthcare. Medicaid covers all aspects of his medical needs — including the daily medications he has to take, regular cardiac monitoring, and hospital-based care. His condition was so severe that during his first visit to the hospital, he remained admitted for nearly a full year, that extended hospitalization was entirely covered by Medicaid — and it saved his life. He was able to receive this life-saving care at SUNY Downstate, a vital hospital in my district, that also heavily relies on Medicaid dollars to provide high-quality care to their patients — just like most healthcare institutions across the nation, from rural to urban. 

    The medical team there provided him with consistent, high-quality care in a community-based setting. Without Medicaid, David would lose access to his medications and to the physicians who have managed his condition for nearly a decade. David clearly said, ‘If Medicaid is cut, I will have no way to afford my care. No medication. No follow-up. No hospital. Without Medicaid, I will die prematurely.’ David’s story is a powerful example of how essential Medicaid is. It’s not just policy, but a lifeline for Americans in my district and across the nation.

    “Let’s be crystal clear about what’s happening here. We are being asked to sit in this room today and pretend that gutting Medicaid is somehow a ‘necessary evil’ and ‘a tough decision’ made in the name of fiscal responsibility. But it’s not. It is a political CHOICE that my colleagues on the other side of the aisle are choosing to make. It is a CHOICE that disproportionately targets low-income communities, communities of color, immigrants, and working-class families. It is a CHOICE that will impact hospital systems, especially in New York, that are still trying to recover from the devastating impacts of COVID-19. It is a CHOICE that will strip away life-saving healthcare for 17.3 million Americans — nearly 7 million, or 1 in 3, New Yorkers who rely on this program.

    “In New York’s 9th District, this amounts to over 65,000 people over the age of 65, over 24,000 disabled children and adults, over 146,000 young adults, over 85,000 parents and caretakers, over 149,000 children, and over 11,000 pregnant women. MAKE NO MISTAKE — this Medicaid cut would hit Republican or red states the hardest. For months, House Republicans have lied about their plans to cut nearly $1 trillion from Medicaid — and now the nonpartisan Congressional Budget Office has confirmed that their plan will kick millions of people off their health care. The only winners in the Republican budget scheme are their billionaire donors like Elon Musk.

    “And yet, here we are ONCE AGAIN, witnessing Republicans playing political games with people’s lives, so their billionaire friends enjoy tax breaks and their private jets. ONCE AGAIN, they are here to feed their relentless obsession to dismantle the Affordable Care Act — which we’ve fought to preserve. Somehow we always find the money for tax breaks for the wealthy… but when it comes to health care for working people, suddenly we are out of money? This is boldface cruelty. Their goal is to shift federal support to their donors’ pockets. They are punitive, they are shortsighted, and they will devastate people — like David.

    “So no, I will NOT quietly sit here so that my colleagues on the other side of the aisle can chip away at the health and dignity of the American people and call it ‘compromise.’ In one of the wealthiest and most advanced nations in the world, EVERYONE — no matter their political beliefs — deserves access to quality, affordable health care. This is not fiscal policy. This is a moral failure. And I reject this bill.

    “Cruelty is the point!”

    ###

    MIL OSI USA News

  • MIL-OSI USA: Cortez Masto, Ernst, Case, Radewagen Work to Strengthen Strategic Relationships with Pacific Islands, Counter Chinese Aggression in the Region

    US Senate News:

    Source: United States Senator for Nevada Cortez Masto
    Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Joni Ernst (R-Iowa), Congressman Ed Case (D-Hawaii-01), and Delegate Aumua Amata Radewagen (R-A.S.). introduced a bipartisan, bicameral bill aimed at strengthening the United States’ strategic partnerships with Pacific Island nations, supporting sustainable development, and combating the increasing Chinese aggression in the region. The Pacific Partnership Act would help the U.S. establish a clear, comprehensive strategy to support diplomatic, security, and economic relationships in the Indo-Pacific region.
    “Supporting our allies and partners in the Indo-Pacific is essential to combating the Chinese Communist Party’s influence and to our long-term national security,” said Senator Cortez Masto. “This bipartisan bill is critical to strengthening our ties with our allies in the Pacific and ensuring they become enduring global relationships.”
    “Strengthening America’s partnerships in the Indo-Pacific is critical to deterring Chinese aggression,” said Senator Ernst. “This bipartisan legislation equips us to work with nations in the Pacific that serve as the first line of defense against the Chinese Communist Party and keep Americans safe at home.”
    “Our Pacific Partnership Act responds directly to the reality that our country’s and world’s future lies in the Indo-Pacific, and that the islands of the Pacific are our indispensable partners in charting that future,” said Congressman Case. “The Pacific Islands are under increasingly severe economic, environmental and geopolitical stress, and we must expand our generational engagement to assist them where they most need assistance. The Pacific Partnership Act, molded directly on the Pacific Islands’ own blueprint to their collective future, is our roadmap to expanded engagement as well.”
    “Thank you to Senator Cortez Masto, Senator Ernst, and Congressman Case for their focus on these important partnerships that are close to home for my congressional district in the South Pacific,” said Congresswoman Radewagen. “We need sustained U.S. engagement for enduring partnerships in the Pacific Islands, keeping China’s influence in check, and strengthening mutual development opportunities.”
    The U.S. has a longstanding relationship with the Pacific Islands, and they play a crucial role in U.S. national security, facilitating military operations in support of American allies and partners. Nevada – through the National Guard – collaborates with the Republic of Fiji, the Kingdom of Tonga, and the Independent State of Samoa under the National Guard Bureau’s State Partnership Program, strengthening security cooperation globally. 
    The Pacific Partnership Act would strengthen these crucial ties by creating a “Strategy for Pacific Partnership”. This strategy, crafted by the President and presented to Congress every four years, would outline U.S. involvement in the Pacific Islands and highlight combined efforts to combat regional challenges including natural disasters, security threats, and economic development. 
    Read the full bill here.
    Senator Cortez Masto has led efforts in Congress to stand up to the Chinese Communist Party’s influence and protect the American national and economic security. She introduced the PASS Act to ban individuals and entities controlled by China, Russia, Iran, and North Korea from purchasing agricultural land and businesses located near U.S. military installations or sensitive sites and the Strengthening Exports Against China Act, which would incentivize economic growth by eliminating barriers for American businesses competing directly with China in emerging industries like artificial intelligence and semiconductors. She’s also introduced bipartisan legislation to strengthen the domestic supply chain for rare-earth magnets, which are critical components of cell phones, computers, defense systems, and electric vehicles, but are almost exclusively made in China.

    MIL OSI USA News

  • MIL-OSI USA: Grassley, Smith Reintroduce Bill Preventing Spread of Foreign Animal Diseases

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley
    Click HERE to download audio of Grassley discussing the legislation
    WASHINGTON – Sens. Chuck Grassley (R-Iowa) and Tina Smith (D-Minn.) reintroduced the Healthy Dog Importation Act to combat the spread of foreign animal diseases entering the United States. The legislation would expand the Department of Agriculture’s (USDA) Animal and Plant Health Inspection Services (USDA-APHIS) program by providing additional tools to monitor and safeguard the health of dogs being imported into the country. 
    “Maintaining animal health is critical to our nation’s overall public health goals. We want to stop the spread of diseases that can hurt both animals and humans. Our commonsense proposal will boost an existing program to ensure all dogs entering the United States are healthy and not at risk of spreading dangerous diseases that threaten humans and our livestock,” Grassley said. 
    “We’ve seen first-hand the risk that animal-borne diseases pose to other species and humans, so it’s important that we screen animals coming across the border to make sure we’re keeping Minnesotans and their families safe. This bipartisan legislation ensures every dog imported into the United States is screened and vaccinated. Monitoring the illnesses of imported dogs will not only protect the health of our domestic and wild animals, it will also prevent disease outbreaks in people,” Smith said. 
    In addition to expanding the USDA-APHIS program, the Healthy Dog Importation Act would require every imported dog to have a certificate of veterinary inspection from a licensed veterinarian, with some exemptions for personal pet travel and military dogs. The health certificate must attest the dog has received all required vaccinations and demonstrated negative test results. 
    The legislation also would create an online database containing documentation and import permits to ensure dogs entering the country are being properly screened. This would allow further cooperation and communication between APHIS, the Centers for Disease Control and Prevention (CDC) and U.S. Customs and Border Protection. 
    “NAIA commends Representatives Johnson and Davis and Senators Grassley and Smith for taking action to reduce the spread of foreign animal diseases and pathogens. The bipartisan Healthy Dog Importation Act ensures that imported dogs meet basic health standards before crossing our borders—an essential safeguard not only for animal welfare, but for public health, biosecurity, and the integrity of our domestic pet and livestock industries. It’s a commonsense measure that responds to the realities of an increasingly interconnected world,” President of the National Animal Interest Alliance Patti Strand said.
    “NASDA is grateful for Senators Grassley and Smith’s leadership to reintroduce this timely legislation. The ongoing avian influenza outbreak and the ever-present threat of deadly African Swine Fever show the need to better protect the U.S. from highly contagious pathogens and zoonotic diseases. This legislation is critical for NASDA members, as the state departments of agriculture regulate and oversee animal health programs in their states to protect against an animal disease outbreak and secure our food supply. The Healthy Dog Importation Act helps our partners at the U.S. Department of Agriculture Animal and Plant Health Inspection Services by providing additional tools to monitor and safeguard the health of dogs being imported into the country,” CEO of the National Association of State Departments of Agriculture Ted McKinney said.
    “Animal health is a top priority for U.S. cattle producers. This legislation will strengthen the inspection process to guard against the entry of zoonotic animal disease and protect public health and cattle health in the U.S. NCBA thanks Reps. Dusty Johnson and Don Davis and Sens. Chuck Grassley and Tina Smith for introducing this important bill,” NCBA Executive Director of Government Affairs Allison Rivera said.
    “With the number of dogs imported into the United States rising to over one million annually, the risk of introducing and spreading diseases impacting human and animal health has dramatically increased. The proposed legislation equips federal agencies with the necessary tools to ensure all dogs entering the country are healthy and not a risk to public health. We urge Congress to pass the Healthy Dog Importation Act swiftly, as it is vital to improving our dog importation standards and strengthening the country’s animal health infrastructure,” American Veterinary Medical Association (AVMA) President Dr. Sandra Faeh said. 
    Additional cosponsors include Sens. Joni Ernst (R-Iowa), Roger Marshall (R-Kan.), Cindy Hyde-Smith (R-Miss.), Jim Risch (R-Idaho), Jerry Moran (R-Kan.) and Raphael Warnock (D-Ga.).
    Full text of the legislation is available HERE.
    Click HERE to download audio of Grassley discussing the legislation
    Background:
    CDC estimates up to 1.245 million dogs are imported into the U.S. each year. For the estimated 113,000 canines imported from countries considered at a high-risk for rabies transmission, CDC requires a rabies vaccination certificate, but no other health documentation or identification. For the 950,000 dogs imported from rabies-free, low-risk or moderate risk countries, CDC requires no documentation or vaccination. 
    The COVID-19 pandemic has increased public health officials’ concerns regarding zoonotic diseases, which can be spread between animals and humans. The CDC reports 60 percent of all infectious diseases and three out of four emerging diseases can be spread from animals to humans. USDA-APHIS has separate regulatory authority over dogs imported for resale. However, USDA’s import requirements apply to only half of a percent of all imported dogs. 
    -30-

    MIL OSI USA News

  • MIL-OSI Europe: Written question – Strengthening EU action against organised crime networks’ use of AI – E-001832/2025

    Source: European Parliament

    Question for written answer  E-001832/2025
    to the Commission
    Rule 144
    Dan-Ştefan Motreanu (PPE)

    A new report by Europol warns that artificial intelligence (AI) is transforming the landscape of serious and organised crime in the EU. AI’s accessibility, versatility, and sophistication enable criminal networks to automate, scale up, and conceal illicit activities at an unprecedented rate, making law enforcement detection and prosecution significantly more difficult.

    The report highlights that AI, along with technologies like blockchain and quantum computing, acts as a catalyst, amplifying the speed, scope and complexity of organised crime. Europol further warns that the emergence of fully autonomous AI systems could give rise to AI-controlled criminal networks in the future.

    Digital infrastructure has become the primary setting for organised crime, facilitating cyberattacks, ransomware, online fraud, drug trafficking, firearms trafficking and serious environmental crimes. Europol underlines the urgent need for enhanced access to data in order for law enforcement and the creation of new legal frameworks to address these emerging threats.

    In the light of these alarming developments, what measures does the Commission intend to propose to strengthen the EU’s capacity to detect, prevent and combat the use of AI and emerging technologies by organised crime groups?

    Submitted: 6.5.2025

    Last updated: 13 May 2025

    MIL OSI Europe News

  • MIL-OSI Russia: Xi Jinping Holds Talks with Brazilian President

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian –

    Source: People’s Republic of China – State Council News

    BEIJING, May 13 (Xinhua) — Chinese President Xi Jinping held talks in Beijing on Tuesday with Brazilian President Luiz Inacio Lula da Silva, who is on a state visit to China.

    Xi Jinping recalled that last year, on the occasion of the 50th anniversary of the establishment of diplomatic relations between China and Brazil, the two sides jointly announced the upgrading of bilateral ties to a China-Brazil community of shared future for a fairer world and a more sustainable planet.

    The Chinese President called on both sides to vigorously advance the building of a China-Brazil community with a shared future, consistently strengthen the alignment of development strategies, and jointly promote solidarity and cooperation among countries in the Global South.

    Xi Jinping stressed that China and Brazil should maintain strategic mutual trust, support each other on issues related to the two sides’ core interests and major concerns, and strengthen exchanges at all levels and in all areas.

    The Chinese leader called on the two countries to expand cooperation, deepen the effective alignment of the Belt and Road Initiative with Brazil’s development strategy, make full use of various cooperation mechanisms between the two countries, strengthen cooperation in traditional areas such as infrastructure, agriculture and energy, and explore new areas of cooperation including energy transition, digital economy, artificial intelligence, aviation and space.

    China and Brazil, Xi Jinping continued, should expand cultural and people-to-people exchanges, provide more facilities for people-to-people exchanges, and step up cooperation in culture, education, tourism, media, and at the local level.

    The two sides should maintain active interaction in multilateral forums, the Chinese leader noted, adding that as the largest developing countries in the Eastern and Western hemispheres respectively, China and Brazil should strengthen coordination and cooperation in multilateral mechanisms, uphold multilateralism, improve global governance, safeguard the international trade and economic order, and firmly oppose unilateralism, protectionism and bullying.

    L. I. Lula da Silva, for his part, stated that Brazil expects to deepen strategic cooperation with China and promote the construction of a Brazilian-Chinese community with a shared destiny.

    Brazil is willing to align its development strategy with the Belt and Road Initiative and expand cooperation between the two countries in areas such as trade, infrastructure, space and finance, the president said. He also called on the two countries to expand youth and cultural exchanges and strengthen ties and friendship between the two peoples.

    As L.I. Lula da Silva pointed out, protectionism and abuse of tariffs cannot promote development and prosperity, but instead lead to chaos. He stressed that China’s resolute stance in confronting global challenges gives strength and confidence to all countries. According to him, Brazil is ready to strengthen strategic cooperation with China in international affairs, cooperate to protect the common interests of the Global South, and uphold international fairness and justice.

    At the Great Hall of the People, the heads of the two states attended the signing of 20 documents on cooperation in such areas as the alignment of development strategies, science and technology, agriculture, digital economy, finance, customs control and quarantine supervision, and the media.

    The heads of the two states also met with the press together.

    China and Brazil on Tuesday issued a joint statement on strengthening the joint construction of a China-Brazil community of shared future for a fairer world and a more sustainable planet and jointly safeguarding multilateralism, as well as a joint statement on the Ukraine crisis.

    Before the talks, Xi Jinping and his wife Peng Liyuan held a welcoming ceremony for Luiz Inacio Lula da Silva and his wife Rosangela Lula da Silva. –0–

    MIL OSI Russia News

  • MIL-OSI: Alaris Equity Partners Announces $75 Million Bought Deal Offering of 6.50% Convertible Unsecured Senior Debentures

    Source: GlobeNewswire (MIL-OSI)

    NOT FOR DISTRIBUTION IN THE UNITED STATES.
    FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW

    CALGARY, Alberta, May 13, 2025 (GLOBE NEWSWIRE) — Alaris Equity Partners Income Trust (“Alaris” or the “Trust”) (TSX: AD.UN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters (the “Underwriters”) led by National Bank Financial, CIBC Capital Markets and Desjardins Capital Markets, and including Acumen Capital Partners, Raymond James Ltd., RBC Capital Markets, Scotiabank, and Cormark Securities Inc. pursuant to which the Underwriters have agreed to purchase $75.0 million aggregate principal amount of convertible unsecured senior debentures due June 30, 2030 (the “Debentures”) at a price of $1,000 per Debenture (the “Offering”). The Trust has also granted the Underwriters an option to purchase up to an additional $11.25 million aggregate principal amount of Debentures, on the same terms and conditions, exercisable in whole or in part, up to 30 days following closing of the Offering. The Offering is expected to close on or about June 2, 2025 (the “Closing Date”). Unless otherwise stated, all numbers in this press release are presented in Canadian dollars.

    The Trust intends to use the net proceeds of the Offering to partially repay outstanding indebtedness under Alaris’ subsidiary’s senior debt facility (the “Senior Debt Facility”) which may be subsequently redrawn and used to fund future investments in new Partner (as defined below) investments or general trust purposes.

    The Debentures will bear interest at a rate of 6.50% per annum, payable semi-annually in arrears on the last business day of June and December of each year commencing on December 31, 2025. The first payment will include accrued and unpaid interest for the period from the Closing Date to, but excluding, December 31, 2025. The Debentures will mature on June 30, 2030 (the “Maturity Date”).

    The Debentures will be direct senior unsecured obligations of the Trust and will rank subordinate to all existing and future senior secured indebtedness of the Trust and any of its subsidiaries, including pursuant to the Senior Debt Facility, and pari passu with each debenture issued under the debenture indenture governing the Debentures (the “Trust Indenture”) and with all other present and future unsubordinated indebtedness of the Trust, including the Trust’s senior unsecured debentures due March 31, 2027, as further detailed in the Trust Indenture. The payment of principal and premium, if any, of, and interest on, the Debentures will be subordinated in right of payment to all senior secured indebtedness. The Trust Indenture will not restrict the Trust or its subsidiaries from incurring additional indebtedness or from mortgaging, pledging or charging its properties to secure any indebtedness or liabilities. None of the Trust’s subsidiaries will guarantee the Debentures.

    The Debentures will be convertible at the holder’s option into units of the Trust (“Units”) at any time prior to the earlier of the close of business on the business day immediately preceding: (i) the Maturity Date June 30, 2030; and (ii) and if called for redemption, the business day immediately preceding the date fixed for redemption of the Debentures at a conversion price of $24.85 per Units, being a ratio of 40.2414 per $1,000 principal amount of Debentures, subject to adjustment in certain events. The Debentures are not redeemable by Alaris before June 30, 2028. On and after June 30, 2028 and prior to June 30, 2029, the Debentures may be redeemed in whole or in part from time to time at the option of Alaris at a price equal to their principal amount plus accrued and unpaid interest, provided that the volume weighted average trading price of the Units on the Toronto Stock Exchange for the 20 consecutive trading days ending on the fifth trading day preceding the date on which the notice of the redemption is given is not less than 125% of the Conversion Price. On and after June 30, 2029, the Debentures may be redeemed in whole or in part from time to time at the option of Alaris at a price equal to their principal amount plus accrued and unpaid interest regardless of the trading price of the Units.

    A preliminary short form prospectus will be filed with securities regulatory authorities in all provinces of Canada, other than the province of Québec. The Offering is subject to customary regulatory approvals, including the approval of the Toronto Stock Exchange.

    This news release is not an offer of securities of Alaris for sale in the United States. The Debentures have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and the Debentures may not be offered or sold in the United States except pursuant to an applicable exemption from such registration. No public offering of securities is being made in the United States. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

    ABOUT ALARIS

    The Trust, through its subsidiaries, invests in a diversified group of private businesses (“Partners”) primarily through structured equity. The primary goal of our structured equity investments is to deliver stable and predictable returns to our unitholders through both cash distributions and capital appreciation. This strategy is enhanced by common equity positions, which allow us to generate returns in alignment with the founders of our Partners.

    FORWARD LOOKING STATEMENTS

    This news release contains forward-looking statements, including forward-looking statements within the meaning of “safe harbor” provisions under applicable securities laws (“forward-looking statements“). Statements other than statements of historical fact contained in this news release may be forward-looking statements including, without limitation, management’s expectations, intentions and beliefs concerning: the anticipated Closing Date; the intended use of proceeds of the Offering; the anticipated terms and timing of conversion, redemption and maturity of the Debentures; expectations regarding the filing of a preliminary prospectus and the anticipated jurisdictions for the Offering. Many of these statements can be identified by words such as “believe”, “expects”, “will”, “intends”, “projects”, “anticipates”, “estimates”, “continues” or similar words or the negative thereof. There can be no assurance that the plans, intentions or expectations on which these forward-looking statements are based will occur.

    By their nature, forward-looking statements require Alaris to make assumptions and are subject to inherent risks and uncertainties. Key assumptions include, but are not limited to, assumptions that: the required regulatory approvals for the Offering will be obtained in a timely fashion; the Debentures and trust units issued upon the conversion of the Debentures will be listed for trading on the TSX; interest rates will not rise in a matter materially different from the prevailing market expectations over the next 12 to 24 months; no widespread global health crisis will impact the economy or any Partners’ operations in a material way in the next 12 months; the businesses of the majority of our Partners will continue to grow; the businesses of new Partners and those of existing Partners will perform in line with Alaris’ expectations and diligence; more private companies will require access to alternative sources of capital and that Alaris will have the ability to raise required equity and/or debt financing on acceptable terms.

    Forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assurances of future performance. The actual results of the Trust and the Partners could materially differ from those anticipated in the forward-looking statements contained herein as a result of certain risk factors, including, but not limited to: the ability of the Trust to obtain the required regulatory approvals for the Offering; the ability of our Partners and, correspondingly, Alaris to meet performance expectations for 2025 and beyond; any change in the senior lenders’ outlook for Alaris’ business; management’s ability to assess and mitigate the impacts of any local, regional, national or international health crises like COVID-19 or its variants; the dependence of Alaris on the Partners; reliance on key personnel; general economic conditions in Canada, North America and globally; failure to complete or realize the anticipated benefit of Alaris’ financing arrangements with the Partners; a failure of the Trust or any Partners to obtain required regulatory approvals on a timely basis or at all; changes in legislation and regulations and the interpretations thereof; risks relating to the Partners and their businesses, including, without limitation, a material change in the operations of a Partner or the industries they operate in; inability to close additional Partner contributions in a timely fashion, or at all; a change in the ability of the Partners to continue to pay Alaris’ distributions; a material change in the unaudited information provided to Alaris by the Partners; a failure of a Partner (or Partners) to realize on their anticipated growth strategies; a failure to achieve the expected benefits of the third-party asset management strategy or similar new investment structures and strategies; conflicts of interest that may arise under the asset management strategy or otherwise; a failure to achieve resolutions for outstanding issues with Partners on terms materially in line with management’s expectations or at all; and a failure to realize the benefits of any concessions or relief measures provided by Alaris to any Partner or to successfully execute an exit strategy for a Partner where desired. Additional risks that may cause actual results to vary from those indicated are discussed under the heading “Risk Factors” and “Forward Looking Statements” in the Trust’s Management Discussion and Analysis for the year ended December 31, 2024, which is filed under the Trust’s profile at www.sedarplus.ca and on its website at www.alarisequitypartners.com.

    Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. Statements containing forward-looking information reflect management’s current beliefs and assumptions based on information in its possession on the date of this news release. Although management believes that the assumptions reflected in the forward-looking statements contained herein are reasonable, there can be no assurance that such expectations will prove to be correct.

    The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this news release are made as of the date of this news release and Alaris does not undertake or assume any obligation to update or revise such statements to reflect new events or circumstances except as expressly required by applicable securities legislation.

    Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

    For further information please contact:

    ir@alarisequity.com
    P: (403) 260-1457
    Alaris Equity Partners Income Trust
    Suite 250, 333 24th Avenue S.W.
    Calgary, Alberta T2S 3E6
    www.alarisequitypartners.com

    The MIL Network

  • MIL-OSI: Satellogic Reports First Quarter 2025 Financial Results and Provides Business Update

    Source: GlobeNewswire (MIL-OSI)

    Revenue of $3.4 million in 1Q 2025

    Domestication to U.S. Completed

    Awarded $30 Million Contract for AI-First Constellation and Closed $20 Million Registered Direct Offering

    NEW YORK, May 13, 2025 (GLOBE NEWSWIRE) — Satellogic Inc. (NASDAQ: SATL), a leader in sub-meter resolution Earth Observation (“EO”) data collection, today provided a business update and reported its financial results for the three months ended March 31, 2025.

    “The year is off to a great start with our recent announcements in April related to our $30 million low latency, near-daily AI-first constellation contract, our sovereign defense and intelligence imagery sales to Brazil and Singapore, and the closing of a registered direct offering in which we received $20 million in gross proceeds, which further strengthened our liquidity position. These milestones, coupled with the completion of our domestication during the first quarter, positions Satellogic to focus on significant growth opportunities, underscoring the value of our data insights and technology,” said Satellogic CEO, Emiliano Kargieman.

    Rick Dunn, Chief Financial Officer, added, “In terms of financial results, we ended the quarter with $17.7 million of cash on hand (which does not include the proceeds from the aforementioned offering) and continued to reduce our cash used in operations by $5.4 million, or 53%, compared to the three months ended March 31, 2024. Our revenue also increased modestly by 2% to $3.4 million compared to the prior year period.”

    “We expect that our revenue for 2025 will largely be dependent on closing opportunities within our Space Systems line of business, which we anticipate will contribute considerable per unit cash flow and strong gross margin. As we look to 2025 and beyond, management continues to focus on near-term growth opportunities and moving the Company forward on a path to profitability,” concluded Dunn.

    Financial Results for the Three Months Ended March 31, 2025

    • Revenue for the three months ended March 31, 2025, increased by $0.1 million, or 2%, to $3.4 million, as compared to revenue of $3.3 million for the three months ended March 31, 2024. The increase was driven primarily by a $0.4 million increase in imagery ordered by new and existing Asset Monitoring customers, partially offset by a $0.4 million decrease in revenue generated from the Space Systems business line. Revenue for the three months ended March 31, 2025 included $2.6 million attributable to our Asset Monitoring line of business, $0.4 million attributable to our Space Systems line of business, and $0.4 million attributable to our CaaS line of business compared to $2.2 million, $0.7 million and $0.4 million, respectively, in the prior period.
    • Cost of Sales, exclusive of depreciation, decreased $0.1 million, or 5%, to $1.2 million for the three months ended March 31, 2025 from $1.3 million for the three months ended March 31, 2024. The decrease was driven primarily by lower Space Systems costs on lower sales volume, partially offset by higher outsourced ground station costs. However, as a percentage of revenue, our cost of sales were 37% for the three months ended March 31, 2025, as compared to 39% for the three months ended March 31, 2024.
    • Selling, General and Administrative expenses decreased $2.9 million, or 31%, to $6.5 million during the three months ended March 31, 2025, from $9.4 million for the three months ended March 31, 2024. The decrease was driven primarily by a $0.5 million decrease in professional fees consisting mainly of the accrued advisory fee pursuant to the Liberty Subscription Agreement and professional fees related to the secured convertible notes in 2024, partially offset by professional fees related to our domestication in 2025. The decrease was also partially driven by decreases in salaries, wages, stock-based compensation and other benefits as a result of the Company’s workforce reductions in 2024 and other expense reductions resulting from continued cash control measures during 2024.
    • Engineering expenses decreased $1.9 million, or 43%, to $2.5 million for the three months ended March 31, 2025 from $4.4 million for the three months ended March 31, 2024. The decrease was driven primarily by a decrease in salaries, wages, and other benefits and stock-based compensation as a result of the Company’s workforce reductions in 2024. The decrease was also partially driven by other expense reductions resulting from continued cash control measures during 2024, including the termination of our high-throughput plant lease in the Netherlands.
    • Net loss for the three months ended March 31, 2025, increased by $17.4 million to $32.6 million, as compared to a net loss of $15.2 million for the three months ended March 31, 2024. The increase was primarily driven by an increase in the change in fair value of financial instruments ($21.6 million) and other (expense) income, net ($1.6 million) offset by increases in revenue and decreases in operating costs.
    • Non-GAAP Adjusted EBITDA loss for the three months ended March 31, 2025, improved by $3.1 million to $6.1 million, from an Adjusted EBITDA loss of $9.1 million for the three months ended March 31, 2024, primarily due to year-over-year increases in revenue and decreases in operating expenses.
    • Cash and Cash Equivalents were $17.7 million at March 31, 2025, compared to $22.5 million at December 31, 2024.
    • Net cash used in operating activities was $4.7 million for the three months ended March 31, 2025, compared to $10.1 million for the three months ended December 31, 2024. This decline in net cash used by operations was primarily due to workforce reduction and overall cost control initiatives.

    Use of Non-GAAP Financial Measures

    We monitor a number of financial performance and liquidity measures on a regular basis in order to track the progress of our business. Included in these financial performance and liquidity measures are the non-GAAP measures, Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA. We believe these measures provide analysts, investors and management with helpful information regarding the underlying operating performance of our business, as they provide meaningful supplemental information regarding our performance and liquidity by removing the impact of items that we believe are not reflective of our underlying operating performance. The non-GAAP measures are used by us to evaluate our core operating performance and liquidity on a comparable basis and to make strategic decisions. The non-GAAP measures also facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations such as capital structures, taxation, depreciation, capital expenditures and other non-cash items (i.e., embedded derivatives, debt extinguishment and stock-based compensation) which may vary for different companies for reasons unrelated to operating performance. However, different companies may define these terms differently and accordingly comparisons might not be accurate. Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA are not intended to be a substitute for any GAAP financial measure. For the definitions of Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA and reconciliations to the most directly comparable GAAP measure, net loss, see below.

    We define Non-GAAP EBITDA as net loss excluding interest, income taxes, depreciation and amortization. We did not incur amortization expense during the years ended December 31, 2024 and 2023.

    We define Non-GAAP Adjusted EBITDA as Non-GAAP EBITDA further adjusted for professional fees related to the secured convertible notes, other expense (income), net, changes in the fair value of financial instruments and stock-based compensation. Other expense (income), net includes foreign exchange gain or loss and other non-operating income and expenses not considered indicative of our ongoing operational performance.

    The following table presents a reconciliation of Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA to its net loss for the periods indicated.

      Three Months Ended March 31,
    (in thousands of U.S. dollars)   2025       2024  
    Net loss available to stockholders $ (32,581 )   $ (15,178 )
    Interest expense         9  
    Income tax expense   715       1,433  
    Depreciation expense   2,687       2,845  
    Non-GAAP EBITDA $ (29,179 )   $ (10,891 )
    Professional fees related to Secured Convertible Notes         971  
    Other expense (income), net   167       (1,401 )
    Change in fair value of financial instruments   22,361       752  
    Stock-based compensation   595       1,446  
    Non-GAAP Adjusted EBITDA $ (6,056 )   $ (9,123 )
     

    About Satellogic

    Founded in 2010 by Emiliano Kargieman and Gerardo Richarte, Satellogic (NASDAQ: SATL) is the first vertically integrated geospatial company, driving real outcomes with planetary-scale insights. Satellogic is creating and continuously enhancing the first scalable, fully automated EO platform with the ability to remap the entire planet at both high-frequency and high-resolution, providing accessible and affordable solutions for customers.

    Satellogic’s mission is to democratize access to geospatial data through its information platform of high-resolution images to help solve the world’s most pressing problems including climate change, energy supply, and food security. Using its patented Earth imaging technology, Satellogic unlocks the power of EO to deliver high-quality, planetary insights at the lowest cost in the industry.

    With more than a decade of experience in space, Satellogic has proven technology and a strong track record of delivering satellites to orbit and high-resolution data to customers at the right price point.

    To learn more, please visit: http://www.satellogic.com

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws. The words “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intends”, “may”, “might”, “plan”, “possible”, “potential”, “predict”, “project”, “should”, “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are based on Satellogic’s current expectations and beliefs concerning future developments and their potential effects on Satellogic and include statements concerning Satellogic’s strategic realignment as a U.S. company, and the visibility and high growth opportunities it will provide in connection therewith. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. These statements are based on various assumptions, whether or not identified in this press release. These forward-looking statements are provided for illustrative purposes only and are not intended to serve, and must not be relied on by an investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Satellogic. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) our ability to generate revenue as expected, including due to challenges created by macroeconomic concerns, geopolitical uncertainty (e.g., trade relationships), financial market fluctuations and related factors, (ii) our ability to effectively market and sell our EO services and to convert contracted revenues and our pipeline of potential contracts into actual revenues, (iii) risks related to the secured convertible notes, (iv) the potential loss of one or more of our largest customers, (v) the considerable time and expense related to our sales efforts and the length and unpredictability of our sales cycle, (vi) risks and uncertainties associated with defense-related contracts, (vii) risk related to our pricing structure, (viii) our ability to scale production of our satellites as planned, (ix) unforeseen risks, challenges and uncertainties related to our expansion into new business lines, (x) our dependence on third parties, including SpaceX, to transport and launch our satellites into space, (xi) our reliance on third-party vendors and manufacturers to build and provide certain satellite components, products, or services and the inability of these vendors and manufacturers to meet our needs, (xii) our dependence on ground station and cloud-based computing infrastructure operated by third pirates for value-added services, and any errors, disruption, performance problems, or failure in their or our operational infrastructure, (xiii) risk related to certain minimum service requirements in our customer contracts, (xiv) market acceptance of our EO services and our dependence upon our ability to keep pace with the latest technological advances, including those related to artificial intelligence and machine learning, (xv) our ability to identify suitable acquisition candidates or consummate acquisitions on acceptable terms, or our ability to successfully integrate acquisitions, (xvi) competition for EO services, (xvii) challenges with international operations or unexpected changes to the regulatory environment in certain markets, (xviii) unknown defects or errors in our products, (xix) risk related to the capital-intensive nature of our business and our ability to raise adequate capital to finance our business strategies, (xx) uncertainties beyond our control related to the production, launch, commissioning, and/or operation of our satellites and related ground systems, software and analytic technologies, (xxi) the failure of the market for EO services to achieve the growth potential we expect, (xxii) risks related to our satellites and related equipment becoming impaired, (xxiii) risks related to the failure of our satellites to operate as intended, (xxiv) production and launch delays, launch failures, and damage or destruction to our satellites during launch, (xxv) the impact of natural disasters, unusual or prolonged unfavorable weather conditions, epidemic outbreaks, terrorist acts and geopolitical events (including the ongoing conflicts between Russia and Ukraine, in the Gaza Strip and the Red Sea region) on our business and satellite launch schedules and (xxvi) the anticipated benefits of the domestication may not materialize. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of Satellogic’s Annual Report on Form 10-K and other documents filed or to be filed by Satellogic from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Satellogic assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Satellogic can give no assurance that it will achieve its expectations.

    Contacts

    Investor Relations:

    Ryan Driver, VP of Strategy & Corporate Development
    ryan.driver@satellogic.com

    Media Relations:

    Satellogic
    pr@satellogic.com

    SATELLOGIC INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
    UNAUDITED
     
      Three Months Ended March 31,
    (in thousands of U.S. dollars, except share and per share amounts)   2025       2024  
    Revenue $ 3,387     $ 3,328  
    Costs and expenses      
    Cost of sales, exclusive of depreciation shown separately below   1,237       1,305  
    Selling, general and administrative   6,485       9,389  
    Engineering   2,493       4,387  
    Depreciation expense   2,687       2,845  
    Total costs and expenses   12,902       17,926  
    Operating loss   (9,515 )     (14,598 )
    Other (expense) income, net      
    Interest income, net   177       204  
    Change in fair value of financial instruments   (22,361 )     (752 )
    Other (expense) income, net   (167 )     1,401  
    Total other (expense) income, net   (22,351 )     853  
    Loss before income tax   (31,866 )     (13,745 )
    Income tax expense   (715 )     (1,433 )
    Net loss available to stockholders $ (32,581 )   $ (15,178 )
    Other comprehensive loss      
    Foreign currency translation gain (loss), net of tax   257       (137 )
    Comprehensive loss $ (32,324 )   $ (15,315 )
           
    Basic net loss per share for the period attributable to holders of Common Stock $ (0.34 )   $ (0.17 )
    Basic weighted-average Common Stock outstanding   96,655,349       90,331,496  
    Diluted net loss per share for the period attributable to holders of Common Stock $ (0.34 )   $ (0.17 )
    Diluted weighted-average Common Stock outstanding   96,655,349       90,331,496  
    SATELLOGIC INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    UNAUDITED
     
      March 31,   December 31,
    (in thousands of U.S. dollars, except per share and par value amounts)   2025       2024  
    ASSETS      
    Current assets      
    Cash and cash equivalents $ 17,716     $ 22,493  
    Restricted cash   305        
    Accounts receivable, net of allowance of $148 and $148, respectively   1,799       1,464  
    Prepaid expenses and other current assets   4,274       3,907  
    Total current assets   24,094       27,864  
    Property and equipment, net   25,802       27,228  
    Operating lease right-of-use assets   6,538       877  
    Other non-current assets   4,968       5,722  
    Total assets $ 61,402     $ 61,691  
    LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY      
    Current liabilities      
    Accounts payable $ 3,742     $ 3,754  
    Warrant liabilities   14,902       11,511  
    Earnout liabilities   1,992       1,501  
    Operating lease liabilities   989       363  
    Contract liabilities   6,308       5,871  
    Accrued expenses and other liabilities   13,661       11,621  
    Total current liabilities   41,594       34,621  
    Secured Convertible Notes at fair value   96,590       79,070  
    Operating lease liabilities   5,812       516  
    Other non-current liabilities   498       516  
    Total liabilities   144,494       114,723  
    Commitments and contingencies      
    Stockholders’ (deficit) equity      
    Preferred stock, $0.0001 par value, 5,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2024 and December 31, 2023          
    Class A Common Stock, $0.0001 par value, 385,000,000 shares authorized, 84,451,437 shares issued and 83,883,614 shares outstanding as of March 31, 2025 and 83,000,501 shares issued and 82,432,678 shares outstanding as of December 31, 2024          
    Class B Common Stock, $0.0001 par value, 15,000,000 shares authorized, 13,582,642 shares issued and outstanding as of March 31, 2025 and December 31, 2024          
    Treasury stock, at cost, 567,823 shares as of March 31, 2025 and 567,823 shares as of December 31, 2024   (8,603 )     (8,603 )
    Additional paid-in capital   358,511       356,247  
    Accumulated other comprehensive loss   (314 )     (571 )
    Accumulated deficit   (432,686 )     (400,105 )
    Total stockholders’ (deficit) equity   (83,092 )     (53,032 )
    Total liabilities and stockholders’ (deficit) equity $ 61,402     $ 61,691  
    SATELLOGIC INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    UNAUDITED
     
      Three Months Ended March 31,
    (in thousands of U.S. dollars)   2025       2024  
    Cash flows from operating activities:      
    Net loss $ (32,581 )   $ (15,178 )
    Adjustments to reconcile net loss to net cash used in operating activities:      
    Depreciation expense   2,687       2,845  
    Operating lease expense   421       538  
    Stock-based compensation   595       1,446  
    Change in fair value of financial instruments, net of interest paid on Secured Convertible Notes   20,691       752  
    Foreign exchange differences   (188 )     (643 )
    Loss on disposal of property and equipment   28       78  
    Expense for estimated credit losses on accounts receivable, net of recoveries         16  
    Non-cash change in contract liabilities   (46 )     (501 )
    Other, net         56  
    Changes in operating assets and liabilities:      
    Accounts receivable   (21 )     (932 )
    Prepaid expenses and other current assets   830       (377 )
    Accounts payable   569       1,764  
    Contract liabilities   438       (25 )
    Accrued expenses and other liabilities   2,024       601  
    Operating lease liabilities   (169 )     (555 )
    Net cash used in operating activities   (4,722 )     (10,115 )
    Cash flows from investing activities:      
    Purchases of property and equipment   (1,913 )     (1,942 )
    Net cash used in investing activities   (1,913 )     (1,942 )
    Cash flows from financing activities:      
    Proceeds from issuance of Common Stock under ATM Program, net of transaction costs   1,143        
    Payments for withholding taxes related to the net share settlement of equity awards   (375 )     (184 )
    Proceeds from exercise of stock options   916        
    Net cash provided by (used in) financing activities   1,684       (184 )
    Net (decrease) increase in cash, cash equivalents and restricted cash   (4,951 )     (12,241 )
    Effect of foreign exchange rate changes on cash and cash equivalents   177       542  
    Cash, cash equivalents and restricted cash – beginning of period   23,682       24,603  
    Cash, cash equivalents and restricted cash – end of period $ 18,908     $ 12,904  

    The MIL Network

  • MIL-OSI: Practice AI Accelerates Strategic Outreach and Legal Tech Partnerships Following a Dynamic PILMMA 2025 Super Summit

    Source: GlobeNewswire (MIL-OSI)

    DENVER, May 13, 2025 (GLOBE NEWSWIRE) — Practice AI, in collaboration with its esteemed partner Legal Soft, is proud to announce a series of new initiatives and partnerships for May 2025. Fresh off the success of the PILMMA 2025 Super Summit, which took place from April 29 to May 2 at the Hilton Denver City Center. Practice AI is set to expand its outreach efforts, further integrating artificial intelligence (AI) in the legal domain in ways that are both innovative and ethically grounded.

    A New Era Unfolds: Recapping the PILMMA 2025 Super Summit

    The PILMMA Super Summit has long been recognized as the premier legal marketing and management conference designed for “serious lawyers” who are determined to create the practices they truly want rather than settling for the status quo. This year’s edition, held in Denver, Colorado, attracted top legal professionals, legal tech innovators, and forward-thinking industry leaders from across the country. The summit offered an immersive three-day experience focused on elite networking, mastermind sessions, and breakthrough strategies to redefine legal practices.

    Key Highlights from the Summit Include:

    • Elite Networking: Attendees had the opportunity to connect with some of the most successful lawyers, legal marketers, and firm owners in the country. The event’s robust networking sessions provided fertile ground for forging relationships that promise to drive future collaborations and strategic partnerships.
    • Masterminding for Growth: With a dedicated focus on the “Mastermind Effect,” the summit featured interactive sessions led by seasoned professionals who shared insights on how to scale a law firm exponentially by systematically breaking through common operational barriers.
    • Expert-Led Workshops: The agenda was packed with sessions on optimizing legal practice management, leveraging AI to boost marketing performance, and deploying cutting-edge legal tech to increase efficiency. These discussions helped attendees pinpoint exactly where their practices stood and how incremental improvements could lead to significant breakthroughs.
    • Strategic Focus on AI: A recurring theme at the summit was the transformative potential of AI in law. Participants explored topics such as enhancing legal research accuracy, automating routine tasks, and integrating AI-driven analytics to better serve clients.

    For more details on the PILMMA 2025 Super Summit agenda and its mission to empower legal professionals, visit the official summit page at pilmma.org/summit pilmma.org.

    The Ideal Backdrop for Innovation and Collaboration

    Held at the Hilton Denver City Center, located at 1701 California Street, Denver, CO 80202, the summit provided an inspiring setting for the convergence of industry leaders and forward-thinking professionals. The city’s vibrant atmosphere and modern facilities contributed significantly to the event’s success, offering attendees both a conducive environment for learning and ample opportunities for networking.

    During the summit, participants experienced a dynamic mix of keynote sessions, hands-on workshops, and interactive networking events, all aimed at fostering a collaborative spirit among legal professionals. This environment reinforced the idea that strategic partnerships, like the one between Practice AI and Legal Soft, are key to unlocking new possibilities in legal tech innovation.

    Forging the Future: Initiatives and Partnership Highlights

    In the coming months, Practice AI is set to launch several initiatives that build on the momentum generated by the PILMMA 2025 Super Summit. These initiatives are designed to foster continuous innovation and deeper collaboration across the legal tech community:

    • Educational Workshops and Seminars: Practice AI and Legal Soft will jointly host a series of workshops aimed at demystifying AI for legal professionals. These sessions will provide practical guidance on integrating AI into everyday legal practice, focusing on both technological and ethical considerations.
    • Collaborative Research and Development Projects: By leveraging the combined expertise of both partners, new R&D projects will explore innovative AI applications: From predictive analytics in litigation to advanced legal document automation. These projects will serve as testbeds for pioneering solutions that can be scaled across the industry.
    • Industry Roundtables and Peer-to-Peer Learning: Recognizing the value of shared experiences, the partners plan to organize roundtable discussions with thought leaders from both the legal and tech sectors. These sessions will address the challenges of AI adoption and offer strategies for sustainable growth in legal practice.
    • Customized AI Solutions for Law Firms: Practice AI is working on tailoring its AI tools to meet the unique needs of individual law firms. By offering customizable solutions, the company aims to ensure that every legal practice, regardless of size or specialty, can benefit from the advantages of AI.

    A Call for Collaborative Transformation

    At the core of Practice AI’s mission is a clear vision: technology, when implemented with responsibility and foresight, can transform legal practice for the better. Hamid Kohan’s words at the summit resonate with this vision. “Practice AI is now intensifying its outreach efforts to forge strategic partnerships with leading legal professionals, ensuring that AI is implemented responsibly and efficiently,” he reiterated. This commitment to ethical AI adoption serves as the guiding principle for all future initiatives.

    Kohan’s second remark further underscores the company’s commitment to education and collaboration. “We are committed to raising awareness on using AI the smart way. By collaborating with legal tech leaders and seasoned legal professionals, we are paving the way for a future where technology and law work in harmony to deliver better outcomes for all stakeholders.” These statements not only reflect the current momentum at Practice AI but also set the tone for a future where continuous dialogue and shared innovation drive industry progress.

    Industry Impact and Looking Ahead

    The transformative impact of AI in the legal field is already evident. From automating mundane tasks to providing deep insights through data analytics, AI is reshaping the way legal services are delivered. Practice AI’s initiatives for May 2025 are designed to help legal professionals adapt to these changes and harness the full potential of AI. With strategic outreach and robust partnerships, the company is leading the charge toward a smarter, more efficient legal industry.

    Key anticipated impacts include:

    • A Shift in Legal Practice Paradigms: As more law firms begin to adopt AI-driven tools, the traditional models of legal practice are evolving. This shift is expected to lead to more agile, client-focused, and cost-effective legal services.
    • Enhanced Professional Development: By providing targeted educational programs, Practice AI is helping legal professionals develop the skills needed to thrive in an increasingly digital and data-driven environment.
    • A Robust Ecosystem of Innovation: The collaborative efforts between Practice AI and its strategic partners such as Legal Soft are set to foster a thriving ecosystem of innovation, where new ideas and solutions are continuously tested and refined.
    • Greater Transparency and Ethical Standards: Emphasizing responsible AI use ensures that ethical considerations remain at the forefront, building trust among clients and reinforcing the integrity of legal practices.

    A Bold Step Forward for Legal Technology

    The PILMMA 2025 Super Summit has laid the foundation for an exciting new chapter in legal technology. As Practice AI and Legal Soft build on the success of the event, the focus now turns to a future defined by strategic partnerships, innovative AI solutions, and a commitment to ethical, client-centric practices. The initiatives launched this May are not just steps toward technological advancement; they are a comprehensive strategy to empower legal professionals, drive efficiency, and transform legal services.

    Practice AI’s renewed outreach and collaboration efforts reaffirm its position as a leader in legal tech innovation. By bridging the gap between cutting-edge AI and traditional legal practices, the company is not only redefining the future of law but also ensuring that every legal professional has the tools and support needed to excel in a rapidly evolving landscape.

    As Practice AI embarks on this bold new phase, the focus remains on collaboration, continuous learning, and ethical technology adoption. The successful PILMMA 2025 Super Summit has not only provided valuable insights into the future of legal practice but also set the stage for transformative partnerships that will drive innovation for years to come. By forging strong alliances and engaging directly with the legal community, Practice AI is ensuring that the integration of AI in law is both progressive and responsible, ushering in an era of enhanced efficiency, improved client service, and sustained industry growth.

    For more information on the PILMMA 2025 Super Summit and to view the detailed agenda and event highlights, please visit PILMMA Summit pilmma.org.

    For media inquiries, please contact:
    Practice AI
    Address: 21731 Ventura Blvd. #175, Woodland Hills, CA 91364
    Phone: (424) 476-5858
    Email: sales@lawpractice.ai

    Visit us on social media:
    Facebook | Instagram | LinkedIn | YouTube | X.com

    The MIL Network

  • MIL-OSI: Urgently Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    VIENNA, Va., May 13, 2025 (GLOBE NEWSWIRE) — Urgent.ly Inc. (Nasdaq: ULY) (“Urgently”), a U.S.-based leading provider of digital roadside and mobility assistance technology and services, today reported financial results for the first quarter ended March 31, 2025.

    “I am pleased with our solid start to the year, as we delivered revenue in line with our expectations and record gross margin of 26%. In addition, we achieved GAAP operating loss improvement of 71% and non-GAAP operating loss improvement of 93%, or $0.4 million, which was ahead of our guidance for non-GAAP operating loss of $1.0 million. By almost all key measures, we delivered our best quarter as a public company, and I am proud of the tireless effort across the organization to achieve these results. As we look ahead to the balance of the year, we expect to deliver positive sequential revenue growth during the third quarter, sustain our non-GAAP operating break-even and move closer to positive cash flow,” said Matt Booth, CEO of Urgently.

    First Quarter 2025 Updates:

    • Revenue of $31.3 million, a decrease of 22% year over year.
    • Gross profit of $8.0 million, a decrease of 15% year over year.
    • Gross margin of 26% compared to 23% in the prior year period.
    • GAAP operating expenses of $10.4 million, an improvement of 41%, compared to $17.7 million in the prior year period.
    • Non-GAAP operating expenses of $8.4 million, an improvement of 42%, compared to $14.5 million in the prior year period.
    • GAAP operating loss of $2.4 million compared to $8.3 million in the prior year period, an improvement of 71%.
    • Non-GAAP operating loss of $0.4 million, an improvement of 93%, compared to $5.1 million in the prior year period.
    • Approximately 189,000 dispatches completed.
    • Consumer satisfaction score of 4.6 out of 5 stars.

    Earnings Conference Call

    Urgently will host a conference call to discuss the first quarter 2025 financial results on May 13, 2025 at 5:00 p.m. Eastern Time. The conference call can be accessed live over the phone by dialing 1-877-317-6789 (USA) or 1-412-317-6789 (International). The replay will be available via webcast through Urgently’s Investor Relations website at https://investors.geturgently.com.

    About Urgently

    Urgently is focused on helping everyone move safely, without disruption, by safeguarding drivers, promptly assisting their journey, and employing technology to proactively avert possible issues. The company’s digitally native software platform combines location-based services, real-time data, AI and machine-to-machine communication to power roadside assistance solutions for leading brands across automotive, insurance, telematics and other transportation-focused verticals. Urgently fulfills the demand for connected roadside assistance services, enabling its partners to deliver exceptional user experiences that drive high customer satisfaction and loyalty, by delivering innovative, transparent and exceptional connected mobility assistance experiences on a global scale. For more information, visit www.geturgently.com.

    For media and investment inquiries, please contact:

    Press: media@geturgently.com

    Investor Relations: investorrelations@geturgently.com

    Non-GAAP Financial Measures

    In addition to our financial information presented in accordance with GAAP, we believe Non-GAAP Operating Expenses and Non-GAAP Operating Loss are useful to investors in evaluating our operating performance. We use the non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that the non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, may be helpful to investors because they provide consistency and comparability with past financial performance and meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our business, results of operations, or outlook. The non-GAAP financial measures are presented for supplemental informational purposes only, have limitations as analytical tools, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP and may be different from similarly-titled non-GAAP financial measures used by other companies. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, which could reduce the usefulness of the non-GAAP financial measures presented herein as a tool for comparison.

    A reconciliation is provided below for each of the non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to our most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. We define Non-GAAP Operating Expenses as operating expenses, excluding depreciation and amortization expense, stock-based compensation expense, and non-recurring charges (or income) such as transaction and restructuring costs. We define Non-GAAP Operating Loss as operating loss, excluding depreciation and amortization expense, stock-based compensation expense, and non-recurring charges (or income) such as transaction and restructuring costs.

    For a discussion of Non-GAAP Operating Expenses and Non-GAAP Operating Loss, please see the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Urgently’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which will be filed with the Securities and Exchange Commission (the “SEC”) by May 15, 2025.

    Forward Looking Statements

    This press release contains or may contain “forward-looking statements” within the meaning of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or Urgently’s future financial or operating performance. Such statements are based upon current plans, estimates and expectations of management of Urgently in light of historical results and trends, current conditions and potential future developments, and are subject to various risks and uncertainties that could cause actual results to differ materially from such statements. The inclusion of forward-looking statements should not be regarded as a representation that such plans, estimates and expectations will be achieved. Forward-looking terms such as “may,” “will,” “could,” “should,” “would,” “plan,” “potential,” “intend,” “anticipate,” “project,” “predict,” “target,” “believe,” “continue,” “estimate” or “expect” or the negative of these words or other words, terms and phrases of similar nature are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements, other than historical facts, including, without limitation, statements regarding Urgently’s expected revenue growth, cash flow and non-GAAP operating loss break-even, and any assumptions underlying any of the foregoing, are forward-looking statements.

    There are a significant number of factors that could cause actual results to differ materially from statements made in this press release and our earnings call, including but not limited to: risks associated with our ability to raise funds through future financings and the sufficiency of our cash and cash equivalents to meet our liquidity needs; our history of losses; our limited operating history; our ability to service our debt, comply with our debt agreements and refinance our obligations under such agreements, including by successfully deploying the capital from the new credit facility and repaying our new and existing debt facilities; our ability to retain customers and expand existing customers’ use of our platform; our ability to attract new customers; our ability to expand into new solutions, technologies and geographic regions; our ability to adequately forecast consumer demand and optimize our network of service providers; our ability to compete in the markets in which we participate; our ability to comply with laws and regulations applicable to our business; our ability to continue as a going concern; our ability to develop and maintain an effective system of internal controls and procedures and accurately report our financial results in a timely manner; our ability to maintain the listing of our common stock on the Nasdaq Stock Market LLC; and expectations regarding the impact of weather events, natural disasters or health epidemics, including the war between Hamas and Israel, on our business. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our filings with the SEC, including in our annual report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on March 14, 2025, as amended by our annual report on Form 10-K/A, which was filed with the SEC on April 17, 2025, our quarterly reports on Form 10-Q, and other filings and reports that we may file from time to time with the SEC. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.

    Consolidated Balance Sheets
    (in thousands)
    (unaudited)

        March 31, 2025     December 31, 2024  
    Assets            
    Current assets:            
    Cash and cash equivalents   $ 6,410     $ 14,179  
    Accounts receivable, net     23,506       22,890  
    Prepaid expenses and other current assets     2,900       3,687  
    Total current assets     32,816       40,756  
    Right-of-use assets     681       810  
    Property, equipment and software, net     1,529       1,577  
    Capitalized software costs, net     5,291       4,637  
    Intangible assets, net     4,006       4,396  
    Other non-current assets     2,109       1,895  
    Total assets   $ 46,432     $ 54,071  
                 
    Liabilities and Stockholders’ Deficit            
    Current liabilities:            
    Accounts payable   $ 3,160     $ 2,900  
    Accrued expenses and other current liabilities     15,783       19,991  
    Current lease liabilities     371       446  
    Current portion of long-term debt, net     13,198       14,257  
    Total current liabilities     32,512       37,594  
    Long-term lease liabilities     406       466  
    Long-term debt, net     40,381       39,883  
    Derivative liability     471        
    Other long-term liabilities     8,740       7,798  
    Total liabilities     82,510       85,741  
    Stockholders’ deficit:            
    Common stock     1       1  
    Additional paid-in capital     168,201       167,125  
    Accumulated deficit     (204,280 )     (198,796 )
    Total stockholders’ deficit     (36,078 )     (31,670 )
    Total liabilities and stockholders’ deficit   $ 46,432     $ 54,071  

    Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)

        Three Months Ended March 31,  
        2025     2024  
    Revenue   $ 31,272     $ 40,092  
    Cost of revenue     23,283       30,741  
    Gross profit     7,989       9,351  
    Operating expenses:            
    Research and development     1,968       4,243  
    Sales and marketing     703       2,019  
    Operations and support     2,411       4,321  
    General and administrative     4,368       6,014  
    Depreciation and amortization     986       1,102  
    Total operating expenses     10,436       17,699  
    Operating loss     (2,447 )     (8,348 )
    Other income (expense), net:            
    Interest expense, net     (3,277 )     (3,789 )
    Change in fair value of derivative liability     37        
    Change in fair value of accrued purchase consideration     77       821  
    Loss on debt extinguishment           (1,405 )
    Income from equity method investment     150        
    Other expense, net     (5 )     (255 )
    Total other expense, net     (3,018 )     (4,628 )
    Loss before income taxes     (5,465 )     (12,976 )
    Provision for income taxes     19       39  
    Net loss   $ (5,484 )   $ (13,015 )
                 
    Loss per share, basic and diluted   $ (4.69 )   $ (11.69 )

    Non-GAAP Financial Measures
    (in thousands)
    (unaudited)

    Reconciliation of Operating Expenses to Non-GAAP Operating Expenses

        Three Months Ended March 31,  
        2025     2024  
    Operating expenses   $ 10,436     $ 17,699  
    Less: Depreciation and amortization expense     (986 )     (1,102 )
    Less: Stock-based compensation expense     (538 )     (718 )
    Less: Non-recurring transaction costs     (375 )     (726 )
    Less: Restructuring costs     (174 )     (699 )
    Non-GAAP operating expenses   $ 8,363     $ 14,454  
     

    Reconciliation of Operating Loss to Non-GAAP Operating Loss

        Three Months Ended March 31,  
        2025     2024  
    Operating loss   $ (2,447 )   $ (8,348 )
    Add: Depreciation and amortization expense     986       1,102  
    Add: Stock-based compensation expense     538       718  
    Add: Non-recurring transaction costs     375       726  
    Add: Restructuring costs     174       699  
    Non-GAAP operating loss   $ (374 )   $ (5,103 )

    The MIL Network

  • MIL-OSI: Evolution Petroleum Reports Fiscal Third Quarter 2025 Results and Declares Quarterly Cash Dividend for Fiscal Fourth Quarter

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, Texas, May 13, 2025 (GLOBE NEWSWIRE) — Evolution Petroleum Corporation (NYSE American: EPM) (“Evolution” or the “Company”) today announced its financial and operating results for its fiscal third quarter ended March 31, 2025. Evolution also declared its 47th consecutive quarterly cash dividend of $0.12 per common share for the fiscal 2025 fourth quarter.

    Financial & Operational Highlights

    ($ in thousands) Q3 2025   Q2 2025   Q3 2024     % Change vs Q3/Q2     % Change vs Q3/Q3   2025 YTD   2024 YTD  
    % Change vs YTD’24
    Average BOEPD 6,667     6,935       7,209       (4 )%     (8 )%   7,033       6,651       6 %
    Revenues $ 22,561     $ 20,275     $ 23,025       11 %     (2 )%   $ 64,732     $ 64,650       %
    Net Income (Loss) (1) $ (2,179 )   $ (1,825 )   $ 289       NM       NM     $ (1,939 )   $ 2,845       NM  
    Adjusted Net Income (Loss) (1)(2) $ 806     $ (841 )   $ 978       NM       (18 )%   $ 701     $ 3,597       (81 )%
    Adjusted EBITDA(3) $ 7,421     $ 5,688     $ 8,476       30 %     (12 )%   $ 21,234     $ 22,011       (4 )%

    _____________________

    (1) “NM” means “Not Meaningful.”
    (2) Adjusted Net Income is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information.
    (3) Adjusted EBITDA is Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization and is a non-GAAP financial measure; see the non-GAAP reconciliation schedules to the most comparable GAAP measures at the end of this release for more information.
       
    • Fiscal Q3 production was 6,667 average barrels of oil equivalent per day (“BOEPD”), with oil accounting for 52% of revenue, natural gas accounting for 35%, and natural gas liquids (“NGLs”) accounting for 13% of revenue during the quarter.
    • Amid market volatility in fiscal Q3, the Company benefited from its diversified energy portfolio, as reflected by a 30% increase in Adjusted EBITDA(3) versus fiscal Q2.
    • Fiscal Q3 revenue rose 11% versus Fiscal Q2, largely driven by the strength of natural gas revenue, which increased 34% during the quarter.
    • $4.1 million returned to shareholders in the form of cash dividends during fiscal Q3, and $4.0 million of principal repaid on its Senior Secured Credit Facility.
    • Activities subsequent to quarter end:
      • Four gross new wells were brought online at the Chaveroo Field under budget, with early production rates exceeding expectations.
      • Closed the highly accretive $9.0 million acquisition of non-operated oil and natural gas assets located in New Mexico, Texas, and Louisiana (the “TexMex” acquisition).
      • As of today, production adds from the four new gross Chaveroo wells and TexMex are contributing more than 850 net BOEPD to production.

    Kelly Loyd, President and Chief Executive Officer, commented: “We are maintaining our quarterly dividend at $0.12 per share for the twelfth consecutive quarter, underscoring our commitment to sustainable shareholder returns as well as our confidence in the strength of our asset base, even in a volatile commodity price environment.

    “Our third quarter results reflect the benefits of our balanced, long-life portfolio of producing assets that are capable of both flourishing in attractive price environments and withstanding cyclical lows. Despite weather and maintenance-related downtime, which affected production, we were able to more than meet all of our capital obligations during the quarter, including ~$8.5 million in dividend and capex payments, as well as repayment of $4.0 million of principal on our Senior Secured Credit Facility.

    “Subsequent to quarter end, we closed the TexMex acquisition and turned in-line our latest four Chaveroo wells. TexMex and the four new gross Chaveroo wells are currently contributing more than 850 net BOEPD to production. We also expect to benefit from recent and ongoing drilling activities in our SCOOP/STACK area. When combined with the strength in natural gas prices, these production additions are expected to meaningfully benefit our next fiscal quarter.

    Mr. Loyd concluded, “In coordination with our Chaveroo partner, we have agreed to delay the start of our third development block until later into our fiscal year 2026. Our current focus is on acquiring oil-weighted, low-decline producing properties at discounted prices, or natural gas properties which can be hedged favorably for years to come, while strategically deferring development of our high-value, oil-weighted locations, preserving value for our shareholders until oil market conditions improve. Maintaining our dividend is a top priority, and we believe our resilient portfolio and strong financial position will enable us to continue with our dividend program well into the future.”

    Fiscal Third Quarter 2025 Financial Results

    Total revenues decreased 2% to $22.6 million compared to $23.0 million in the year-ago quarter. The decline was driven primarily by an 8% decrease in production volumes, partially offset by a 7% increase in average realized commodity prices. The decrease in production volumes was primarily due to planned maintenance at the central facility and NGL plant downtime at Delhi Field, January winter weather impacts at Barnett Shale, as well as natural production declines, partially offset by additional production from the Company’s SCOOP/STACK properties acquired in February 2024.

    Lease operating costs (“LOE”) increased to $13.4 million compared to $12.6 million in the year-ago quarter. The increase was driven by CO2 purchases at Delhi Field, which resumed in October 2024 after being suspended in February 2024, coupled with a full quarter of the Company’s SCOOP/STACK properties acquired in February 2024, increasing lease operating costs by $0.5 million compared to the year-ago quarter. On a per unit basis, total LOE increased 16% to $22.32 per BOE compared to $19.24 per BOE in the year-ago quarter.

    Depletion, depreciation, and accretion expense was $5.0 million compared to $5.9 million in the year-ago period. On a per BOE basis, the Company’s current quarter depletion rate decreased to $7.68 per BOE compared to $8.43 per BOE in the year-ago period due to a decrease in its depletable base.

    General and administrative (“G&A”) expenses, excluding stock-based compensation, were $1.9 million for both the current and year-ago periods. On a per BOE basis, G&A expenses increased to $3.22 compared to $2.85 in the year-ago period. The increase per unit is the result of decreased production in the current period.

    The Company reported a net loss of $2.2 million or $(0.07) per share, compared to net income of $0.3 million or $0.01 per share in the year-ago period. Excluding the impact of unrealized losses, adjusted net income was $0.8 million or $0.02 per diluted share, compared to adjusted net income of $1.0 million or $0.03 per diluted share in the prior quarter.

    Adjusted EBITDA was $7.4 million compared to $8.5 million in the year-ago period. The decrease was primarily due to decreased revenue as a result of lower production and higher total operating costs due to CO2 purchases at Delhi Field, which resumed in October 2024 after being suspended in February 2024.

    Production & Pricing

    Average price per unit: Q3 2025   Q3 2024   % Change vs Q3/Q3
    Crude oil (BBL) $ 68.42     $ 73.06       (6) %
    Natural gas (MCF)   3.87       2.77       40 %
    Natural Gas Liquids (BBL)   32.28       25.26       28 %
    Equivalent (BOE)   37.60       35.10       7 %
                           

    Total production for the third quarter of fiscal 2025 decreased 7.5% to 6,667 net BOEPD compared to 7,209 net BOEPD in the year-ago period. Total production for the third quarter of fiscal 2025 included 1,911 barrels per day (“BOPD”) of crude oil, 3,723 BOEPD of natural gas, and 1,033 BOEPD of NGLs. The decrease in total production was driven by planned maintenance at the central facility and NGL plant downtime at Delhi Field, January winter weather impacts at Barnett Shale, as well as natural production declines partially offset by additional production from the Company’s SCOOP/STACK properties acquired in February 2024. Total oil and natural gas liquids production generated 65% of revenue for the quarter compared to 75% in the year-ago period.

    The Company’s average realized commodity price (excluding the impact of derivative contracts) increased 7% to $37.60 per BOE, compared to $35.10 per BOE in the year-ago period. These increases were primarily driven by an increase of approximately 40% in realized natural gas prices year over year.

    Operations Update

    At SCOOP/STACK, the Company brought online 13 gross wells fiscal year-to-date, with an additional five wells in progress.

    At Chaveroo, the Company successfully completed and brought online four new gross wells in the second development block. These wells were completed on schedule and under budget. Although very early in the productive life of the wells, production rates are significantly exceeding expectations.

    In the Williston Basin, oil production was up quarter over quarter as a result of deferred oil sales at the end of Q2 to Q3. Gas and NGLs increased quarter over quarter, benefiting from a full quarter of gas sales. The Williston field continues to generate solid returns.

    At Delhi, production was temporarily affected by planned maintenance at the Delhi Central Facility, which resulted in a shutdown of the entire field for a few days and at the NGL Plant for approximately two weeks.  At the end of the quarter, the decision was made to switch from purchasing CO2 volumes to additional water injection.  The operator will continue to inject approximately 300 MMCFPD of recycled CO2.  The Company and the operator believe this will be the most economical way to run the field and will significantly reduce operating costs while maximizing cash flow.

    Jonah remained steady, with a temporary dip in volumes during February due to the impact of winter weather. However, strong winter natural gas pricing contributed positively to overall cash flow for the quarter.

    Barnett Shale delivered consistent cash-flow generation, reflecting its reliability and operational stability. Despite brief downtime in January due to winter storms, production remained steady overall, with improved realized pricing for natural gas and NGLs serving as a tailwind for financial results. These favorable pricing dynamics helped offset broader commodity price weakness and underscore Barnett’s continued role as a valuable contributor to our diversified portfolio.

    Balance Sheet, Liquidity, and Capital Spending

    On March 31, 2025, cash and cash equivalents totaled $5.6 million, with a working capital deficit of $2.7 million primarily due to unrealized losses on current derivative contracts, which vary quarter-to-quarter based on forecasted commodity prices at the end of each quarter. Evolution had $35.5 million of borrowings outstanding under its revolving credit facility and total liquidity of $20.1 million, including cash and cash equivalents. In Fiscal Q3, Evolution paid $4.1 million in common stock dividends, $4.0 million in repayments of borrowings of its Senior Secured Credit Facility, $1.8 million in deposits for its TexMex Acquisition, and $4.4 million in capital expenditures. During the quarter ended March 31, 2025, the Company sold a total of approximately 0.2 million shares of its common stock under its At-the-Market Sales Agreement for net proceeds of approximately $1.1 million, after deducting less than $0.1 million in offering costs.

    The Company has received approval from its lender, MidFirst Bank, to extend the maturity of the existing Senior Secured Credit Facility to April 2028 and increase their total commitments from $50.0 million to $55.0 million. Also, the Company expects to receive $10.0 million in additional commitments from a new lender, Prism Bank, bringing the total commitments to $65.0 million.

    Cash Dividend on Common Stock

    On May 12, 2025, Evolution’s Board of Directors declared a cash dividend of $0.12 per share of common stock, which will be paid on June 30, 2025, to common stockholders of record on June 13, 2025. This will be the 47th consecutive quarterly cash dividend on the Company’s common stock since December 31, 2013. To date, Evolution has returned approximately $130.7 million, or $3.93 per share, back to stockholders in common stock dividends.

    Conference Call

    As previously announced, Evolution Petroleum will host a conference call on Wednesday, May 14, 2025, at 10:00 a.m. CT to review its fiscal third quarter 2025 financial and operating results. Participants can join online at https://event.choruscall.com/mediaframe/webcast.html?webcastid=ASNQRrWs or by dialing (844) 481-2813. Dial-in participants should ask to join the Evolution Petroleum Corporation call. A replay will be available through May 14, 2026, via the webcast link provided and on Evolution’s Investor Relations website at www.ir.evolutionpetroleum.com.

    About Evolution Petroleum

    Evolution Petroleum Corporation is an independent energy company focused on maximizing total shareholder returns through the ownership of and investment in onshore oil and natural gas properties in the U.S. The Company aims to build and maintain a diversified portfolio of long-life oil and natural gas properties through acquisitions, selective development opportunities, production enhancements, and other exploitation efforts. Visit www.evolutionpetroleum.com for more information.

    Cautionary Statement

    All forward-looking statements contained in this press release regarding the Company’s current and future expectations, potential results, and plans and objectives involve a wide range of risks and uncertainties. Statements herein using words such as “believe,” “expect,” “may,” “plans,” “outlook,” “should,” “will,” and words of similar meaning are forward-looking statements. Although the Company’s expectations are based on business, engineering, geological, financial, and operating assumptions that it believes to be reasonable, many factors could cause actual results to differ materially from its expectations. The Company gives no assurance that its goals will be achieved. These factors and others are detailed under the heading “Risk Factors” and elsewhere in our periodic reports filed with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to update any forward-looking statement.

    Contact
    Investor Relations
    (713) 935-0122
    ir@evolutionpetroleum.com

           
    Evolution Petroleum Corporation

    Condensed Consolidated Statements of Operations (Unaudited)

    (In thousands, except per share amounts)

           
      Three Months Ended   Nine Months Ended
      March 31,    December 31,   March 31, 
      2025   2024   2024   2025   2024
    Revenues                            
    Crude oil $ 11,769     $ 14,538     $ 11,763     $ 38,269     $ 38,913  
    Natural gas   7,790       5,860       5,793       17,868       17,943  
    Natural gas liquids   3,002       2,627       2,719       8,595       7,794  
    Total revenues   22,561       23,025       20,275       64,732       64,650  
    Operating costs                            
    Lease operating costs   13,388       12,624       12,793       37,971       36,865  
    Depletion, depreciation, and accretion   5,014       5,900       5,433       16,172       14,760  
    General and administrative expenses   2,573       2,417       2,654       7,754       7,522  
    Total operating costs   20,975       20,941       20,880       61,897       59,147  
    Income (loss) from operations   1,586       2,084       (605 )     2,835       5,503  
    Other income (expense)                            
    Net gain (loss) on derivative contracts   (3,802 )     (1,183 )     (1,219 )     (3,223 )     (1,183 )
    Interest and other income   55       63       52       164       283  
    Interest expense   (705 )     (518 )     (764 )     (2,292 )     (584 )
    Income (loss) before income taxes   (2,866 )     446       (2,536 )     (2,516 )     4,019  
    Income tax (expense) benefit   687       (157 )     711       577       (1,174 )
    Net income (loss) $ (2,179 )   $ 289     $ (1,825 )   $ (1,939 )   $ 2,845  
    Net income (loss) per common share:                            
    Basic $ (0.07 )   $ 0.01     $ (0.06 )   $ (0.07 )   $ 0.09  
    Diluted $ (0.07 )   $ 0.01     $ (0.06 )   $ (0.07 )   $ 0.08  
    Weighted average number of common shares outstanding:                            
    Basic   33,433       32,702       32,934       33,027       32,692  
    Diluted   33,433       32,854       32,934       33,027       32,920  
                                           
    Evolution Petroleum Corporation

    Condensed Consolidated Balance Sheets (Unaudited)

    (In thousands, except share and per share amounts)

           
      March 31, 2025   June 30, 2024
    Assets              
    Current assets              
    Cash and cash equivalents $ 5,601     $ 6,446  
    Receivables from crude oil, natural gas, and natural gas liquids revenues   10,707       10,826  
    Derivative contract assets   828       596  
    Prepaid expenses and other current assets   2,658       3,855  
    Total current assets   19,794       21,723  
    Property and equipment, net of depletion, depreciation, and impairment              
    Oil and natural gas properties, net, full-cost method of accounting, of which none were excluded from amortization   133,514       139,685  
                   
    Other noncurrent assets              
    Derivative contract assets   48       171  
    Other assets   3,038       1,298  
    Total assets $ 156,394     $ 162,877  
    Liabilities and Stockholders’ Equity              
    Current liabilities              
    Accounts payable $ 11,977     $ 8,308  
    Accrued liabilities and other   7,092       6,239  
    Derivative contract liabilities   3,453       1,192  
    State and federal taxes payable         74  
    Total current liabilities   22,522       15,813  
    Long term liabilities              
    Senior secured credit facility   35,500       39,500  
    Deferred income taxes   4,572       6,702  
    Asset retirement obligations   20,398       19,209  
    Derivative contract liabilities   1,742       468  
    Operating lease liability         58  
    Total liabilities   84,734       81,750  
    Commitments and contingencies              
    Stockholders’ equity              
    Common stock; par value $0.001; 100,000,000 shares authorized: issued and outstanding 34,284,369 and 33,339,535 shares as of March 31, 2025 and June 30, 2024, respectively   34       33  
    Additional paid-in capital   45,786       41,091  
    Retained earnings   25,840       40,003  
    Total stockholders’ equity   71,660       81,127  
    Total liabilities and stockholders’ equity $ 156,394     $ 162,877  
                   
    Evolution Petroleum Corporation

    Condensed Consolidated Statements of Cash Flows (Unaudited)

    (In thousands)

                                 
      Three Months Ended   Nine Months Ended
      March 31,    December 31,   March 31, 
      2025   2024   2024   2025   2024
    Cash flows from operating activities:                            
    Net income (loss) $ (2,179 )   $ 289     $ (1,825 )   $ (1,939 )   $ 2,845  
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:                            
    Depletion, depreciation, and accretion   5,014       5,900       5,433       16,172       14,760  
    Stock-based compensation   642       549       659       1,860       1,585  
    Settlement of asset retirement obligations   (66 )     (19 )     (182 )     (346 )     (19 )
    Deferred income taxes   (2,101 )     766       252       (2,130 )     124  
    Unrealized (gain) loss on derivative contracts   3,926       1,063       1,368       3,426       1,063  
    Accrued settlements on derivative contracts   (57 )     94       9       (114 )     94  
    Other   (4 )     (3 )     (1 )     (7 )      
    Changes in operating assets and liabilities:                            
    Receivables from crude oil, natural gas, and natural gas liquids revenues   (26 )     (2,495 )     29       (34 )     (4,734 )
    Prepaid expenses and other current assets   965       (1,151 )     (1,494 )     1,400       (1,425 )
    Accounts payable, accrued liabilities, and other   1,149       (1,629 )     3,471       4,382       814  
    State and federal taxes payable                     (74 )     (365 )
    Net cash provided by operating activities   7,263       3,364       7,719       22,596       14,742  
    Cash flows from investing activities:                            
    Acquisition deposits   (1,800 )                 (1,800 )      
    Acquisition of oil and natural gas properties   (20 )     (43,788 )     (69 )     (351 )     (43,788 )
    Capital expenditures for oil and natural gas properties   (4,404 )     (2,648 )     (758 )     (7,902 )     (8,353 )
    Net cash used in investing activities   (6,224 )     (46,436 )     (827 )     (10,053 )     (52,141 )
    Cash flows from financing activities:                            
    Common stock dividends paid   (4,109 )     (4,003 )     (4,082 )     (12,224 )     (12,037 )
    Common stock repurchases, including stock surrendered for tax withholding   (71 )     (818 )     (103 )     (262 )     (1,031 )
    Borrowings under senior secured credit facility         42,500                   42,500  
    Repayments of senior secured credit facility   (4,000 )                 (4,000 )      
    Issuance of common stock   1,145             2,259       3,404        
    Offering costs   (70 )           (236 )     (306 )      
    Net cash provided by (used in) financing activities   (7,105 )     37,679       (2,162 )     (13,388 )     29,432  
    Net increase (decrease) in cash and cash equivalents   (6,066 )     (5,393 )     4,730       (845 )     (7,967 )
    Cash and cash equivalents, beginning of period   11,667       8,460       6,937       6,446       11,034  
    Cash and cash equivalents, end of period $ 5,601     $ 3,067     $ 11,667     $ 5,601     $ 3,067  
                                           

    Evolution Petroleum Corporation

    Non-GAAP Reconciliation – Adjusted EBITDA (Unaudited)

    (In thousands)

    Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures that are used as supplemental financial measures by our management and by external users of our financial statements, such as investors, commercial banks, and others, to assess our operating performance as compared to that of other companies in our industry, without regard to financing methods, capital structure, or historical costs basis. We use these measures to assess our ability to incur and service debt and fund capital expenditures. Our Adjusted EBITDA and Net income (loss) and earnings per share, excluding selected items, should not be considered alternatives to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA and Net income (loss) and earnings per share excluding selected items in the same manner.

    We define Adjusted EBITDA as net income (loss) plus interest expense, income tax expense (benefit), depreciation, depletion, and accretion (DD&A), stock-based compensation, ceiling test impairment, and other impairments, unrealized loss (gain) on change in fair value of derivatives, and other non-recurring or non-cash expense (income) items.

                                     
      Three Months Ended   Nine Months Ended
      March 31,    December 31,   March 31, 
      2025     2024   2024     2025     2024
    Net income (loss) $ (2,179 )   $ 289     $ (1,825 )   $ (1,939 )   $ 2,845  
    Adjusted by:                                
    Interest expense   705       518       764       2,292       584  
    Income tax expense (benefit)   (687 )     157       (711 )     (577 )     1,174  
    Depletion, depreciation, and accretion   5,014       5,900       5,433       16,172       14,760  
    Stock-based compensation   642       549       659       1,860       1,585  
    Unrealized loss (gain) on derivative contracts   3,926       1,063       1,368       3,426       1,063  
    Adjusted EBITDA $ 7,421     $ 8,476     $ 5,688     $ 21,234     $ 22,011  
                                           
    Evolution Petroleum Corporation

    Non-GAAP Reconciliation – Adjusted Net Income (Unaudited)

    (In thousands, except per share amounts)

           
      Three Months Ended   Nine Months Ended
      March 31,    December 31,   March 31, 
      2025   2024   2024   2025   2024
    As Reported:                            
    Net income (loss), as reported $ (2,179 )   $ 289     $ (1,825 )   $ (1,939 )   $ 2,845  
                                 
    Impact of Selected Items:                            
    Unrealized loss (gain) on commodity contracts   3,926       1,063       1,368       3,426       1,063  
    Selected items, before income taxes $ 3,926     $ 1,063     $ 1,368     $ 3,426     $ 1,063  
    Income tax effect of selected items(1)   941       374       384       786       311  
    Selected items, net of tax $ 2,985     $ 689     $ 984     $ 2,640     $ 752  
                                 
    As Adjusted:                            
    Net income (loss), excluding selected items(2) $ 806     $ 978     $ (841 )   $ 701     $ 3,597  
                                 
    Undistributed earnings allocated to unvested restricted stock   (96 )     (21 )     (100 )     (274 )     (73 )
    Net income (loss), excluding selected items for earnings per share calculation $ 710     $ 957     $ (941 )   $ 427     $ 3,524  
                                 
    Net income (loss) per common share — Basic, as reported $ (0.07 )   $ 0.01     $ (0.06 )   $ (0.07 )   $ 0.09  
    Impact of selected items   0.09       0.02       0.03       0.08       0.02  
    Net income (loss) per common share — Basic, excluding selected items(2) $ 0.02     $ 0.03     $ (0.03 )   $ 0.01     $ 0.11  
                                 
                                 
    Net income (loss) per common share — Diluted, as reported $ (0.07 )   $ 0.01     $ (0.06 )   $ (0.07 )   $ 0.08  
    Impact of selected items   0.09       0.02       0.03       0.08       0.03  
    Net income (loss) per common share — Diluted, excluding selected items(2)(3) $ 0.02     $ 0.03     $ (0.03 )   $ 0.01     $ 0.11  

    _____________________

    (1) The tax impact for the three months ended March 31, 2025 and 2024, is represented using estimated tax rates of 24.0% and 35.2%, respectively. The tax impact for the three months ended December 31, 2024, is represented using estimated tax rates of 28.0%. The tax impact for the nine months ended March 31, 2025 and 2024 is represented using estimated tax rates of 22.9% and 29.2%, respectively.
    (2) Net income (loss) and earnings per share excluding selected items are non-GAAP financial measures presented as supplemental financial measures to enable a user of the financial information to understand the impact of these items on reported results. These financial measures should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities, or any other measure of financial performance or liquidity presented in accordance with U.S. GAAP. Our Adjusted Net Income (Loss) and earnings per share may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted Net Income (Loss) and earnings per share in the same manner.
    (3) The impact of selected items for the three months ended March 31, 2025, and 2024, were each calculated based upon weighted average diluted shares of 33.6 million and 32.9 million, respectively, due to the net income (loss), excluding selected items. The impact of selected items for the three months ended December 31, 2024, was calculated based upon weighted average diluted shares of 32.9 million due to the net income (loss), excluding selected items. The impact of selected items for the nine months ended March 31, 2025, and 2024, was each calculated based upon weighted average diluted shares of 33.2 million and 32.9 million, respectively, due to the net income (loss), excluding selected items.
       
    Evolution Petroleum Corporation

    Supplemental Information on Oil and Natural Gas Operations (Unaudited)

    (In thousands, except per unit and per BOE amounts)

                                           
      Three Months Ended   Nine Months Ended
      March 31,    December 31,   March 31, 
      2025   2024   2024   2025   2024
    Revenues:                                      
    Crude oil $ 11,769     $ 14,538     $ 11,763     $ 38,269     $ 38,913  
    Natural gas   7,790       5,860       5,793       17,868       17,943  
    Natural gas liquids   3,002       2,627       2,719       8,595       7,794  
    Total revenues $ 22,561     $ 23,025     $ 20,275     $ 64,732     $ 64,650  
                                           
    Lease operating costs:                                      
    Ad valorem and production taxes $ 1,473     $ 1,459     $ 1,441     $ 4,328     $ 4,009  
    Gathering, transportation, and other costs   2,913       2,527       2,889       8,592       6,926  
    Other lease operating costs   9,002       8,638       8,463       25,051       25,930  
    Total lease operating costs $ 13,388     $ 12,624     $ 12,793     $ 37,971     $ 36,865  
                                           
    Depletion of full cost proved oil and natural gas properties $ 4,607     $ 5,532     $ 5,024     $ 14,956     $ 13,680  
                                           
    Production:                                      
    Crude oil (MBBL)   172       199       179       555       519  
    Natural gas (MMCF)   2,011       2,115       2,125       6,364       6,091  
    Natural gas liquids (MBBL)   93       104       105       311       295  
    Equivalent (MBOE)(1)   600       656       638       1,927       1,829  
    Average daily production (BOEPD)(1)   6,667       7,209       6,935       7,033       6,651  
                                           
    Crude oil (BBL) $ 68.42     $ 73.06     $ 65.72     $ 68.95     $ 74.98  
    Natural gas (MCF)   3.87       2.77       2.73       2.81       2.95  
    Natural Gas Liquids (BBL)   32.28       25.26       25.90       27.64       26.42  
    Equivalent (BOE)(1) $ 37.60     $ 35.10     $ 31.78     $ 33.59     $ 35.35  
                                           
    Average cost per unit:                                      
    Ad valorem and production taxes $ 2.46     $ 2.22     $ 2.26     $ 2.25     $ 2.19  
    Gathering, transportation, and other costs   4.86       3.85       4.53       4.46       3.79  
    Other lease operating costs   15.00       13.17       13.26       13.00       14.18  
    Total lease operating costs $ 22.32     $ 19.24     $ 20.05     $ 19.71     $ 20.16  
                                           
    Depletion of full cost proved oil and natural gas properties $ 7.68     $ 8.43     $ 7.87     $ 7.76     $ 7.48  

    _____________________

    (1) Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio, which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.
    (2) Amounts exclude the impact of cash paid or received on the settlement of derivative contracts since we did not elect to apply hedge accounting.
       
    Evolution Petroleum Corporation

    Summary of Production Volumes and Average Sales Price (Unaudited)

       
      Three Months Ended
      March 31,    December 31,
      2025   2024   2024
      Volume   Price   Volume   Price   Volume   Price
    Production:                                              
    Crude oil (MBBL)                                              
    SCOOP/STACK   28     $ 71.36       30     $ 78.71       35     $ 70.52  
    Chaveroo Field   8       56.78       15       76.39       9       67.55  
    Jonah Field   7       67.69       8       72.25       7       64.54  
    Williston Basin   34       64.35       35       70.29       30       64.64  
    Barnett Shale   3       68.03       3       73.05       2       65.99  
    Hamilton Dome Field   34       58.88       35       61.21       35       57.53  
    Delhi Field   58       76.04       73       77.08       60       68.66  
    Other                           1       71.61  
    Total   172     $ 68.42       199     $ 73.06       179     $ 65.72  
    Natural gas (MMCF)                                              
    SCOOP/STACK   317     $ 4.91       214     $ 2.11       314     $ 2.89  
    Chaveroo Field               7       2.29              
    Jonah Field   758       4.02       843       3.94       803       3.21  
    Williston Basin   32       3.89       20       1.36       18       1.41  
    Barnett Shale   904       3.39       1,031       1.98       990       2.31  
    Total   2,011     $ 3.87       2,115     $ 2.77       2,125     $ 2.73  
    Natural gas liquids (MBBL)                                              
    SCOOP/STACK   13     $ 27.84       10     $ 25.14       18     $ 21.34  
    Chaveroo Field               1       22.86              
    Jonah Field   8       32.14       9       31.93       9       30.08  
    Williston Basin   8       23.74       4       23.96       2       17.86  
    Barnett Shale   49       33.48       59       22.85       57       25.86  
    Delhi Field   15       37.20       20       30.48       19       29.13  
    Other               1       25.87              
    Total   93     $ 32.28       104     $ 25.26       105     $ 25.90  
                                                   
    Equivalent (MBOE)(1)                                              
    SCOOP/STACK   94     $ 41.90       76     $ 40.56       105     $ 35.48  
    Chaveroo Field   8       56.78       17       68.40       9       67.55  
    Jonah Field   141       26.63       158       26.72       150       22.14  
    Williston Basin   47       53.08       42       61.15       35       57.00  
    Barnett Shale   203       24.13       234       15.41       224       17.29  
    Hamilton Dome Field   34       58.88       35       61.21       35       57.53  
    Delhi Field   73       68.19       93       67.21       79       59.37  
    Other               1       25.87       1       71.61  
    Total   600     $ 37.60       656     $ 35.10       638     $ 31.78  
                                                   
    Average daily production (BOEPD)(1)                                              
    SCOOP/STACK   1,044               835               1,141          
    Chaveroo Field   89               187               98          
    Jonah Field   1,567               1,736               1,630          
    Williston Basin   522               462               380          
    Barnett Shale   2,256               2,571               2,435          
    Hamilton Dome Field   378               385               380          
    Delhi Field   811               1,022               859          
    Other                 11               12          
    Total   6,667               7,209               6,935          

    _____________________

    (1) Equivalent oil reserves are defined as six MCF of natural gas and 42 gallons of NGLs to one barrel of oil conversion ratio, which reflects energy equivalence and not price equivalence. Natural gas prices per MCF and NGL prices per barrel often differ significantly from the equivalent amount of oil.
       
    Evolution Petroleum Corporation

    Summary of Average Production Costs (Unaudited)

       
      Three Months Ended
      March 31,    December 31,
      2025   2024   2024
      Amount   Price   Amount   Price   Amount   Price
    Production costs (in thousands, except per BOE):                                              
    Lease operating costs                                              
    SCOOP/STACK $ 1,106     $ 11.74     $ 619     $ 8.18     $ 1,050     $ 9.97  
    Chaveroo Field   128       15.77       161       9.12       122       12.92  
    Jonah Field   2,184       15.51       2,313       14.63       2,196       14.62  
    Williston Basin   1,476       31.45       1,413       33.69       1,190       34.12  
    Barnett Shale   3,739       18.47       3,767       16.07       4,030       18.03  
    Hamilton Dome Field   1,237       36.36       1,566       45.34       1,188       34.18  
    Delhi Field   3,518       48.04       2,785       30.19       3,017       38.15  
    Total $ 13,388     $ 22.32     $ 12,624     $ 19.24     $ 12,793     $ 20.05  
                                                   

    Evolution Petroleum Corporation

    Summary of Open Derivative Contracts (Unaudited)

    For more information on the Company’s hedging practices, see Note 7 to its financial statements included on Form 10-Q filed with the SEC for the quarter ended March 31, 2025.
    The Company had the following open crude oil and natural gas derivative contracts as of May 12, 2025:

                                           
                Volumes in     Swap Price per   Floor Price per   Ceiling Price per
    Period   Commodity   Instrument   MMBTU/BBL     MMBTU/BBL   MMBTU/BBL   MMBTU/BBL
    April 2025 – June 2025   Crude Oil   Fixed-Price Swap   25,571     $ 73.49                  
    April 2025 – June 2025   Crude Oil   Collar   41,601             $ 65.00     $ 84.00  
    April 2025 – December 2025   Crude Oil   Fixed-Price Swap   32,229       72.00                  
    July 2025 – December 2025   Crude Oil   Fixed-Price Swap   81,335       71.40                  
    January 2026 – March 2026   Crude Oil   Collar   43,493               60.00       75.80  
    April 2026 – June 2026   Crude Oil   Fixed-Price Swap   17,106       60.40                  
    April 2025 – December 2025   Natural Gas   Collar   681,271               4.00       4.95  
    April 2025 – December 2026   Natural Gas   Fixed-Price Swap   3,010,069       3.60                  
    January 2026 – March 2026   Natural Gas   Collar   375,481               3.60       5.00  
    January 2026 – March 2026   Natural Gas   Collar   213,251               4.00       5.39  
    April 2025 – December 2027   Natural Gas   Fixed-Price Swap   3,729,540       3.57                  
    April 2026 – October 2026   Natural Gas   Collar   433,428               3.50       4.55  
                                           

    This press release was published by a CLEAR® Verified individual.

    The MIL Network

  • MIL-OSI USA: Tuberville Introduces Legislation to Help Disabled Veterans

    US Senate News:

    Source: United States Senator for Alabama Tommy Tuberville
    WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) introduced the Automotive Support Services to Improved Safe Transportation (ASSIST) Act, which would help disabled veterans make the vehicle modifications they need to travel safely by giving the VA greater flexibility to offer financial assistance for a wider range of necessary adaptations.
    “We take things like driving or riding in a vehicle for granted, but for some veterans, operating a vehicle can be challenging without the proper modifications,” said Senator Tuberville.“Alabama is home to more than 400,000 veterans, and we want to ensure that each of them has the necessary resources to lead safe, independent lives. The ASSIST Act is a commonsense piece of legislation that would give veterans access to needed vehicle modifications such as ramps and device lifts. I’m proud to lead the ASSIST Act in the Senate and will continue fighting to help the heroes who have sacrificed so much for us.”BACKGROUND:As Alabama’s voice on the Senate Veterans’ Affairs Committee, the ASSIST Act follows a series of bills Senator Tuberville has introduced to make small, yet meaningful changes to how the VA delivers care and benefits to veterans. Last week, the House Committee on Veterans’ Affairs passed the ASSIST Act unanimously out of committee.
    Currently, the VA is restricted to funding only a limited list of adaptive equipment, such as wheelchair tie-downs, van lifts, and raised roofs. This unintentionally limits, and in many cases prevents all together, some veterans from being able to make necessary modifications to their vehicles such as ramp and kneeling systems, mobility device lifts, and ingress or egress accessibility modifications. The ASSIST Act fixes this gap in assistance and would help ensure veterans are able to continue traveling safely and freely. 
    MORE:
    Tuberville, VA Secretary Doug Collins Discuss Streamlining Processes to Improve Outcomes for Veterans
    Tuberville, Lee Introduce Legislation to Repurpose Woke USAID Funding to Improve Veterans’ Homes
    Tuberville, Boozman Introduce Legislation to Support Defrauded Veterans
    Tuberville Reintroduces Legislation to Expand Treatment Options for Veterans
    Tuberville Introduces Legislation to Ensure Community Care Access for Veterans
    Tuberville, Moran Introduce Legislation to Improve Access to Care for Veterans
    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.

    MIL OSI USA News