125

2021 INTEGRATED MANAGEMENT REPORT

Adjusted EBITDA 2021 2020

Exploration & Production 905 458

Refining 93 10

Commercial 478 400

Chemical 461 357

Corporation (121) (39)

Adjusted EBITDA 1,815 1,187

Exploration & Production 144 (74)

Refining (180) (271)

Commercial 225 169

Chemical 309 205

Corporation (187) (27)

Adjusted NIAT attributable to parent company 310 1

The Refining business, which in the previous year was significantly impacted by extremely low margins, even reaching negative levels, has improved, driven by higher margins and business volumes, which were dragged down in 2020 by the fall in demand. The Exploration and Production business was also boosted by high oil prices, EBITDA having risen 97%.

The Commercial and Chemicals segments improved their results compared to 2020, although to a lesser extent than the other two segments, as these activities were less affected by the COVID-19 crisis. The Marketing segment increased sales due to higher demand following the lifting of mobility restrictions and improved margins thanks to the efficiency measures implemented in the Group's production processes. The Chemicals segment s EBITDA rose 29% due primarily to the good performance of the LAB and Phenol lines.

In addition, management delivered further positive results from the optimization and efficiency program aimed at improving gross margin, capturing sustainable cost efficiencies, and rationalizing capex. This program has had an impact of more than 450m in 2021.

The Group's adjusted EBITDA rose considerably up to 1,815 million or 53% on the previous year.

Similarly, the Group's IFRS EBITDA amounted to 2,194 million, 253% higher than in 2020, after adjusting for the difference between the measurement of inventories at replacement cost and at average unit cost (AUC) and including non-recurring items (see section 5.2.B).

Adjusted Net Profit for the year totalled 310 million after rising by 309 million compared to 2020, while IFRS Net Profit for the year was 661 million against a loss of 919 million in 2020.

The segment breakdown of adjusted EBITDA and Profit/(loss) is as follows:

Million