On June 5, 2024, MVM Energy Private LLC (MVM) announced its intention to acquire a 5% stake in Shah Deniz, one of the largest global offshore gas and condensate fields in Azerbaijan. The transaction will moderately increase the group?s country risk exposure, because we see Azerbaijan, where initially 10% of operations takes place, as a higher-risk country than Hungary. We forecast net debt to remain broadly the same in 2024, at about Hungarian forint (HUF) 1.5 trillion compared with HUF1.6 trillion at year-end 2023 because the acquisition is debt-financed, but cash flow of HUF50 billion-HUF80 billion from Shah Deniz will offset higher debt. We therefore forecast funds from operations (FFO) to debt to remain above 30% for the next two-to-three
