Table of Contents
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN
ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of May 2014
Eni S.p.A.
(Exact name of Registrant as specified in its
charter)
Piazzale Enrico
Mattei 1 - 00144 Rome, Italy
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F x Form 40-F o
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2b under the Securities Exchange Act of 1934.)
Yes o No x
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): )
Table of Contents
Press Release dated May 2, 2014
Press Release dated May 7, 2014
Press Release dated May 7, 2014
Summary annual review (Eni in 2013)
Press Release dated May 8, 2014
Press Release dated May 9, 2014
Ordinary and Extraordinary Shareholders’ Meeting Resolutions
Press Release dated May 15, 2014
Press Release dated May 23, 2014
Press Release dated May 28, 2014
Press Release dated May 28, 2014
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorised.
| Eni S.p.A. |
||||
| Name: Antonio Cristodoro | ||||
| Title: | Head of Corporate Secretary's Staff Office | |||
Date: May 31, 2014
Table of Contents
Eni makes a new offshore oil and gas discovery in the Norwegian Barents Sea
San Donato Milanese (Milan), May 2, 2014 - Eni has made a new offshore oil and gas discovery in the Norwegian Barents Sea, approximately 230 km from Hammerfest.
The well 7220/7-3S is located 6 kilometers south of the Johan Castberg area on the Drivis Prospect in the PL532 license. It was drilled in approximately 345 meters of water and reached a total depth of 2,097 meters.
The well has confirmed a hydrocarbon column of about 154
meters in Jurassic sandstone.
Oil Volumes in place are estimated at between 125 million and 140
million barrels. The discovery is part of Eni’s joint
venture exploration activity to develop the Johan Castberg field.
Statoil is the operator of production license PL532 with a 50% stake; the remaining shares are held by Eni Norge AS (30%) and Petoro AS (20%).
Eni has been present in Norway since 1965, with current production standing at approximately 115,000 boe per day through its subsidiary Eni Norge AS. Eni is operator of the ongoing development of the first oil field in the Barents Sea, the important Goliat discovery, and of the Marulk gas field in the Norwegian Sea. Furthermore, in Norway Eni has interests in the country in a number of exploration licenses and fields under development and in operations including Ekofisk, Norne, Åsgard, Heidrun, Kristin, Mikkel and Urd.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +800 11 22 34 56
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
Table of Contents
Eni signs agreements for the
sale of Refining & Marketing activities
in the Czech Republic, Slovakia and Romania to MOL Group
San Donato Milanese (Milan), May 7, 2014 - Today, Eni signed in Budapest an agreement with MOL Group, a Hungarian oil & gas company, for the sale of its 32.445% stake in Ceská Rafinérská as (CRC), a refining company in the Czech Republic. The transfer is subject to the preemption right on the part of the other partner in CRC, Unipetrol, which will be able to purchase the share under the conditions agreed with MOL.
On the same day, Eni signed further agreements for the sale of its subsidiaries Eni Ceská Republika, Eni Slovensko and Eni Romania to MOL Group. These subsidiaries operates in the Refining & Marketing business, with activities in Czech Republic, Slovakia and Romania respectively.
The completion of these agreements is subject to certain conditions, including prior approval by the competent antitrust authorities.
Eni will remain active in all three countries through the wholesale marketing of lubricants.
These agreements are a further step towards a reduction of the refining exposure and to a recovery of the profitability in the Refining & Marketing sector. With the transfer of the share in CRC, Eni decreases its refining capacity by 7% which adds to the 13% of reduction applied in 2013.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +800 11 22 34 56
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
Table of Contents
Eni: Report on the purchase of treasury shares
San Donato Milanese (Milan), May 7, 2014 - During the period from April 28 to April 30, 2014, Eni acquired No. 425,000 shares for a total consideration of euro 7,914,038.79, within the authorization to purchase treasury shares approved at Eni’s Ordinary General Meeting of shareholders on May 10, 2013, previously subject to disclosure pursuant to Article 144-bis of Consob Regulation 11971/1999.
The following are details of transactions for the purchase of treasury shares on the Electronic Stock Market on a daily basis:
Date |
Number of ordinary shares purchased |
Average price (euro) |
Consideration (euro) |
28/04/2014 |
140,000 |
18.3987 |
2,575,811.57 |
29/04/2014 |
140,000 |
18.7106 |
2,619,484.45 |
30/04/2014 |
145,000 |
18.7500 |
2,718,742.77 |
Total |
425,000 |
18.6213 |
7,914,038.79 |
Following the purchases announced today, considering the treasury shares already held, on May 2, 2014 Eni holds No. 22,388,287 shares equal to 0.62% of the share capital.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +800 11 22 34 56
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
Table of Contents
Contents
Table of Contents
Contents
Table of Contents
Contents
Table of Contents
| Fact Book 2013 | ||||||||||
| Contents | Eni’s Fact Book is a
supplement to Eni’s Annual Report and is designed to
provide supplemental financial and operating information. It contains certain forward-looking statements in particular under the section "Outlook" regarding capital expenditure, development and management of oil and gas resources, dividends, buyback program, allocation of future cash flow from operations, future operating performance, gearing, targets of production and sale growth, new markets, and the progress and timing of projects. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors, including the timing of bringing new fields on stream; management’s ability in carrying out industrial plans and in succeeding in commercial transactions; future levels of industry product supply; demand and pricing; operational problems; general economic conditions; geopolitical factors including international tensions, social and political instability, changes in the economic and legal frameworks in Eni’s Countries of operations, regulation of the oil & gas industry, power generation and environmental field, development and use of new technologies; changes in public expectations and other changes in business conditions; the actions of competitors. |
|||||||||
 |
Eni at a glance | 4 | ||||||||
 |
Eni’s business model | 10 | ||||||||
 |
Exploration & Production | 14 | ||||||||
 |
Gas & Power | 41 | ||||||||
 |
Refining & Marketing | 49 | ||||||||
 |
Versalis | 59 | ||||||||
 |
Engineering & Construction | 63 | ||||||||
| Tables | ||||||||||
| Financial Data | 69 | |||||||||
| Employees | 84 | |||||||||
| Supplemental oil and gas information | 85 | |||||||||
| Quarterly information | 104 | |||||||||
Contents
Eni Fact Book Eni at a glance
Eni at a glance |
| Eni is an integrated company engaged in all the energy supply chain. Eni’s strong presence in the gas market, our operations in LNG, our skills in the power generation and refinery activities, | strengthened by world class skills in engineering and project management, allow us to catch opportunities in the market and to realize integrated projects. |
| upstream |
mid-downstream |
|
|
||
| In 2013 Eni achieved solid
results in a particularly difficult market. Despite
problems in Libya, Nigeria and Algeria the E&P
Division confirmed its capability to deliver high profits
and cash flow thanks to its cost leadership and
extraordinary exploration successes. The Mid and
Downstream businesses, while at a disadvantage from the
Italian and European crisis, strengthened their
restructuring actions achieving a significant improvement
in cash generation of approximately euro 2 billion. The
portfolio rationalization permitted by the new
discoveries has allowed an anticipated monetization of
results and cash. The overall effect of what we did
enabled us to deliver an increased net profit amounting
to euro 5.16 billion, up by 23% compared to 2012, to pay
a generous dividend and to launch a buyback program,
while maintaining a constant debt of euro 15.43 billion. Net cash generated by operating activities of euro 10.97 billion and proceeds from disposals of euro 6.36 billion, related in particular |
to the Mozambique project,
allowed us to fund completely cash outflows relating to
capital expenditure of euro 12.75 billion and Eni’s
dividend payments of euro 3.95 billion. At December 31,
2013, leverage was 0.25, unchanged from 2012. In 2013 Eni continued to implement the communication and training program "Eni in safety", with 185 workshops dedicated to Eni’s employees. The benefit of this and other programs in safety is confirmed by the positive trend of the injury frequency rate relating to employees and contractors which improved for the ninth consecutive year (down by 28.7% from 2012). Notwithstanding the 10.5% decrease in the fatality index, six fatal accidents occurred in 2013. |
- 4 -
Contents
Eni Fact Book Eni at a glance
 |
Exploration & Production Adjusted net profit was euro 5.95 billion, down by 19.8% from 2012, due to a lower operating performance. Liquids and gas production amounted to 1,619 kboe/d, down by 4.8%, impacted by geopolitical factors. Solid cash flow at $30 per barrel. As of December 31, 2013 Eni’s net proved oil and gas reserves amounted to 6.54 bboe. The organic reserve replacement ratio was 105% on a comparable basis. The reserve life index is 11.1 years. |
 |
Refining
& Marketing Adjusted net loss was euro 232 million, affected by plummeting refining margin due to lower demand for refined products, overcapacity and competitive pressure. In 2013, Eni’s average retail market share in Italy was 27.5%. |
|||
 |
Versalis Adjusted net loss was euro 338 million, which reflected the continuous weakness in demand and margins. Production volumes were 5,817 ktonnes, decreasing by 4.5%. |
|||||
 |
Gas
& Power In 2013, the Gas & Power Division reported an adjusted operating loss of euro 246 million, with a decrease of euro 719 million reflecting raising competitive pressure with plummeting sale prices and margins in Italy, which effects were exacerbated by minimum off-take obligations provided by long-term supply contracts. Benefit from supply portfolio renegotiation amounted to euro 1.4 billion. Gas sales were 93.17 bcm with reduction in the main markets, driven by lower demand and increasing competition. |
 |
Engineering & Construction Adjusted net loss amounted to euro 253 million due to marketing and operating difficulties and slowdown in acquiring of new orders in onshore and offshore construction business. Orders acquired were euro 10,653 million; order backlog amounted to euro 17,541 million. |
Eni’s strategy
| The 2013 results were achieved in a scenario of increased political instability in certain Countries with Eni’s presence in upstream and difficult conditions in the European midstream and downstream markets, particularly in Italy, affected by demand downturn in the challenging competitive environment characterized by lack of profitability. In order to tackle with this scenario, management has
planned a number of actions that are intended to help the
Company to achieve robust performances, against cautious
assumptions about the external context whereby we do not
anticipate any meaningful improvement in market
conditions and have projected flat production profiles in
the Company’s main Countries at risk of political
instability (Libya, Nigeria and Algeria).
|
|||
|
In Exploration
& Production, Eni confirms its strategy of
organic growth by applying its consolidated development
model characterized by Eni’s presence in the
conventional projects of large dimension as well as
efficient structure of development costs, leveraging on
significant exploration successes which are proved to be
efficient and effective way to achieve the growth of
resource base, a driver for production growth/portfolio
diversification as well as a vehicle to cash generation
by means of discoveries monetization. The Plan’s targets are: • robust cash generation from operations up on average by 5% on an annual basis; • production growth at a rate of 3% in the 2014-2017 period, supported by the development of core areas (including Sub-Saharan Africa, Venezuela, Barents Sea, Kazakhstan) coupled with rebalanced risk profile of our portfolio; • increase of our resource base, up by 3.2 billion boe in the four-year period, which are planned to be achieved through a capital expenditure plan 5% lower than the previous one. |
 |
|
- 5 -
Contents
Eni Fact Book Eni at a glance
|
In the Gas
& Power Division,
Eni expects to achieve an increase in cash generation and
to restore profitability leveraging on: • restructuring of our supply portfolio, in order to reach price alignment with the new market conditions and to minimize the impact of take-or-pay risks on future cash flows through a new round of negotiations or arbitrations; • focus on high value added businesses, such as LNG, through integration with upstream segment and increasing sales in premium markets, particularly in Far East, on trading activities, through the enhancement of the physical and contractual assets in portfolio, as well as the development of our retail customer base; • the re-engineering of B2B business by means of commercial offers of innovative products for our customers, efficiency actions and integration with the skills of trading unit; • process re-engineering and cost cutting in our operations. Management expects that these turnaround drivers will help the Company to restore profitability by 2015 and generate approximately euro 1.2 billion of adjusted proforma EBITDA in 2017. |
 |
|
|
In Refining
& Marketing, Eni intends to restore
profitability despite of the continuous worsening of the
scenario, which in 2013 saw the fall of the refining
margins to an unprecedented level. In the refining activities, gradual recovery will be supported by: • the projects of rationalizations and processes reconversion, resulting in a 22% cut of existing refining capacity during the four-year period; • higher flexibility, process integration, as well as • efficiency improvement and energy saving projects. In marketing operations, management intends to strengthen Eni’s presence in the retail fuels market by means of: • achievement of higher efficiency results; • development of non-oil operations; and • enhancement of LPG and methane distribution. In the wholesale business, Eni intends to capture opportunities deriving from the closing of third-parties’ refineries, in order to safeguard its position. Finally, Eni will launch innovative activities such as the development of new products (LNG in automotive segment) and innovative services (smart mobility). Based on these initiatives, in the 2014-2017 four-year period Eni expects to increase its adjusted EBIT under constant scenario assumptions for refining and marketing (base 2013) of more than euro 0.7 billion. |
 |
|
|
In the Chemical
sector, in order to mitigate the impacts of the negative
scenario, Eni confirms its strategy of: • optimization/rationalization of productive capacity, with an objective to achieve more adequate and efficient cost position to refocus on products with higher added value; • development of new supply chains in the field of green chemistry characterized by lower environmental impact and high demand growth rate; as well as • internationalization of business to serve consumers even more global and markets features with high growth demand rate and also through strategic alliances signed with important international players. |
 |
|
|
In the Engineering & Construction segment, the difficulties incurred in certain projects, mainly in the E&C Onshore and Offshore segments, affected severely the business profitability in 2013. Despite this, the sector expects to recover its profitability already in 2014 and to improve gradually marginality in the following years leveraging on the completion of low-margins contracts still present in the current portfolio, effective commercial discipline and investment activities recently completed. These actions will strengthen Saipem’s business model in strategic areas and in strategic markets (projects of large dimension and with high technological complexity, in adverse environmental conditions). |  |
- 6 -
Contents
Eni Fact Book Eni at a glance
Main data
Key financial data (a) |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 (b) |
2013 |
| Net sales from operations | 57,498 | 73,692 | 86,071 | 87,204 | 108,082 | 83,227 | 98,523 | 109,589 | 128,592 | 114,722 | |||||||||||||||||||||
| of which: continuing operations | 106,978 | 81,932 | 96,617 | 107,690 | 127,220 | 114,722 | |||||||||||||||||||||||||
| Group operating profit | 12,399 | 16,664 | 19,336 | 18,739 | 18,517 | 12,055 | 16,111 | 17,435 | 15,962 | 8,856 | |||||||||||||||||||||
| Special items | (448 | ) | (1,210 | ) | 88 | (620 | ) | 2,034 | 1,295 | 2,290 | 1,567 | 4,795 | 3,046 | ||||||||||||||||||
| Profit (loss) on stock | 631 | 1,942 | 1,059 | 885 | 936 | (345 | ) | (881 | ) | (1,113 | ) | (17 | ) | 716 | |||||||||||||||||
| Group adjusted operating profit | 12,582 | 17,396 | 20,483 | 19,004 | 21,487 | 13,005 | 17,520 | 17,889 | 20,740 | 12,618 | |||||||||||||||||||||
| Adjusted operating profit - continuing operations | 21,322 | 12,722 | 16,845 | 17,230 | 19,798 | 12,618 | |||||||||||||||||||||||||
| Exploration & Production | 8,202 | 12,649 | 15,521 | 13,770 | 17,166 | 9,489 | 13,898 | 16,075 | 18,537 | 14,646 | |||||||||||||||||||||
| Gas & Power | 3,448 | 3,783 | 4,117 | 4,414 | 1,778 | 2,022 | 1,268 | (247 | ) | 356 | (663 | ) | |||||||||||||||||||
| Refining & Marketing | 923 | 1,210 | 794 | 292 | 555 | (381 | ) | (181 | ) | (539 | ) | (321 | ) | (482 | ) | ||||||||||||||||
| Versalis | 263 | 261 | 219 | 116 | (382 | ) | (441 | ) | (96 | ) | (273 | ) | (483 | ) | (386 | ) | |||||||||||||||
| Engineering & Construction | 215 | 314 | 508 | 840 | 1,041 | 1,120 | 1,326 | 1,443 | 1,474 | (84 | ) | ||||||||||||||||||||
| Other activities | (223 | ) | (296 | ) | (299 | ) | (207 | ) | (244 | ) | (258 | ) | (205 | ) | (226 | ) | (222 | ) | (210 | ) | |||||||||||
| Corporate and financial companies | (187 | ) | (384 | ) | (244 | ) | (195 | ) | (282 | ) | (342 | ) | (265 | ) | (266 | ) | (325 | ) | (332 | ) | |||||||||||
| Impact of unrealized intragroup profit elimination and consolidation adjustments | (59 | ) | (141 | ) | (133 | ) | (26 | ) | 1,690 | 1,513 | 1,100 | 1,263 | 782 | 129 | |||||||||||||||||
| Adjusted operating profit - discontinued operations | 165 | 283 | 675 | 659 | 942 | ||||||||||||||||||||||||||
| Group net profit | 7,059 | 8,788 | 9,217 | 10,011 | 8,825 | 4,367 | 6,318 | 6,860 | 7,790 | 5,160 | |||||||||||||||||||||
| of which: continuing operations | 8,996 | 4,488 | 6,252 | 6,902 | 4,200 | 5,160 | |||||||||||||||||||||||||
| of which: discontinued operations | (171 | ) | (121 | ) | 66 | (42 | ) | 3,590 | |||||||||||||||||||||||
| Group adjusted net profit | 6,645 | 9,251 | 10,401 | 9,569 | 10,164 | 5,207 | 6,869 | 6,969 | 7,325 | 4,433 | |||||||||||||||||||||
| of which: continuing operations | 10,315 | 5,321 | 6,770 | 6,938 | 7,130 | 4,433 | |||||||||||||||||||||||||
| of which: discontinued operations | (151 | ) | (114 | ) | 99 | 31 | 195 | ||||||||||||||||||||||||
| Net cash provided by operating activities | 12,500 | 14,936 | 17,001 | 15,517 | 21,801 | 11,136 | 14,694 | 14,382 | 12,371 | 10,969 | |||||||||||||||||||||
| of which: continuing operations | 21,506 | 10,755 | 14,140 | 13,763 | 12,356 | 10,969 | |||||||||||||||||||||||||
| of which: discontinued operations | 295 | 381 | 554 | 619 | 15 | ||||||||||||||||||||||||||
| Capital expenditure | 7,499 | 7,414 | 7,833 | 10,593 | 14,562 | 13,695 | 13,870 | 13,438 | 13,517 | 12,750 | |||||||||||||||||||||
| of which: continuing operations | 12,935 | 12,216 | 12,450 | 11,909 | 12,761 | 12,750 | |||||||||||||||||||||||||
| of which: discontinued operations | 1,627 | 1,479 | 1,420 | 1,529 | 756 | ||||||||||||||||||||||||||
| Shareholders’ equity including non-controlling interests | 35,540 | 39,217 | 41,199 | 42,867 | 48,510 | 50,051 | 55,728 | 60,393 | 62,558 | 61,174 | |||||||||||||||||||||
| Net borrowings | 10,443 | 10,475 | 6,767 | 16,327 | 18,376 | 23,055 | 26,119 | 28,032 | 15,511 | 15,428 | |||||||||||||||||||||
| Leverage | 0.29 | 0.27 | 0.16 | 0.38 | 0.38 | 0.46 | 0.47 | 0.46 | 0.25 | 0.25 | |||||||||||||||||||||
| Net capital employed | 45,983 | 49,692 | 47,966 | 59,194 | 66,886 | 73,106 | 81,847 | 88,425 | 78,069 | 76,602 | |||||||||||||||||||||
| Exploration & Production | 16,770 | 19,109 | 17,783 | 23,826 | 31,362 | 32,455 | 37,646 | 42,024 | 42,394 | 45,721 | |||||||||||||||||||||
| Gas & Power | 19,554 | 20,075 | 19,713 | 21,333 | 9,636 | 11,024 | 12,931 | 12,367 | 11,124 | 9,735 | |||||||||||||||||||||
| Snam | 11,918 | 13,730 | 14,415 | 15,393 | |||||||||||||||||||||||||||
| Refining & Marketing | 5,081 | 5,993 | 5,631 | 7,675 | 7,379 | 8,105 | 8,321 | 9,188 | 8,846 | 7,969 | |||||||||||||||||||||
| Versalis | 2,076 | 2,018 | 1,953 | 2,228 | 1,915 | 1,774 | 1,978 | 2,252 | 2,557 | 2,656 | |||||||||||||||||||||
| Engineering & Construction | 2,403 | 2,844 | 3,399 | 4,313 | 5,022 | 6,566 | 7,610 | 8,217 | 9,992 | 9,616 | |||||||||||||||||||||
| Corporate financial companies and other activities | 277 | 2 | (95 | ) | 294 | 24 | (192 | ) | (527 | ) | (393 | ) | 3,659 | 1,382 | |||||||||||||||||
| Impact of unrealized intragroup profit elimination | (178 | ) | (349 | ) | (418 | ) | (475 | ) | (370 | ) | (356 | ) | (527 | ) | (623 | ) | (503 | ) | (477 | ) | |||||||||||
| (a)
Following the divestment of Regulated Businesses in
Italy, results of Snam have been accounted as
"discontinued operations". Results for the
2008-2011 period have been restated accordingly. (b) 2012 figures have been restated following the adoption of the International Accounting Standard (IAS) 19 "Employees benefits", effective since January 1, 2013. |
Key market indicators |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
| Average price of Brent dated crude oil (a) | 38.22 | 54.38 | 65.14 | 72.52 | 96.99 | 61.51 | 79.47 | 111.27 | 111.58 | 108.66 | ||||||||||||
| Average EUR/USD exchange rate (b) | 1.244 | 1.244 | 1.256 | 1.371 | 1.471 | 1.393 | 1.327 | 1.392 | 1.285 | 1.328 | ||||||||||||
| Average price in euro of Brent dated crude oil | 30.72 | 43.71 | 51.86 | 52.90 | 65.93 | 44.16 | 59.89 | 79.94 | 86.83 | 81.82 | ||||||||||||
| Average European refining margin (c) | 4.35 | 5.78 | 3.79 | 4.52 | 6.49 | 3.13 | 2.66 | 2.06 | 4.83 | 2.64 | ||||||||||||
| Average European refining margin Brent/Ural (c) | 7.03 | 8.33 | 6.50 | 6.45 | 8.85 | 3.56 | 3.47 | 2.90 | 4.94 | 2.60 | ||||||||||||
| Euribor - three-month euro rate | (%) | 2.1 | 2.2 | 3.1 | 4.3 | 4.6 | 1.2 | 0.8 | 1.4 | 0.6 | 0.2 | |||||||||||
| (a) In US dollars per barrel. Source:
Platt’s Oilgram. (b) Source: ECB. (c) In US dollars per barrel FOB Mediterranean Brent dated crude oil. Source: Eni calculations based on Platt’s Oilgram data. |
- 7 -
Contents
| Eni Fact Book Eni at a glance |
Selected operating data |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
| Corporate (a) | ||||||||||||||||||||||
| Employees at period end | (number) | 71,572 | 71,773 | 72,850 | 75,125 | 71,714 | 71,461 | 73,768 | 72,574 | 77,838 | 82,289 | |||||||||||
| of which: - women | 10,326 | 10,620 | 10,841 | 10,977 | 11,611 | 11,955 | 12,161 | 12,542 | 12,860 | 13,601 | ||||||||||||
| of which: - outside Italy | 32,691 | 34,036 | 35,818 | 38,634 | 41,971 | 42,633 | 45,967 | 45,516 | 51,034 | 55,507 | ||||||||||||
| Female managers | (%) | 12.5 | 12.4 | 13.5 | 14.1 | 16.3 | 17.3 | 18.0 | 18.5 | 18.9 | 19.4 |
| Employees injury frequency rate | (number of accidents per million of worked hours) | 3.99 | 2.74 | 2.45 | 1.93 | 1.22 | 0.84 | 0.80 | 0.65 | 0.57 | 0.40 |
| Contractors injury frequency rate | 7.84 | 2.59 | 1.54 | 1.45 | 1.09 | 0.97 | 0.71 | 0.57 | 0.45 | 0.32 |
| Fatality index | (fatal injuries per one hundred millions of worked hours) | 5.64 | 3.38 | 2.31 | 2.97 | 2.75 | 1.20 | 4.77 | 1.94 | 1.10 | 0.98 |
| Oil spills due to operations | (barrels) | 7,813 | 6,908 | 6,151 | 6,731 | 4,749 | 6,259 | 4,269 | 7,295 | 3,759 | 1,901 | |||||||||||
| Direct GHG emission | (mmtonnes CO2 eq) | 58.34 | 61.85 | 60.72 | 67.25 | 59.59 | 55.49 | 58.26 | 49.13 | 52.50 | 47.30 | |||||||||||
| R&D expenditure (b) | (euro million) | 257 | 204 | 222 | 208 | 211 | 233 | 218 | 190 | 211 | 197 | |||||||||||
| Exploration & Production | ||||||||||||||||||||||
| Proved reserves of hydrocarbons | (mmboe) | 7,218 | 6,837 | 6,436 | 6,370 | 6,600 | 6,571 | 6,843 | 7,086 | 7,166 | 6,535 | |||||||||||
| Reserve life index | (years) | 12.1 | 10.8 | 10.0 | 10.0 | 10.0 | 10.2 | 10.3 | 12.3 | 11.5 | 11.1 | |||||||||||
| Production of hydrocarbons | (kboe/d) | 1,624 | 1,737 | 1,770 | 1,736 | 1,797 | 1,769 | 1,815 | 1,581 | 1,701 | 1,619 | |||||||||||
| Gas & Power |
| Sales of consolidated companies (including own consumption) | (bcm) | 76.49 | 82.62 | 85.76 | 84.83 | 89.32 | 89.60 | 82.00 | 84.05 | 84.30 | 83.60 |
| Sales of Eni’s affiliates (Eni’s share) | 5.84 | 7.08 | 7.65 | 8.74 | 8.91 | 7.95 | 9.41 | 9.85 | 8.29 | 6.96 | ||||||||||||
| Total sales and own consumption (G&P) | 82.33 | 89.70 | 93.41 | 93.57 | 98.23 | 97.55 | 91.41 | 93.90 | 92.59 | 90.56 | ||||||||||||
| E&P sales in Europe and in the Gulf of Mexico | 4.70 | 4.51 | 4.69 | 5.39 | 6.00 | 6.17 | 5.65 | 2.86 | 2.73 | 2.61 | ||||||||||||
| Worldwide gas sales | 87.03 | 94.21 | 98.10 | 98.96 | 104.23 | 103.72 | 97.06 | 96.76 | 95.32 | 93.17 | ||||||||||||
| Electricity sold | (TWh) | 16.95 | 27.56 | 31.03 | 33.19 | 29.93 | 33.96 | 39.54 | 40.28 | 42.58 | 35.05 | |||||||||||
| Refining & Marketing | ||||||||||||||||||||||
| Throughputs on own account | (mmtonnes) | 37.69 | 38.79 | 38.04 | 37.15 | 35.84 | 34.55 | 34.80 | 31.96 | 30.01 | 27.38 | |||||||||||
| Balanced capacity of wholly-owned refineries | (kbbl/d) | 504 | 524 | 534 | 544 | 737 | 747 | 757 | 767 | 767 | 787 | |||||||||||
| Sales of refined products | (mmtonnes) | 53.54 | 51.63 | 51.13 | 50.15 | 49.16 | 45.59 | 46.80 | 45.02 | 48.33 | 43.49 | |||||||||||
| Retail sales in Europe | 14.40 | 12.42 | 12.48 | 12.65 | 12.03 | 12.02 | 11.73 | 11.37 | 10.87 | 9.69 | ||||||||||||
| Service stations at year end | (units) | 9,140 | 6,282 | 6,294 | 6,440 | 5,956 | 5,986 | 6,167 | 6,287 | 6,384 | 6,386 | |||||||||||
| Average throughput per service station | (kliters/y) | 1,970 | 2,479 | 2,470 | 2,486 | 2,502 | 2,477 | 2,353 | 2,206 | 2,064 | 1,828 | |||||||||||
| Versalis | ||||||||||||||||||||||
| Production | (ktonnes) | 7,118 | 7,282 | 7,072 | 8,795 | 7,372 | 6,521 | 7,220 | 6,245 | 6,090 | 5,817 | |||||||||||
| of which: - Intermediates | 4,236 | 4,450 | 4,275 | 5,688 | 5,110 | 4,350 | 4,860 | 4,101 | 3,595 | 3,462 | ||||||||||||
| of which: - Polymers | 2,882 | 2,832 | 2,797 | 3,107 | 2,262 | 2,171 | 2,360 | 2,144 | 2,495 | 2,355 | ||||||||||||
| Average plant utilization rate | (%) | 75.2 | 78.4 | 76.4 | 80.6 | 68.6 | 65.4 | 72.9 | 65.3 | 66.7 | 65.3 | |||||||||||
| Engineering & Construction | ||||||||||||||||||||||
| Orders acquired | (euro million) | 5,784 | 8,395 | 11,172 | 11,845 | 13,860 | 9,917 | 12,935 | 12,505 | 13,391 | 10,653 | |||||||||||
| Order backlog at year end | 8,521 | 10,122 | 13,191 | 15,390 | 19,105 | 18,370 | 20,505 | 20,417 | 19,739 | 17,514 | ||||||||||||
| (a) Following the
divestment of Regulated Businesses in Italy, data for the
year 2012 do not include Snam contribution. Results for
the 2008-2011 period have been restated accordingly. (b) Net of general and administrative costs. |
Share data |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
| Net profit (a) (b) | (euro) | 1.87 | 2.34 | 2.49 | 2.73 | 2.43 | 1.21 | 1.74 | 1.89 | 2.15 | 1.42 | |||||||||||||
| Net profit - continuing operations (a) (b) (*) | 2.47 | 1.24 | 1.72 | 1.90 | 1.16 | 1.42 | ||||||||||||||||||
| Dividend | (euro million) | 0.90 | 1.10 | 1.25 | 1.30 | 1.30 | 1.00 | 1.00 | 1.04 | 1.08 | 1.10 | |||||||||||||
| Dividend pertaining to the year | 3,384 | 4,086 | 4,594 | 4,750 | 4,714 | 3,622 | 3,622 | 3,695 | 3,840 | 3,949 | ||||||||||||||
| Cash flow | (euro) | 3.31 | 3.97 | 4.59 | 4.23 | 5.99 | 3.07 | 4.06 | 3.97 | 3.41 | 3.52 | |||||||||||||
| Dividend yield (c) | (%) | 4.9 | 4.7 | 5.0 | 5.3 | 7.6 | 5.8 | 6.1 | 6.6 | 5.9 | 6.5 | |||||||||||||
| Net profit per ADR (d) (*) | (US$) | 4.66 | 5.81 | 6.26 | 7.49 | 7.27 | 3.45 | 4.59 | 5.29 | 2.98 | 3.77 | |||||||||||||
| Dividend per ADR (d) | 2.17 | 2.74 | 3.14 | 3.56 | 3.82 | 2.79 | 2.65 | 2.90 | 2.78 | 2.83 | ||||||||||||||
| Cash flow per ADR (d) | 8.96 | 9.40 | 11.53 | 11.60 | 17.63 | 8.56 | 10.77 | 11.05 | 8.77 | 9.04 | ||||||||||||||
| Dividend yield per ADR (c) | (%) | 5.0 | 4.7 | 5.0 | 5.3 | 7.6 | 5.8 | 6.1 | 6.6 | 5.8 | 4.6 | |||||||||||||
| Pay-out | 48 | 46 | 50 | 47 | 53 | 81 | 57 | 55 | 50 | 77 | ||||||||||||||
| Number of shares at period end representing share capital | (million shares) | 4,004.4 | 4,005.4 | 4,005.4 | 4,005.4 | 4,005.4 | 4,005.4 | 4,005.4 | 4,005.4 | 3,634.2 | 3,634.2 | |||||||||||||
| Average number of shares outstanding in the year (e) (fully diluted) | 3,771.7 | 3,763.4 | 3,701.3 | 3,669.2 | 3,638.9 | 3,622.4 | 3,622.5 | 3,622.7 | 3,622.8 | 3,622.8 | ||||||||||||||
| TSR | (%) | 28.5 | 35.3 | 14.8 | 3.2 | (29.1 | ) | 13.7 | (2.2 | ) | 5.1 | 22.0 | 1.3 |
| (*) Following the
divestment of Regulated Businesses in Italy, results of
Snam have been accounted for as "discontinued
operations", based on IFRS 5. Results for the
2008-2011 period have been restated accordingly. Net
profit refers to results of continuing operations as
reported in Eni consolidated Annual Report. (a) Calculated on the average number of Eni shares outstanding during the year. (b) Pertaining to Eni’s shareholders. (c) Ratio between dividend of the year and average share price in December. (d) One ADR represents 2 shares. Net profit, dividends and cash flow data were converted using average exchange rates. Dividends data were converted at the Noon Buying Rate of the pay-out date. (e) Calculated by excluding own shares in portfolio. |
- 8 - |
Contents
Eni Fact Book Eni at a glance
Share information |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
| Share price - Milan Stock Exchange | ||||||||||||||||||||||
| High | (euro) | 18.75 | 24.96 | 25.73 | 28.33 | 26.93 | 18.35 | 18.56 | 18.42 | 18.70 | 19.48 | |||||||||||
| Low | 14.72 | 17.93 | 21.82 | 22.76 | 13.80 | 12.30 | 14.61 | 12.17 | 15.25 | 15.29 | ||||||||||||
| Average | 16.94 | 21.60 | 23.83 | 25.10 | 21.43 | 16.59 | 16.39 | 15.95 | 17.18 | 17.57 | ||||||||||||
| End of the period | 18.42 | 23.43 | 25.48 | 25.05 | 16.74 | 17.80 | 16.34 | 16.01 | 18.34 | 17.49 | ||||||||||||
| ADR price (a) - New York Stock Exchange | ||||||||||||||||||||||
| High | (US$) | 126.45 | 151.35 | 67.69 | 78.29 | 84.14 | 54.45 | 53.89 | 53.74 | 49.44 | 52.12 | |||||||||||
| Low | 92.35 | 118.50 | 54.65 | 60.22 | 37.22 | 31.07 | 35.37 | 32.98 | 36.85 | 40.39 | ||||||||||||
| Average | 105.60 | 134.02 | 59.97 | 68.80 | 63.38 | 46.36 | 43.56 | 44.41 | 44.24 | 46.68 | ||||||||||||
| End of the period | 125.84 | 139.46 | 67.28 | 72.43 | 47.82 | 50.61 | 43.74 | 41.27 | 49.14 | 48.49 | ||||||||||||
| Average daily exchanged shares | (million shares) | 20.0 | 28.5 | 26.2 | 30.5 | 28.7 | 27.9 | 20.7 | 22.9 | 15.6 | 15.4 | |||||||||||
| Value | (euro million) | 338.7 | 620.7 | 619.1 | 773.1 | 610.4 | 461.7 | 336.0 | 355.0 | 267.0 | 271.4 | |||||||||||
| Number of shares outstanding at period end (b) | (million shares) | 3,770.0 | 3,727.3 | 3,680.4 | 3,656.8 | 3,622.4 | 3,622.4 | 3,622.7 | 3,622.7 | 3,622.8 | 3,622.8 | |||||||||||
| Market capitalization (c) | ||||||||||||||||||||||
| EUR | (billion) | 69.4 | 87.3 | 93.8 | 91.6 | 60.6 | 64.5 | 59.2 | 58.0 | 66.4 | 63.4 | |||||||||||
| USD | 94.9 | 104.0 | 123.8 | 132.4 | 86.6 | 91.7 | 79.2 | 75.0 | 87.7 | 87.4 | ||||||||||||
| (a)
Effective January 10, 2006 a 5:2 stock split was made.
Previous period’s prices have not been restated. (b) Excluding treasury shares. (c) Number of outstanding shares by reference price at period end. |
Data on Eni share placement |
1995 |
1996 |
1997 |
1998 |
2001 |
| Offer price | (euro/share) |
5.42 |
7.40 |
9.90 |
11.80 |
13.60 |
|||||||
| Number of share placed | (million shares) |
601.9 |
647.5 |
728.4 |
608.1 |
200.1 |
|||||||
| of which: through bonus share | 1.9 |
15.0 |
24.4 |
39.6 |
|||||||||
| Percentage of share capital (a) | (%) |
15.0 |
16.2 |
18.2 |
15.2 |
5.0 |
|||||||
| Proceeds | (euro million) |
3,254 |
4,596 |
6,869 |
6,714 |
2,721 |
|||||||
| (a) Refers to share capital at December 31, 2013. |
- 9 -
Contents
Eni Fact Book Eni's business model
- 10 -
Contents
Eni Fact Book Eni's business model
| The inclusion of all
Eni’s people with their diversity merges with the
protection of health and safety on the workplace, with
the professional development and engagement in the
company’s objectives. Eni guarantees equal treatment
to all its people defining worldwide remuneration
policies and committing itself and its suppliers to the
respect of the basic workers’ rights in all the
Countries of operation. Responsibility is assumed as commitment to transparency and anticorruption practices while respecting human rights in all areas and promoting the development of Countries and their society. In deploying its activities, Eni activates a flow of resources that can be crucial for economic growth. Only a strict discipline of integrity and promotion of transparency, in particular as concerns payments to producing Countries can protect from corruption and build the basis for a proper use of these resources aimed at sustainable development. Our way of doing business is based on operating excellence that leverages on best practices, quality systems, advanced and high quality technologies to guarantee full respect of communities and their environment. A safe management of plants and the mitigation of risks represent a prerequisite for a proper environmental management and for the reduction of environmental impacts. The exploration of frontier areas and Asian territories that are considered difficult and environmentally sensitive are the result not |
only of Eni’s drive to
development while applying new technologies but also of a
responsible and sustainable corporate strategy. Eni’s presence worldwide in the most sensitive areas was made possible by technological innovation and the application of advanced methodologies that allow work also in harsh contexts guaranteeing the protection of the environments and the conservation of sensitive ecosystems and biodiversity. Lastly, as an integrated energy company, Eni works alongside governments of producing Countries in planning and designing solutions for the development of local energy systems, cooperating with national companies in the development of energy sources and building infrastructure for their use and monetization. One of the main actions performed concerns the fight against energy poverty in particular in Sub-Saharan Africa with the support of the development of local technologies and the reduction of waste where infrastructure already exists. Eni has in fact started a new path of evolution and relaunch of its chemical and refining activities directing its focus on the so called green chemistry and bio-refining. The table below describes the main results associated to each capital. For detailed information and results from the use of financial and manufacture capitals, see the Consolidated Sustainability Statements and the Financial Review of the 2013 Annual Report. |
Safety |
2009 |
2010 |
2011 |
2012 |
2013 |
| Injury frequency rate | (number of accidents per million of worked hours) | 0.92 | 0.75 | 0.60 | 0.49 | 0.35 | ||||||
| - employees | 0.84 | 0.80 | 0.65 | 0.57 | 0.40 | |||||||
| - contractors | 0.97 | 0.71 | 0.57 | 0.45 | 0.32 | |||||||
| Fatality index | (fatal injuries/one hundred millions of worked hours) | 1.20 | 4.77 | 1.94 | 1.10 | 0.98 | ||||||
| - employees | 0.89 | 6.66 | 1.19 | 0.87 | 1.74 | |||||||
| - contractors | 1.40 | 3.55 | 2.38 | 1.23 | 0.53 | |||||||
| Safety expenditure and investments | (euro million) | 488 | 260 | 320 | 371 | 409 | ||||||
| Professional illnesses reported | (number) | 123 | 184 | 135 | 69 | 68 | ||||||
| Health and hygiene expenditure and investments | (euro million) | 78 | 55 | 79 | 48 | 51 |
Employees |
2009 |
2010 |
2011 |
2012 |
2013 |
| Employees as of December 31 | (number) | 71,461 | 73,768 | 72,574 | 77,838 | 82,289 | ||||||
| - men | 59,506 | 61,607 | 60,032 | 64,978 | 68,688 | |||||||
| - women | 11,955 | 12,161 | 12,542 | 12,860 | 13,601 | |||||||
| Employees abroad by type | 42,633 | 45,967 | 45,516 | 51,034 | 55,507 | |||||||
| - locals | 33,483 | 35,835 | 34,801 | 39,668 | 43,121 | |||||||
| - Italian expatriates | 2,771 | 3,123 | 3,208 | 3,867 | 3,955 | |||||||
| - International expatriates (including TCN) | 6,379 | 7,009 | 7,507 | 7,499 | 8,431 | |||||||
| Senior Managers employed | 1,437 | 1,454 | 1,468 | 1,474 | 1,475 | |||||||
| - of which women | 141 | 147 | 152 | 159 | 160 | |||||||
| Managers/Supervisors employed | 12,395 | 12,837 | 12,754 | 13,199 | 13,637 | |||||||
| - of which women | 2,258 | 2,421 | 2,477 | 2,615 | 2,767 | |||||||
| Employees | 33,931 | 34,599 | 36,019 | 38,497 | 39,943 | |||||||
| - of which women | 9,171 | 9,040 | 9,394 | 9,777 | 10,310 | |||||||
| Workers employed | 23,698 | 24,878 | 22,333 | 24,668 | 27,234 | |||||||
| - of which women | 385 | 553 | 519 | 309 | 364 | |||||||
| Local employees abroad by professional category | 33,483 | 35,835 | 34,801 | 39,668 | 43,121 | |||||||
| - of which senior managers | 224 | 228 | 228 | 223 | 216 | |||||||
| - of which managers/supervisors | 3,138 | 3,461 | 3,476 | 3,798 | 4,001 | |||||||
| - of which employees | 15,533 | 16,269 | 17,529 | 19,683 | 20,522 | |||||||
| - of which workers | 14,588 | 15,877 | 13,568 | 15,964 | 18,382 | |||||||
| Training hours | (thousand hours) | 2,930 | 2,949 | 3,127 | 3,132 | 4,350 |
- 11 -
Contents
Eni Fact Book Eni's business model
Spending for the territory |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Total spending for the territory | 98 | 107 | 101 | 91 | 101 | |||||
| - of which interventions on the territories from agreements, conventions and PSA | 70 | 75 | 69 | 63 | 58 | |||||
| - of which short-term investments linked to initiatives in favor of the territories | 1 | 4 | 1 | 3 | 1 | |||||
| - of which association memberships fees | 1 | 2 | 2 | 2 | 2 | |||||
| - of which contributions to the Eni Foundation | 5 | 5 | 3 | - | 10 | |||||
| - of which sponsorships for the territory | 16 | 17 | 22 | 19 | 26 | |||||
| - of which contributions to the Eni Enrico Mattei Foundation | 4 | 4 | 4 | 4 | 4 |
| Procurement by geographical area 2013 | Africa | Americas | Asia | Italy | Rest of Europe | Oceania | ||||||||
| Number of suppliers | (number) | 7,105 | 6,116 | 5,246 | 9,980 | 9,940 | 520 | |||||||
| Total procurement | (euro million) | 8,434 | 2,871 | 5,036 | 10,714 | 5,340 | 419 | |||||||
| - in goods | (%) | 17.5 | 24.2 | 16.2 | 11.2 | 17.9 | 10.3 | |||||||
| - in works | 16.3 | 26.3 | 21.5 | 12.4 | 26.1 | 1.0 | ||||||||
| - in services | 60.8 | 47.8 | 49.2 | 73.1 | 53.7 | 88.2 | ||||||||
| - of which unidentifiable | 5.4 | 1.7 | 13.1 | 3.3 | 2.3 | 0.5 |
| Local procurement 2013 by Country | |
| % procurement on local market | Countries |
| 0 - 25% | UAE, Luxembourg, Malaysia, Mozambique, Peru, Portugal. |
| 26 - 49% | Angola, China, Germany, Iran, Iraq, Libya, Norway, Republic Czech, Slovenia. |
| 50 - 74% | Algeria, Saudi Arabia, Brazil, Republic of Congo, Croatia, Egypt, France, Ghana, United Kingdom, India, Italy, Kazakhstan, the Netherlands, Pakistan, Singapore, Switzerland, Togo, Tunisia, Hungary. |
| 75 - 100% | Argentina, Australia, Austria, Belgium, Canada, Cyprus, Ecuador, Gabon, Indonesia, Kenya, Mexico, Nigeria, Poland, Romania, Russia, Spain, United States, Ukraine, Venezuela, Vietnam. |
Relations with suppliers |
2009 |
2010 |
2011 |
2012 |
2013 |
| Procurement by macro-class | (euro million) | 33,084 | 31,187 | 32,586 | 31,811 | 32,814 | ||||||
| Supplier concentration top 20 | (%) | 24 | 18 | 20 | 15 | 17 | ||||||
| Suppliers | (number) | 33,447 | 32,601 | 31,878 | 32,621 | 34,848 | ||||||
| Qualification cycles carried out during the year | 21,066 | 32,962 | 26,936 | 31,991 | 46,913 | |||||||
| Suppliers subjected to qualification procedures including screening on human rights | 7,798 | 10,096 | 11,471 | 12,471 | 14,833 | |||||||
| % procurement from suppliers subjected to qualification procedures including screening on human rights | (%) | 87 | 85 | 90 | 88 | 87 |
Relations with customers |
2009 |
2010 |
2011 |
2012 |
2013 |
| R&M Customer satisfaction | ||||||||||||
| Customer satisfaction index | (likert scale) | 7.93 | 7.84 | 7.74 | 7.90 | 8.10 | ||||||
| Customers involved in the satisfaction survey (R&M) | (number) | 10,711 | 30,618 | 30,524 | 30,438 | 29,863 | ||||||
| G&P Customer satisfaction | ||||||||||||
| Eni customer satisfaction score | (%) | 83.7 | 87.4 | 88.6 | 89.7 | 90.4 (b) | ||||||
| Panel Average (G&P) (a) | 87.0 | 87.4 | 90.8 | 91.2 | 93.1 |
| (a) The
panel analyzed refers to companies representing more than
50% of the market with more than 50,000 customers
(Source: AEEG survey – carried out on the first half
of 2013 – relating to the quality of telephone
services of providers of electricity and gas). (b) The customer satisfaction score for 2013 relates to the first six months as at the date of publication of this document the Authority for Electricity and Gas had not yet published the data for the second half of the year. |
- 12 -
Contents
Eni Fact Book Eni's business model
Environmental performance |
2009 |
2010 |
2011 |
2012 |
2013 |
| Direct GHG emissions | (tonnes CO2 eq) | 55,494,551 | 58,259,157 | 49,128,806 | 52,498,789 | 47,299,030 | ||||||
| - of which CO2 from combustion and process | (tonnes) | 35,788,121 | 37,948,625 | 35,319,845 | 36,365,220 | 34.171.33 | ||||||
| - of which CO2 equivalents from flaring | (tonnes CO2 eq) | 13,839,353 | 13,834,988 | 9,553,894 | 9,461,518 | 8,478,376 | ||||||
| - of which CO2 equivalents from CH4 (methane) | 3,684,874 | 4,135,523 | 3,222,051 | 4,475,756 | 2,901,503 | |||||||
| - of which CO2 equivalents from venting | 2,182,202 | 2,340,021 | 1,033,017 | 2,196,295 | 1,747,812 | |||||||
| CO2 eq emissions/100% net operated hydrocarbon production | (tonnes CO2 eq/toe) | 0.235 | 0.235 | 0.206 | 0.226 | 0.222 | ||||||
| CO2 eq emissions/kWh eq (EniPower) | (kg CO2 eq/kWh eq) | 0.410 | 0.407 | 0.404 | 0.399 | 0.407 | ||||||
| CO2 eq emissions/uEDC (R&M) | (tonnes CO2 eq/kbbl/SD) | 1,240 | 1,284 | 1,231 | 1,143 | 1,049 | ||||||
| NOx (nitrogen oxide) emissions | (tonnes NO2 eq) | 110,910 | 106,040 | 97,114 | 115,571 | 102,295 | ||||||
| SOx (sulphur oxide) emissions | (tonnes SO2 eq) | 45,985 | 50,085 | 37,943 | 30,137 | 27,949 | ||||||
| NMVOC (Non-Methane Volatile Organic Compounds) emissions | (tonnes) | 75,318 | 68,490 | 46,228 | 48,702 | 43,536 | ||||||
| TSP (Total Suspended Particulate) emissions | 3,936 | 3,783 | 3,297 | 3,548 | 2,848 | |||||||
| Energy consumption from production activities/100% operated hydrocarbon gross production (E&P) | (GJ/toe) | 1,615 | 1,557 | 1,536 | ||||||||
| Total water withdrawals | (mmcm) | 2,839.97 | 2,786.78 | 2,577.98 | 2,359.21 | 2,206.36 | ||||||
| Total production and/or process water extracted (a) | 59.67 | 61.15 | 58.16 | 61.17 | 61.32 | |||||||
| - of which re-injected | 23.32 | 27.11 | 25.18 | 20.82 | 20.23 | |||||||
| Total recycled and/or reused water | 490.22 | 544.63 | 519.43 | 519.93 | 735.89 | |||||||
| Total number of oil spills (>1 barrel) (b) | (number) | 308 | 330 | 418 | 329 | 386 | ||||||
| Total volume of oil spills (>1 barrel) (b) | (barrels) | 21,547 | 22,964 | 14,952 | 12,428 | 7,903 | ||||||
| - of which from sabotage and terrorism | 15,288 | 18,695 | 7,657 | 8,669 | 6,002 | |||||||
| - of which due to operations | 6,259 | 4,269 | 7,295 | 3,759 | 1,901 | |||||||
| Waste from production activities | (tonnes) | 1,078,839 | 1,400,488 | 1,309,135 | 1,378,385 | 1,599,931 | ||||||
| Hazardous waste from production activities | 418,120 | 489,108 | 476,552 | 365,695 | 374,412 | |||||||
| Non-hazardous waste from production activities | 660,719 | 911,380 | 832,582 | 1,012,690 | 1,225,519 | |||||||
| Environmental expenditure and investments | (euro million) | 1,231 | 916 | 893 | 743 | 711 |
| (a) Since
2012, the amount includes the contribution of production
water injected into deep wells for disposal purposes. (b) Data until 2011 include oil spills which are less than a barrel. |
Technological innovation |
2009 |
2010 |
2011 |
2012 |
2013 |
| R&D expenditure | (euro million) | 287 | 275 | 246 | 263 | 218 | ||||||
| - R&D expenditure net of general and administrative costs | 233 | 218 | 190 | 211 | 197 | |||||||
| Personnel employed in R&D activities (full time equivalent) | (number) | 1,019 | 1,019 | 925 | 975 | 986 | ||||||
| Existing patents | 7,751 | 7,998 | 8,884 | 8,931 | 9,427 |
Knowledge management |
(number) |
2009 |
2010 |
2011 |
2012 |
2013 |
| Knowledge community/network by application sector | 44 | 53 | 58 | 63 | 65 | |||||
| - business | 38 | 48 | 53 | 53 | 55 | |||||
| - transversal | 6 | 5 | 5 | 10 | 10 | |||||
| Participants in knowledge community/network by application sector | 1,827 | 2,624 | 3,634 | 4,732 | 5,676 | |||||
| - business | 1,601 | 2,385 | 3,376 | 4,098 | 4,909 | |||||
| - transversal | 226 | 239 | 258 | 634 | 767 |
- 13 -
Contents
Eni Fact Book Exploration & Production
Exploration & Production |
Key performance indicators |
2009 |
2010 |
2011 |
2012 |
2013 |
||||||||
| Employees injury frequency rate | (No. of accidents per million of worked hours) | 0.49 | 0.72 | 0.41 | 0.28 | 0.14 | ||||||
| Contractors injury frequency rate | 0.59 | 0.48 | 0.41 | 0.36 | 0.26 | |||||||
| Fatality index | (No. of fatalities per 100 million of worked hours) | 1.77 | 7.90 | 1.83 | 0.81 | - | ||||||
| Net sales from operations (a) | (euro million) | 23,801 | 29,497 | 29,121 | 35,881 | 31,268 | ||||||
| Operating profit | 9,120 | 13,866 | 15,887 | 18,470 | 14,871 | |||||||
| Adjusted operating profit | 9,489 | 13,898 | 16,075 | 18,537 | 14,646 | |||||||
| Adjusted net profit | 3,881 | 5,609 | 6,865 | 7,426 | 5,952 | |||||||
| Capital expenditure | 9,486 | 9,690 | 9,435 | 10,307 | 10,475 | |||||||
| Adjusted ROACE | (%) | 12.3 | 16.0 | 17.2 | 17.6 | 13.5 | ||||||
| Profit per boe (b) | ($/boe) | 8.1 | 11.9 | 17.0 | 16.0 | 15.5 | ||||||
| Opex per boe (b) | 5.8 | 6.1 | 7.3 | 7.1 | 8.3 | |||||||
| Cash Flow per boe (d) | 23.7 | 25.5 | 31.7 | 32.8 | 31.9 | |||||||
| Finding & Development cost per boe (c) (d) | 28.9 | 19.3 | 18.8 | 17.4 | 19.2 | |||||||
| Average hydrocarbons realizations (d) | 46.90 | 55.60 | 72.26 | 73.39 | 71.87 | |||||||
| Production of hydrocarbons (d) | (kboe/d) | 1,769 | 1,815 | 1,581 | 1,701 | 1,619 | ||||||
| Estimated net proved reserves of hydrocarbons (d) | (mmboe) | 6,571 | 6,843 | 7,086 | 7,166 | 6,535 | ||||||
| Reserves life index (d) | (years) | 10.2 | 10.3 | 12.3 | 11.5 | 11.1 | ||||||
| Organic reserves replacement ratio (d) | (%) | 93 | 127 | 143 | 147 | 105 | ||||||
| Employees at year end | (number) | 10,271 | 10,276 | 10,425 | 11,304 | 12,352 | ||||||
| of which: outside Italy | 6,388 | 6,370 | 6,628 | 7,371 | 8,219 | |||||||
| Oil spills due to operations (>1 barrel) | (bbl) | 6,259 | 3,820 | 2,930 | 3,015 | 1,728 | ||||||
| Oil spills from sabotage (>1 barrel) | 15,288 | 18,695 | 7,657 | 8,436 | 5,493 | |||||||
| Produced water re-injected | (%) | 39 | 44 | 43 | 49 | 55 | ||||||
| Direct GHG emissions | (mmtonnes CO2 eq) | 29.73 | 31.20 | 23.59 | 28.46 | 25.71 | ||||||
| of which: from flaring | 13.84 | 13.83 | 9.55 | 9.46 | 8.48 | |||||||
| Community investment | (euro million) | 67 | 72 | 62 | 59 | 53 | ||||||
| (a) Before
elimination of intragroup sales. (b) Consolidated subsidiaries. (c) Three-year average. (d) Includes Eni’s share of equity-accounted entities. |
| Performance of the year | ||
| I In 2013, employees and contractors
injury frequency rate continued with a positive trend
(down by 48.7% and by 28.8% from 2012, respectively),
with a zero fatality index. - Direct greenhouse gas emissions decreased by 9.7% compared to the previous year (down by 10.4% from flaring) due to, in particular, flaring down projects in Nigeria and higher supply to the power plants in Congo (in particular to the CEC power plant, Eni’s interest 20%). - Oil spills reported a decline from 2012 (down by 42.7% from operations; down by 34.9% from sabotage) and zero blow-outs for the tenth consecutive year. - Achieved a record result of 55% in re-injection of the produced water. In particular, a water re-injection program is planned in the Nigerian onshore for the next years. |
- In 2013 the E&P
Division reported a decline of euro 1,474 million, or 20%
from 2012 in adjusted net profit due to extraordinary
disruptions in particular in Libya, Nigeria and Algeria.
Cash generation was strong with $30 per barrel due to our
low cost position. - In 2013, oil and natural gas production of 1,619 kboe/day declined by 4.8% from 2012 mainly due to geopolitical factors. The contribution of the start-ups/ramp-ups was partly offset by the effects of planned facility downtimes and technical problems, as well as mature field declines. - Estimated net proved reserves at December 31, 2013 amounted to 6.54 bboe based on a reference Brent price of $108 per barrel. The organic reserves replacement ratio was 105% with a reserves life index of 11.1 years (11.5 years in 2012). |
- 14 -
Contents
Eni Fact Book Exploration & Production
| Portfolio optimization I Concluded the sale of a 20% interest in
Area 4 operated by Eni and located in Mozambique to
Chinese partner CNPC, for a total consideration of euro
3.4 billion. This operation has ensured an anticipated
monetization of future cash flow expected from asset
development. CNPC’s entrance into Area 4 is
strategically significant for the project because of the
worldwide importance of the company in the upstream and
downstream sectors. Exploration activity I In 2013 exploration activity reported a
successful performance, with approximately 1.8 bboe of
discovered resources at an average competitive cost of
$1.2 per barrel. |
Australia, Angola, Egypt,
Norway and Pakistan where existing facilities ensure to
reduce time-to-market and costs. - Achieved a strategic cooperation agreement with Rosneft for exploration activities in the Russian offshore (Fedynsky and Central Barents licenses) where seismic surveys started, and in the Black Sea (Western Chernomorsky license). - Signed an agreement with Quicksilver for joint exploration and development of unconventional oil reservoirs (shale oil), located in onshore of the United States. In particular, Eni will participate with a 50% interest. - In 2013 exploration expenditure amounted to euro 1,669 million. In the year 53 new exploratory wells (27.8 net to Eni) were completed with an overall commercial success rate of 36.9% (38.5% net to Eni). In addition 129 exploratory wells drilled are in progress at year end (55 net to Eni). Sustainability and portfolio developments I Developed a training program in the
field of human rights for staff, in particular employed
in the security area, at Eni’s subsidiaries in
Indonesia and Algeria. The activities involved totally
approximately 200 employees in the Jakarta and Borneo
area, as well as Algeri. This Eni’s program is a
part of a multi-year project presented at Global Compact
Leaders Summit in September 2013. |
- 15 -
Contents
Eni Fact Book Exploration & Production
Activity areas
| n Italy Eni has been operating in Italy since 1926. In 2013, Eni’s oil and gas production amounted to 186 kboe/d. Eni’s activities in Italy are deployed in the Adriatic and Ionian Sea, the Central Southern Apennines, mainland and offshore Sicily and the Po Valley, on a total developed and undeveloped acreage of 21,478 square kilometers (17,282 net to Eni). Eni’s exploration and development activities in Italy are regulated by concession contracts (67 operated onshore and 72 operated offshore). Adriatic and Ionian Sea |
opportunities. Moreover, in 2013 Eni presented to the relevant Authorities the acquisition of an exploration license which is located nearby Eni’s producing fields. Central
Southern Apennines |
- 16 -
Contents
Eni Fact Book Exploration & Production
 Sicily
|
Eni submitted to the
relevant Authorities the necessary information of the
environmental process to sanction the development plan of
Argo and Cassiopea discoveries, in offshore Sicily. The
plan was approved by the technical authorities. n Rest of Europe Norway Norwegian Sea Norwegian section of the North Sea |
- 17 -
Contents
Eni Fact Book Exploration & Production
 Barents Sea |
Exploration
Exploration activities yielded positive results in the PL
532 license (Eni’s interest 30%) with the oil and
gas Skavl discovery, in addition to the recent oil and
gas discoveries of Skrugard and Havis. The total
recoverable resources of the license are currently
estimated at over 500 million barrels at 100% and are
planned to be put in production by means of fast-track
synergic development.
United Kingdom |
- 18 -
Contents
Eni Fact Book Exploration & Production
 Development The
development activities concerned the West Franklin field
with the construction and installation of production
platform and linkage to nearby treatment facilities.
Start-up is expected at the end of 2014. n North Africa Algeria |
Blocks 403a/d and Rom North Production Production in the area comes mainly from the HBN and Rom and satellite fields and represented approximately 18% of Eni’s production in Algeria in 2013. Production from Rom and Satellites (Zea, Zek and Rec) is treated at the Rom Central Production Facilities (CPF) and sent to the BRN treatment plant for final treatment, while production from the HBN field is treated at the HBN/HBNS oil center at the Groupment Berkine. Blocks
401a/402a Block 403 Block 404 Block 405b
|
- 19 -
Contents
Eni Fact Book Exploration & Production
| Block 208 Production In 2013, the block accounted for approximately 4% of Eni’s production in Algeria, following the start-up of El Merk field. Production start-up was achieved through the construction of a gas treatment plant for approximately 600 mmcf/d, two oil trains for 65 kbbl/d each and three export pipelines linked to the local network. Production peak of 18 kboe/d net to Eni is expected in 2015. Development The El Merk development project provides for the drilling of further 25 productive wells. Egypt
|
Gulf of Suez Production Production mainly comes from the Belayim field, Eni’s first large oil discovery in Egypt, which produced approximately 105 kbbl/d (56 net to Eni) in 2013. Development Drilling and infilling activities are in progress in the Belayim area, in order to optimize the recovery of its mineral potential. Other activities included the upgrading of the water injection system at the Abu Rudeis field (Eni’s interest 100%). The level of produced water re-injected is 99.5%, corresponding to approximately 1 mmcf/d. Exploration Exploration activities yielded positive results with two near field oil discoveries in the Belayim area. Nile
Delta Baltim Ras el Barr El Temsah Exploration in the Nile Delta Western Desert |
- 20 -
Contents
Eni Fact Book Exploration & Production
| Development
Activities for the year concerned the development program
of Emry Deep discovery and infilling activities in the
area in order to optimize the recovery of its residual
mineral potential. Exploration Exploration activities yielded positive results in the Melehia development lease with three near field oil and gas discoveries and the Rosa North-1X oil discovery. The drilling activities of the Rosa North-1X are underway. Development activities plan to leverage on the existing production facilities. Libya Area A Area B Area C |
produced approximately 39
kbbl/d (approximately 15 net to Eni) in 2013. The field
is exploited through two platforms linked to an FSO unit
with a storage capacity of approximately 1.5 mmbbl. Area D Area E
|
- 21 -
Contents
Eni Fact Book Exploration & Production
| Tunisia Eni has been present in Tunisia since 1961. In 2013, Eni’s production amounted to 13 kboe/d. Eni’s activities are located mainly in the Southern Desert areas and in the Mediterranean offshore facing Hammamet, over a developed acreage of 6,464 square kilometers (2,274 square kilometers net to Eni). Exploration and production in this Country are regulated by concessions. Production Production mainly comes from operated Maamoura and Baraka offshore blocks (Eni’s interest 49%) and the Adam (Eni operator with a 25% interest), Oued Zar (Eni operator with a 50% interest), Djebel Grouz (Eni operator with a 50% interest), MLD (Eni’s interest 50%) and El Borma (Eni’s interest 50%) onshore blocks. Development Production optimization represents the main activity currently performed in the above listed concessions to mitigate the natural field production decline. n Sub-Saharan Africa Angola Block 0 |
Block 3 Block 14 |
- 22 -
Contents
Eni Fact Book Exploration & Production
| Development The
activities concerned mainly the Lianzi field in the Block
14K/A Imi (Eni’s interest 10%), through the linkage
to the existing facilities. Concept Selection activities
are ongoing at the Malange and Lucapa recent discoveries. Block 15 Block 15/06 The LNG business in Angola |
feasibility of a second LNG
train or other alternative projects to market gas and
associated liquids. Congo
|
- 23 -
Contents
Eni Fact Book Exploration & Production
| Zingali and Loufika
(Eni’s interest 85%) fields, with a production of
approximately 90 kboe/d in 2013. Non operated fields are
located in the PEX, Pointe Noire Grand Fond and Likouala
permits (Eni’s interest 35%), with an overall
production of approximately 30 kboe/d in 2013. Development Activities on the M’Boundi (Eni operator with 83% interest) field moved forward with the application of Eni advanced recovery techniques and a design to monetize associated gas. Gas is sold under long-term contracts to power plants in the area including the CEC Centrale Electrique du Congo (Eni’s interest 20%) with a 300 MW generation capacity. These facilities will also receive in the future gas from the offshore discoveries of the Marine XII permit (Eni operator with a 65% interest). In 2013 M’Boundi contractual supplies were approximately 106 mmcf/d (approximately 17 kboe/d net to Eni). Additional gas production will be re-injected within the Eni’s zero gas flaring programs. During the year activities progressed to support the population in M’Boundi area. The social project for 25,000 people provides to improve education, production capacity in agriculture, health, access to water and energy. Development program progressed at the Litchendjili sanctioned project in the Marine XII permit. The project provides for the installation of a production platform, the construction of transport facilities and of an onshore treatment plant. The start-up is expected by the end of 2015, with a production plateau of approximately 12 kboe/d net to Eni. Production will also feed the CEC power station. Exploration Exploration activities yielded positive results in the offshore block Marine XII with the oil and gas discovery and the appraisal of the Nenè Marine field and with the appraisal of gas and condensates discovery of Litchendjili field. The overall discoveries potential is estimated in 2.5 billion boe in place. The block has a further significant oil and gas potential that will be assessed by the next exploratory and delineation campaign. The proximity to existing facilities, good productivity of reservoir and low cost will allow to fast track development, targeting start-up in 2015. Mozambique |
exploration prospect, where
the drilling of two to three additional wells is planned. Leveraging on Eni’s cooperation model, the construction of a gas fired power plant for domestic consumption is being planned with the support of the Mozambican government. In addition, a significant program of ecosystems evaluation and the analysis of biodiversity in the Country were started. This program will be included in the development project of recent discoveries. Eni continues its recruitment and local training program in order to support the activities of hydrocarbons exploration in the Country. In particular the training program that started with the University of Mozambique involved 75 students during the year. Nigeria Blocks OMLs 60, 61, 62
and 63 |
- 24 -
Contents
Eni Fact Book Exploration & Production
| Development Main
activities progressed to support gas production to feed
the Bonny liquefaction plant. In particular, the
Ogbainbiri flowstation was completed with a decline in
flared gas of approximately 5 mmcf/d. This facility
ensured to treat natural gas production of Ogbainbiri
field. In the year, flaring down program includes a
reduction of approximately 50 mmcf/d of gas flared
leveraging on the upgrade of Idu flowstation completed at
the end of 2012; as well as flaring down of Akri with a
reduction of approximately 25 mmcf/d of gas flared. Block OML 118 Block OML 119 |
Block OML 116 Production Production derived mainly from the Agbara field which yielded approximately 3 kbbl/d of oil net to Eni in 2013. Block OML 125 SPDC Joint Venture (NASE) |
- 25 -
Contents
Eni Fact Book Exploration & Production
| Other activity during the
year concerned the Forkados-Yokri field (Eni’s
interest 5%). The project includes the drilling of 24
producing wells, the upgrading of existing flowstations
and the construction of transport facilities. Nigeria LNG n Kazakhstan Eni has been present in Kazakhstan since 1992. Eni co-operates the Karachaganak producing field and is a partner of the consortium of the North Caspian Sea PSA to develop the Kashagan field. Kashagan |
produced. From October 2013 production has been halted
due to a technical issue that occurred to the pipeline
transporting acid gas from offshore to onshore
facilities, without any impact on the environment and
local communities. Recovery activities are ongoing.
Management believes that from 2015 field production will
recover to the originally expected level. Karachaganak |
- 26 -
Contents
Eni Fact Book Exploration & Production
| Production In 2013,
production of the Karachaganak field amounted to 250
kbbl/d of liquids (61 net to Eni) and 865 mmcf/d of
natural gas (214 net to Eni). This field is developed by producing liquids (condensates and oil) from the deeper layers of the reservoir. The gas is marketed (about 50%) at the Russian terminal in Orenburg, re-injected in the higher layers and utilized for the production of fuel gas. Approximately 90% of liquid production are stabilized at the Karachaganak Processing Complex (KPC) with a capacity of approximately 250 kbbl/d and exported to Western markets through the Caspian Pipeline Consortium (Eni’s interest 2%) and the Atyrau-Samara pipeline which is linked to the Russian export network. The remaining volumes of non-stabilized liquid production (about 16 kbbl/d) and associated raw gas not re-injected in the reservoir are marketed at the Russian terminal in Orenburg. Development The expansion project of the Karachaganak field is currently under study. The project is aimed for a further developing gas and condensates reserves by means of the installation, in stages, of gas treatment plants and re-injection facilities to support liquids production plateau and increase gas sales. The development plan is currently in the phase of technical and marketing discussion to be presented to the relevant authorities, with FEED expected in 2014. In 2013 Eni launched an environmental monitoring program to identify the best available monitoring operations for biodiversity protection. Eni continues its commitment to support local communities by means of the construction of schools and educational facilities as well as health assistance for the villages located in the nearby area of Karachaganak. n Rest of Asia China Indonesia |
Production Production
consists mainly of gas and derives from the Sanga Sanga
permit (Eni’s interest 37.8%) with seven production
fields. This gas is treated at the Bontang liquefaction
plant, one of the largest in the world. Liquefied gas is
exported to the Japanese, South Korean and Taiwanese
markets. Development Development activities progressed at the operated Jangkrik (Eni’s interest 55%) and Jau (Eni’s interest 85%) offshore fields. The Jangkrik project includes linkage of production wells to a Floating Production Unit for gas and condensate treatment and the construction of a transportation facility to the Bontang liquefaction plant. Start-up is expected in 2017 with a production peak of 80 kboe/d (42 kboe/d net to Eni) in 2018. The Jau project provides for the drilling of production wells and the linkage to onshore plants via pipeline. Start-up is expected in 2017. Development activities are underway at the Indonesia Deepwater Development project (Eni’s interest 20%), located in the East Kalimantan, to ensure gas supplies to the Bontang plant. The project initially provides for the linkage of the Bangka field to existing production facilities, with start-up expected in 2016. Then the project also provides for the integrated development of the first Hub including the Gendalo, Gandang, Maha fields and the second Hub of the Gehem field. Start up is expected in 2018. Iraq Pakistan |
- 27 -
Contents
Eni Fact Book Exploration & Production
| Turkmenistan Eni started its activities in Turkmenistan with the purchase of the British company Burren Energy plc in 2008. Activities are focused in the Western part of the Country over a developed area of 200 square kilometers net to Eni, splitted into four development areas. In 2013, Eni’s production amounted to 10 kboe/d. Exploration and production activities in Turkmenistan are regulated by PSAs. Production Eni is operator of the Nebit Dag producing Block (with a 100% interest). Production derives mainly from the Burun oilfield. Oil production is shipped to the Turkmenbashi refinery plant. Eni receives, by means of a swap with the Turkmen Authorities, an equivalent amount of oil at the Okarem terminal, close to the South coast of the Caspian Sea. Eni’s entitlement is sold FOB. Associated natural gas is used for own consumption and gas lift system. The remaining amount is delivered to Turkmenneft, via national grid. Development Development activities progressed to support production plateau of the area. n America Ecuador |
Development Workover
activities are being performed in order to maintain the
current production plateau of the area; other development
activities concerned the development of the residual
mineral potential. Upgrading of logistics facilities and
plants were completed. Exploration The activities aimed at the start-up in 2014 of the new exploration program were concluded. Trinidad & Tobago United States |
- 28 -
Contents
Eni Fact Book Exploration & Production
| Gulf of Mexico Eni holds interests in 228 exploration and production blocks in the conventional and deep offshore in the Gulf of Mexico, 139 of which are operated by Eni. Production The main fields operated by Eni are Allegheny, Appaloosa and Morpeth (Eni’s interest 100%), Longhorn-Leo, Devils Towers and Triton (Eni’s interest 75%) as well as Pegasus (Eni’s interest 58%). Eni also holds interests in the Medusa (Eni’s interest 25%), Europa (Eni’s interest 32%) and Thunder Hawk (Eni’s interest 25%) non-operated fields. Development Phase 1 of the development plan was sanctioned at the Heidelberg field (Eni’s interest 12.5%) in the deep offshore of the Gulf of Mexico. The project provides for the drilling of 5 producing wells and the installation of a producing platform. Start-up is expected at the end of 2016 with a production of approximately 9 kboe/d net to Eni. Development activities in the Gulf of Mexico mainly concerned: (i) drilling and completion activities at the Hadrian South (Eni’s interest 30%), Lucius/Hadrian North (Eni’s interest 5.4%) and St. Malo (Eni’s interest 1.25%) fields; (ii) infilling activities at the producing Appaloosa, Longhorn, Pegasus and Front Runner (Eni’s interest 37.5%) fields; and (iii) maintenance of the pipeline linking to the Corral production platform. Exploration In March 2013, Eni was the highest bidder in five offshore exploration blocks located in the Mississippi Canyon and Desoto Canyon areas within the Central Gulf of Mexico Lease Sale 227. Relevant authorities approved the bid of one of five blocks. Texas Alaska Venezuela |
kilometers (1,066 square
kilometers net to Eni). Exploration and production of oil fields are regulated by the terms of the so-called "Empresa Mixta". Under its legal framework, only a company incorporated under the law of Venezuela is entitled to conduct petroleum operations. A stake of at least 60% in the capital of such company is held by an affiliate of the Venezuela state oil company, PDVSA, preferably Corporación Venezuelana de Petróleo (CVP). In the medium term, management expects to increase Eni’s production through ongoing development activities, confirming Venezuela to be one of Eni’s largest producing Countries. Production In March 2013, production (accelerated early production) started-up at the Junin 5 field (Eni’s interest 40%), located in the Orinoco oil belt and containing 35 bbbl of certified heavy oil in place. Early production of the first phase is expected to reach a plateau of 75 kbbl/d by the end of 2015, targeting a long-term production plateau of 240 kbbl/d. The project provides for the construction of a refinery with a capacity of approximately 350 kbbl/d. Eni agreed to finance part of PDVSA’s development costs for the early production phase and engineering activity of refinery plant up to $1.74 billion. Drilling activities and installation of the transport and treatment facilities are ongoing. In 2013, the production of Corocoro field (Eni’s interest 26%) amounted to 37 kbbl/d. Development The sanctioned development plan progressed at the Perla gas discovery, located in the Cardon IV Block (Eni’s interest 50%), in the Gulf of Venezuela. PDVSA exercised its 35% back-in right. Eni will retain the 32.5% joint controlled interest in the company, at the execution of the transfer stake. The early production phase includes the utilization of the existing discovery/appraisal wells and the installation of production platforms linked by pipelines to the onshore treatment plant. Target production of approximately 450 mmcf/d is expected in 2015. The development program will continue with the drilling of additional wells and the upgrading of treatment facilities to reach a production plateau of approximately 1,200 mmcf/d. Exploration Eni is also participating with a 19.5% interest in the Gulfo de Paria Centrale offshore oil exploration block, where the Punta Sur oil discovery is located and with a 40% interest in Punta Pescador and Gulfo de Paria Ovest. During the year, the schedule and program of exploration campaign for the assessment of mineral potential of gas permits Punta Pescador and Gulfo de Paria Ovest were defined. n Australia and Oceania Australia |
- 29 -
Contents
Eni Fact Book Exploration & Production
| In addition, Eni holds
interest in 7 exploration licenses, of which 1 in the
JPDA. Exploration and production activities in Australia are regulated by concession agreements, whereas in the cooperation zone between Timor Leste and Australia (Joint Petroleum Development Area - JPDA) they are regulated by PSAs. Block JPDA 03-13 |
Block JPDA 06-105 Production The Kitan oil field (Eni operator with a 40% interest) started-up in 2011 and amounted to 16 kbbl/d in 2013 (approximately 5 kbbl/d net to Eni). Production is supported by 3 sub-sea wells and operated by an FPSO unit for the oil treatment. Development The second development phase of Kitan field was started-up. This phase includes the drilling and completion of the new development well in the eastern part of the field and the linkage to the existent FPSO. Block WA-33-L |
- 30 -
Contents
Eni Fact Book Exploration & Production
| Estimated net proved hydrocarbons reserves by geographic area | (mmboe) |
| (at December 31) | Italy (a) | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | |||||||||
| 2009 | ||||||||||||||||||
| Estimated net proved hydrocarbons reserves | 703 | 590 | 1,937 | 1,163 | 1,221 | 545 | 279 | 133 | 6,571 | |||||||||
| Consolidated subsidiaries | 703 | 590 | 1,922 | 1,141 | 1,221 | 236 | 263 | 133 | 6,209 | |||||||||
| Equity-accounted entities | 15 | 22 | 309 | 16 | 362 | |||||||||||||
| Developed | 490 | 432 | 1,278 | 804 | 614 | 183 | 181 | 122 | 4,104 | |||||||||
| Consolidated subsidiaries | 490 | 432 | 1,266 | 799 | 614 | 139 | 168 | 122 | 4,030 | |||||||||
| Equity-accounted entities | 12 | 5 | 44 | 13 | 74 | |||||||||||||
| Undeveloped | 213 | 158 | 659 | 359 | 607 | 362 | 98 | 11 | 2,467 | |||||||||
| Consolidated subsidiaries | 213 | 158 | 656 | 342 | 607 | 97 | 95 | 11 | 2,179 | |||||||||
| Equity-accounted entities | 3 | 17 | 265 | 3 | 288 | |||||||||||||
| 2010 | ||||||||||||||||||
| Estimated net proved hydrocarbons reserves | 724 | 601 | 2,119 | 1,161 | 1,126 | 612 | 373 | 127 | 6,843 | |||||||||
| Consolidated subsidiaries | 724 | 601 | 2,096 | 1,133 | 1,126 | 295 | 230 | 127 | 6,332 | |||||||||
| Equity-accounted entities | 23 | 28 | 317 | 143 | 511 | |||||||||||||
| Developed | 554 | 405 | 1,237 | 817 | 543 | 182 | 167 | 117 | 4,022 | |||||||||
| Consolidated subsidiaries | 554 | 405 | 1,215 | 812 | 543 | 139 | 141 | 117 | 3,926 | |||||||||
| Equity-accounted entities | 22 | 5 | 43 | 26 | 96 | |||||||||||||
| Undeveloped | 170 | 196 | 882 | 344 | 583 | 430 | 206 | 10 | 2,821 | |||||||||
| Consolidated subsidiaries | 170 | 196 | 881 | 321 | 583 | 156 | 89 | 10 | 2,406 | |||||||||
| Equity-accounted entities | 1 | 23 | 274 | 117 | 415 | |||||||||||||
| 2011 | ||||||||||||||||||
| Estimated net proved hydrocarbons reserves | 707 | 630 | 2,052 | 1,104 | 950 | 886 | 624 | 133 | 7,086 | |||||||||
| Consolidated subsidiaries | 707 | 630 | 2,031 | 1,021 | 950 | 230 | 238 | 133 | 5,940 | |||||||||
| Equity-accounted entities | 21 | 83 | 656 | 386 | 1,146 | |||||||||||||
| Developed | 540 | 374 | 1,194 | 746 | 482 | 134 | 188 | 112 | 3,770 | |||||||||
| Consolidated subsidiaries | 540 | 374 | 1,175 | 742 | 482 | 129 | 162 | 112 | 3,716 | |||||||||
| Equity-accounted entities | 19 | 4 | 5 | 26 | 54 | |||||||||||||
| Undeveloped | 167 | 256 | 858 | 358 | 468 | 752 | 436 | 21 | 3,316 | |||||||||
| Consolidated subsidiaries | 167 | 256 | 856 | 279 | 468 | 101 | 76 | 21 | 2,224 | |||||||||
| Equity-accounted entities | 2 | 79 | 651 | 360 | 1,092 | |||||||||||||
| 2012 | ||||||||||||||||||
| Estimated net proved hydrocarbons reserves | 524 | 591 | 1,935 | 1,129 | 1,041 | 852 | 966 | 128 | 7,166 | |||||||||
| Consolidated subsidiaries | 524 | 591 | 1,915 | 1,048 | 1,041 | 184 | 236 | 128 | 5,667 | |||||||||
| Equity-accounted entities | 20 | 81 | 668 | 730 | 1,499 | |||||||||||||
| Developed | 406 | 349 | 1,100 | 716 | 458 | 190 | 190 | 107 | 3,516 | |||||||||
| Consolidated subsidiaries | 406 | 349 | 1,080 | 716 | 458 | 108 | 170 | 107 | 3,394 | |||||||||
| Equity-accounted entities | 20 | 82 | 20 | 122 | ||||||||||||||
| Undeveloped | 118 | 242 | 835 | 413 | 583 | 662 | 776 | 21 | 3,650 | |||||||||
| Consolidated subsidiaries | 118 | 242 | 835 | 332 | 583 | 76 | 66 | 21 | 2,273 | |||||||||
| Equity-accounted entities | 81 | 586 | 710 | 1,377 | ||||||||||||||
| 2013 | ||||||||||||||||||
| Estimated net proved hydrocarbons reserves | 499 | 557 | 1,802 | 1,230 | 1,035 | 270 | 966 | 176 | 6,535 | |||||||||
| Consolidated subsidiaries | 499 | 557 | 1,783 | 1,155 | 1,035 | 263 | 240 | 176 | 5,708 | |||||||||
| Equity-accounted entities | 19 | 75 | 7 | 726 | 827 | |||||||||||||
| Developed | 408 | 343 | 1,022 | 701 | 566 | 93 | 171 | 123 | 3,427 | |||||||||
| Consolidated subsidiaries | 408 | 343 | 1,003 | 701 | 566 | 90 | 153 | 123 | 3,387 | |||||||||
| Equity-accounted entities | 19 | 3 | 18 | 40 | ||||||||||||||
| Undeveloped | 91 | 214 | 780 | 529 | 469 | 177 | 795 | 53 | 3,108 | |||||||||
| Consolidated subsidiaries | 91 | 214 | 780 | 454 | 469 | 173 | 87 | 53 | 2,321 | |||||||||
| Equity-accounted entities | 75 | 4 | 708 | 787 | ||||||||||||||
| (a) Including approximately 769, 767 and 767 billion of cubic feet of natural gas held in storage at December 31, 2009, 2010 and 2011, respectively. |
- 31 -
Contents
Eni Fact Book Exploration & Production
| Estimated net proved liquids reserves by geographic area | (mmbbl) |
| (at December 31) | Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | |||||||||
| 2009 | ||||||||||||||||||
| Estimated net proved liquids reserves | 233 | 351 | 908 | 777 | 849 | 144 | 169 | 32 | 3,463 | |||||||||
| Consolidated subsidiaries | 233 | 351 | 895 | 770 | 849 | 94 | 153 | 32 | 3,377 | |||||||||
| Equity-accounted entities | 13 | 7 | 50 | 16 | 86 | |||||||||||||
| Developed | 141 | 218 | 669 | 548 | 291 | 52 | 93 | 23 | 2,035 | |||||||||
| Consolidated subsidiaries | 141 | 218 | 659 | 544 | 291 | 45 | 80 | 23 | 2,001 | |||||||||
| Equity-accounted entities | 10 | 4 | 7 | 13 | 34 | |||||||||||||
| Undeveloped | 92 | 133 | 239 | 229 | 558 | 92 | 76 | 9 | 1,428 | |||||||||
| Consolidated subsidiaries | 92 | 133 | 236 | 226 | 558 | 49 | 73 | 9 | 1,376 | |||||||||
| Equity-accounted entities | 3 | 3 | 43 | 3 | 52 | |||||||||||||
| 2010 | ||||||||||||||||||
| Estimated net proved liquids reserves | 248 | 349 | 997 | 756 | 788 | 183 | 273 | 29 | 3,623 | |||||||||
| Consolidated subsidiaries | 248 | 349 | 978 | 750 | 788 | 139 | 134 | 29 | 3,415 | |||||||||
| Equity-accounted entities | 19 | 6 | 44 | 139 | 208 | |||||||||||||
| Developed | 183 | 207 | 674 | 537 | 251 | 44 | 87 | 20 | 2,003 | |||||||||
| Consolidated subsidiaries | 183 | 207 | 656 | 533 | 251 | 39 | 62 | 20 | 1,951 | |||||||||
| Equity-accounted entities | 18 | 4 | 5 | 25 | 52 | |||||||||||||
| Undeveloped | 65 | 142 | 323 | 219 | 537 | 139 | 186 | 9 | 1,620 | |||||||||
| Consolidated subsidiaries | 65 | 142 | 322 | 217 | 537 | 100 | 72 | 9 | 1,464 | |||||||||
| Equity-accounted entities | 1 | 2 | 39 | 114 | 156 | |||||||||||||
| 2011 | ||||||||||||||||||
| Estimated net proved liquids reserves | 259 | 372 | 934 | 692 | 653 | 216 | 283 | 25 | 3,434 | |||||||||
| Consolidated subsidiaries | 259 | 372 | 917 | 670 | 653 | 106 | 132 | 25 | 3,134 | |||||||||
| Equity-accounted entities | 17 | 22 | 110 | 151 | 300 | |||||||||||||
| Developed | 184 | 195 | 638 | 487 | 215 | 34 | 117 | 25 | 1,895 | |||||||||
| Consolidated subsidiaries | 184 | 195 | 622 | 483 | 215 | 34 | 92 | 25 | 1,850 | |||||||||
| Equity-accounted entities | 16 | 4 | 25 | 45 | ||||||||||||||
| Undeveloped | 75 | 177 | 296 | 205 | 438 | 182 | 166 | 1,539 | ||||||||||
| Consolidated subsidiaries | 75 | 177 | 295 | 187 | 438 | 72 | 40 | 1,284 | ||||||||||
| Equity-accounted entities | 1 | 18 | 110 | 126 | 255 | |||||||||||||
| 2012 | ||||||||||||||||||
| Estimated net proved liquids reserves | 227 | 351 | 921 | 688 | 670 | 196 | 273 | 24 | 3,350 | |||||||||
| Consolidated subsidiaries | 227 | 351 | 904 | 672 | 670 | 82 | 154 | 24 | 3,084 | |||||||||
| Equity-accounted entities | 17 | 16 | 114 | 119 | 266 | |||||||||||||
| Developed | 165 | 180 | 601 | 456 | 203 | 49 | 128 | 24 | 1,806 | |||||||||
| Consolidated subsidiaries | 165 | 180 | 584 | 456 | 203 | 41 | 109 | 24 | 1,762 | |||||||||
| Equity-accounted entities | 17 | 8 | 19 | 44 | ||||||||||||||
| Undeveloped | 62 | 171 | 320 | 232 | 467 | 147 | 145 | 1,544 | ||||||||||
| Consolidated subsidiaries | 62 | 171 | 320 | 216 | 467 | 41 | 45 | 1,322 | ||||||||||
| Equity-accounted entities | 16 | 106 | 100 | 222 | ||||||||||||||
| 2013 | ||||||||||||||||||
| Estimated net proved liquids reserves | 220 | 330 | 846 | 738 | 679 | 129 | 263 | 22 | 3,227 | |||||||||
| Consolidated subsidiaries | 220 | 330 | 830 | 723 | 679 | 128 | 147 | 22 | 3,079 | |||||||||
| Equity-accounted entities | 16 | 15 | 1 | 116 | 148 | |||||||||||||
| Developed | 177 | 179 | 577 | 465 | 295 | 38 | 115 | 20 | 1,866 | |||||||||
| Consolidated subsidiaries | 177 | 179 | 561 | 465 | 295 | 38 | 96 | 20 | 1,831 | |||||||||
| Equity-accounted entities | 16 | 19 | 35 | |||||||||||||||
| Undeveloped | 43 | 151 | 269 | 273 | 384 | 91 | 148 | 2 | 1,361 | |||||||||
| Consolidated subsidiaries | 43 | 151 | 269 | 258 | 384 | 90 | 51 | 2 | 1,248 | |||||||||
| Equity-accounted entities | 15 | 1 | 97 | 113 | ||||||||||||||
i- 32 -
Contents
Eni Fact Book Exploration & Production
| Estimated net proved natural gas reserves by geographic area | (bcf) |
| (at December 31) | Italy (a) | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | |||||||||
| 2009 | ||||||||||||||||||
| Estimated net proved natural gas reserves | 2,704 | 1,380 | 5,908 | 2,212 | 2,139 | 2,301 | 631 | 575 | 17,850 | |||||||||
| Consolidated subsidiaries | 2,704 | 1,380 | 5,894 | 2,127 | 2,139 | 814 | 629 | 575 | 16,262 | |||||||||
| Equity-accounted entities | 14 | 85 | 1,487 | 2 | 1,588 | |||||||||||||
| Developed | 2,001 | 1,231 | 3,498 | 1,468 | 1,859 | 756 | 506 | 565 | 11,884 | |||||||||
| Consolidated subsidiaries | 2,001 | 1,231 | 3,486 | 1,463 | 1,859 | 539 | 506 | 565 | 11,650 | |||||||||
| Equity-accounted entities | 12 | 5 | 217 | 234 | ||||||||||||||
| Undeveloped | 703 | 149 | 2,410 | 744 | 280 | 1,545 | 125 | 10 | 5,966 | |||||||||
| Consolidated subsidiaries | 703 | 149 | 2,408 | 664 | 280 | 275 | 123 | 10 | 4,612 | |||||||||
| Equity-accounted entities | 2 | 80 | 1,270 | 2 | 1,354 | |||||||||||||
| 2010 | ||||||||||||||||||
| Estimated net proved natural gas reserves | 2,644 | 1,401 | 6,231 | 2,245 | 1,874 | 2,391 | 552 | 544 | 17,882 | |||||||||
| Consolidated subsidiaries | 2,644 | 1,401 | 6,207 | 2,127 | 1,874 | 871 | 530 | 544 | 16,198 | |||||||||
| Equity-accounted entities | 24 | 118 | 1,520 | 22 | 1,684 | |||||||||||||
| Developed | 2,061 | 1,103 | 3,122 | 1,554 | 1,621 | 774 | 437 | 539 | 11,211 | |||||||||
| Consolidated subsidiaries | 2,061 | 1,103 | 3,100 | 1,550 | 1,621 | 560 | 431 | 539 | 10,965 | |||||||||
| Equity-accounted entities | 22 | 4 | 214 | 6 | 246 | |||||||||||||
| Undeveloped | 583 | 298 | 3,109 | 691 | 253 | 1,617 | 115 | 5 | 6,671 | |||||||||
| Consolidated subsidiaries | 583 | 298 | 3,107 | 577 | 253 | 311 | 99 | 5 | 5,233 | |||||||||
| Equity-accounted entities | 2 | 114 | 1,306 | 16 | 1,438 | |||||||||||||
| 2011 | ||||||||||||||||||
| Estimated net proved natural gas reserves | 2,491 | 1,427 | 6,210 | 2,287 | 1,648 | 3,718 | 1,897 | 604 | 20,282 | |||||||||
| Consolidated subsidiaries | 2,491 | 1,425 | 6,190 | 1,949 | 1,648 | 685 | 590 | 604 | 15,582 | |||||||||
| Equity-accounted entities | 2 | 20 | 338 | 3,033 | 1,307 | 4,700 | ||||||||||||
| Developed | 1,977 | 995 | 3,087 | 1,441 | 1,480 | 552 | 393 | 491 | 10,416 | |||||||||
| Consolidated subsidiaries | 1,977 | 995 | 3,070 | 1,437 | 1,480 | 528 | 385 | 491 | 10,363 | |||||||||
| Equity-accounted entities | 17 | 4 | 24 | 8 | 53 | |||||||||||||
| Undeveloped | 514 | 432 | 3,123 | 846 | 168 | 3,166 | 1,504 | 113 | 9,866 | |||||||||
| Consolidated subsidiaries | 514 | 430 | 3,120 | 512 | 168 | 157 | 205 | 113 | 5,219 | |||||||||
| Equity-accounted entities | 2 | 3 | 334 | 3,009 | 1,299 | 4,647 | ||||||||||||
| 2012 | ||||||||||||||||||
| Estimated net proved natural gas reserves | 1,633 | 1,317 | 5,574 | 2,414 | 2,038 | 3,605 | 3,804 | 572 | 20,957 | |||||||||
| Consolidated subsidiaries | 1,633 | 1,317 | 5,558 | 2,061 | 2,038 | 562 | 449 | 572 | 14,190 | |||||||||
| Equity-accounted entities | 16 | 353 | 3,043 | 3,355 | 6,767 | |||||||||||||
| Developed | 1,325 | 925 | 2,736 | 1,429 | 1,401 | 774 | 340 | 459 | 9,389 | |||||||||
| Consolidated subsidiaries | 1,325 | 925 | 2,720 | 1,429 | 1,401 | 372 | 334 | 459 | 8,965 | |||||||||
| Equity-accounted entities | 16 | 402 | 6 | 424 | ||||||||||||||
| Undeveloped | 308 | 392 | 2,838 | 985 | 637 | 2,831 | 3,464 | 113 | 11,568 | |||||||||
| Consolidated subsidiaries | 308 | 392 | 2,838 | 632 | 637 | 190 | 115 | 113 | 5,225 | |||||||||
| Equity-accounted entities | 353 | 2,641 | 3,349 | 6,343 | ||||||||||||||
| 2013 | ||||||||||||||||||
| Estimated net proved natural gas reserves | 1,532 | 1,247 | 5,246 | 2,704 | 1,957 | 772 | 3,862 | 848 | 18,168 | |||||||||
| Consolidated subsidiaries | 1,532 | 1,247 | 5,231 | 2,374 | 1,957 | 744 | 509 | 848 | 14,442 | |||||||||
| Equity-accounted entities | 15 | 330 | 28 | 3,353 | 3,726 | |||||||||||||
| Developed | 1,266 | 904 | 2,447 | 1,295 | 1,488 | 300 | 315 | 561 | 8,576 | |||||||||
| Consolidated subsidiaries | 1,266 | 904 | 2,432 | 1,295 | 1,488 | 286 | 310 | 561 | 8,542 | |||||||||
| Equity-accounted entities | 15 | 14 | 5 | 34 | ||||||||||||||
| Undeveloped | 266 | 343 | 2,799 | 1,409 | 469 | 472 | 3,547 | 287 | 9,592 | |||||||||
| Consolidated subsidiaries | 266 | 343 | 2,799 | 1,079 | 469 | 458 | 199 | 287 | 5,900 | |||||||||
| Equity-accounted entities | 330 | 14 | 3,348 | 3,692 | ||||||||||||||
| (a) Including approximately 769, 767 and 767 billion of cubic feet of natural gas held in storage at December 31, 2009, 2010 and 2011, respectively. |
- 33 -
Contents
Eni Fact Book Exploration & Production
Production of oil and natural gas by Country (a) |
(kboe/d) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 169 | 183 | 186 | 189 | 186 | |||||
| Rest of Europe | 247 | 222 | 216 | 178 | 155 | |||||
| Croatia | 17 | 8 | 5 | 5 | 8 | |||||
| Norway | 126 | 123 | 131 | 126 | 106 | |||||
| United Kingdom | 104 | 91 | 80 | 47 | 41 | |||||
| North Africa | 573 | 602 | 438 | 586 | 556 | |||||
| Algeria | 83 | 77 | 72 | 78 | 88 | |||||
| Egypt | 230 | 232 | 236 | 235 | 227 | |||||
| Libya | 244 | 273 | 112 | 258 | 228 | |||||
| Tunisia | 16 | 20 | 18 | 15 | 13 | |||||
| Sub-Saharan Africa | 360 | 400 | 370 | 345 | 332 | |||||
| Angola | 130 | 118 | 102 | 87 | 87 | |||||
| Congo | 102 | 110 | 108 | 104 | 120 | |||||
| Nigeria | 128 | 172 | 160 | 154 | 125 | |||||
| Kazakhstan | 115 | 108 | 106 | 102 | 100 | |||||
| Rest of Asia | 135 | 131 | 112 | 129 | 144 | |||||
| China | 8 | 7 | 8 | 9 | 8 | |||||
| India | 1 | 8 | 4 | 2 | 1 | |||||
| Indonesia | 21 | 19 | 18 | 18 | 16 | |||||
| Iran | 35 | 21 | 6 | 3 | 4 | |||||
| Iraq | 5 | 7 | 18 | 22 | ||||||
| Pakistan | 58 | 59 | 58 | 57 | 52 | |||||
| Russia | 11 | 31 | ||||||||
| Turkmenistan | 12 | 12 | 11 | 11 | 10 | |||||
| America | 153 | 143 | 125 | 135 | 116 | |||||
| Brazil | 1 | 2 | ||||||||
| Ecuador | 14 | 11 | 7 | 25 | 13 | |||||
| Trinidad & Tobago | 12 | 12 | 10 | 11 | 11 | |||||
| United States | 119 | 109 | 98 | 88 | 82 | |||||
| Venezuela | 8 | 11 | 9 | 9 | 10 | |||||
| Australia and Oceania | 17 | 26 | 28 | 37 | 30 | |||||
| Australia | 17 | 26 | 28 | 37 | 30 | |||||
| Total outside Italy | 1,600 | 1,632 | 1,395 | 1,512 | 1,433 | |||||
| 1,769 | 1,815 | 1,581 | 1,701 | 1,619 | ||||||
| of which equity-accounted entities | 23 | 25 | 26 | 35 | 54 | |||||
| Angola | 3 | 3 | 4 | 2 | 3 | |||||
| Brazil | 1 | 2 | ||||||||
| Indonesia | 6 | 6 | 6 | 6 | 5 | |||||
| Russia | 11 | 31 | ||||||||
| Tunisia | 6 | 5 | 6 | 5 | 5 | |||||
| Venezuela | 8 | 11 | 9 | 9 | 10 |
Oil and natural gas production sold |
(mmboe) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Oil and natural gas production | 645.7 | 662.3 | 577.0 | 622.6 | 591.0 | ||||||||||||
| Change in inventories other | (3.8 | ) | (3.4 | ) | (7.4 | ) | 1.6 | (5.7 | ) | ||||||||
| Own consumption of gas | (19.1 | ) | (20.9 | ) | (21.1 | ) | (25.5 | ) | (30.0 | ) | |||||||
| Oil and natural gas production sold (b) | 622.8 | 638.0 | 548.5 | 598.7 | 555.3 | ||||||||||||
| Oil | (mmbbl) | 365.20 | 361.30 | 302.61 | 325.41 | 299.54 | |||||||||||
| - of which to R&M Division | 224.98 | 206.41 | 190.65 | 185.48 | 178.83 | ||||||||||||
| Natural gas | (bcf) | 1,479 | 1,536 | 1,367 | 1,501 | 1,405 | |||||||||||
| - of which to G&P Division | 444 | 432 | 423 | 435 | 385 | ||||||||||||
| (a) Includes
volumes of gas consumed in operations (451, 383, 321, 318
and 300 mmcf/d, in 2013, 2012, 2011, 2010 and 2009,
respectively). (b) Includes 17.1 mmboe of equity-accounted entities production sold in 2013 (11.2, 7.7, 8 and 7.1 mmboe in 2012, 2011, 2010 and 2009, respectively). |
- 34 -
Contents
Eni Fact Book Exploration & Production
Liquids production by Country |
(kbbl/d) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 56 | 61 | 64 | 63 | 71 | |||||
| Rest of Europe | 133 | 121 | 120 | 95 | 77 | |||||
| Norway | 78 | 74 | 80 | 74 | 60 | |||||
| United Kingdom | 55 | 47 | 40 | 21 | 17 | |||||
| North Africa | 292 | 301 | 209 | 271 | 252 | |||||
| Algeria | 80 | 74 | 69 | 71 | 73 | |||||
| Egypt | 91 | 96 | 91 | 88 | 93 | |||||
| Libya | 108 | 116 | 36 | 101 | 76 | |||||
| Tunisia | 13 | 15 | 13 | 11 | 10 | |||||
| Sub-Saharan Africa | 312 | 321 | 278 | 247 | 242 | |||||
| Angola | 125 | 113 | 95 | 80 | 79 | |||||
| Congo | 97 | 98 | 87 | 82 | 90 | |||||
| Nigeria | 90 | 110 | 96 | 85 | 73 | |||||
| Kazakhstan | 70 | 65 | 64 | 61 | 61 | |||||
| Rest of Asia | 57 | 48 | 34 | 44 | 49 | |||||
| China | 7 | 6 | 7 | 8 | 7 | |||||
| India | 1 | |||||||||
| Indonesia | 2 | 2 | 2 | 2 | 2 | |||||
| Iran | 35 | 21 | 6 | 3 | 4 | |||||
| Iraq | 5 | 7 | 18 | 22 | ||||||
| Pakistan | 1 | 1 | 1 | 1 | ||||||
| Russia | 2 | 5 | ||||||||
| Turkmenistan | 12 | 12 | 11 | 10 | 9 | |||||
| America | 79 | 71 | 65 | 83 | 71 | |||||
| Brazil | 1 | 2 | ||||||||
| Ecuador | 14 | 11 | 7 | 25 | 13 | |||||
| United States | 57 | 49 | 48 | 47 | 48 | |||||
| Venezuela | 8 | 11 | 9 | 9 | 10 | |||||
| Australia and Oceania | 8 | 9 | 11 | 18 | 10 | |||||
| Australia | 8 | 9 | 11 | 18 | 10 | |||||
| Total outside Italy | 951 | 936 | 781 | 819 | 762 | |||||
| 1,007 | 997 | 845 | 882 | 833 | ||||||
| of which equity-accounted entities | 17 | 19 | 19 | 20 | 20 | |||||
| Angola | 3 | 3 | 3 | 2 | ||||||
| Brazil | 1 | 2 | ||||||||
| Indonesia | 1 | 1 | 1 | 1 | 1 | |||||
| Russia | 2 | 5 | ||||||||
| Tunisia | 5 | 4 | 5 | 4 | 4 | |||||
| Venezuela | 8 | 11 | 9 | 9 | 10 |
Oil and natural gas production available for sale (a) |
(kboe/d) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 165 | 178 | 181 | 184 | 179 | |||||
| Rest of Europe | 239 | 214 | 209 | 171 | 149 | |||||
| North Africa | 554 | 582 | 420 | 561 | 528 | |||||
| Sub-Saharan Africa | 349 | 386 | 354 | 327 | 307 | |||||
| Kazakhstan | 113 | 104 | 102 | 98 | 96 | |||||
| Rest of Asia | 130 | 126 | 106 | 121 | 135 | |||||
| America | 150 | 141 | 124 | 133 | 114 | |||||
| Australia and Oceania | 16 | 26 | 27 | 36 | 29 | |||||
| 1,716 | 1,757 | 1,523 | 1,631 | 1,537 | ||||||
| of which equity-accounted entities | 21 | 23 | 23 | 33 | 50 | |||||
| North Africa | 5 | 5 | 5 | 5 | 4 | |||||
| Sub-Saharan Africa | 3 | 3 | 3 | 2 | 2 | |||||
| Rest of Asia | 5 | 5 | 4 | 15 | 34 | |||||
| America | 8 | 10 | 11 | 11 | 10 |
| (a) Do not include natural gas consumed in operation. |
| - 35 - |
Contents
Eni Fact Book Exploration & Production
Natural gas production by Country (a) |
(mmcf/d) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 652.6 | 673.2 | 674.3 | 695.1 | 630.2 | |||||
| Rest of Europe | 655.5 | 559.2 | 537.9 | 458.9 | 429.6 | |||||
| Croatia | 95.5 | 45.3 | 29.9 | 25.4 | 43.0 | |||||
| Norway | 273.7 | 271.6 | 284.0 | 289.6 | 250.5 | |||||
| Ukraine | 0.5 | |||||||||
| United Kingdom | 286.3 | 242.3 | 224.0 | 143.4 | 136.1 | |||||
| North Africa | 1,614.2 | 1,673.2 | 1,271.5 | 1,733.5 | 1,674.2 | |||||
| Algeria | 19.7 | 20.2 | 19.0 | 40.1 | 81.6 | |||||
| Egypt | 793.7 | 755.1 | 800.7 | 805.9 | 734.6 | |||||
| Libya | 780.4 | 871.1 | 423.2 | 863.5 | 836.7 | |||||
| Tunisia | 20.4 | 26.8 | 28.6 | 24.0 | 21.3 | |||||
| Sub-Saharan Africa | 274.3 | 441.5 | 508.0 | 538.7 | 495.9 | |||||
| Angola | 29.3 | 31.9 | 34.7 | 39.2 | 46.9 | |||||
| Congo | 27.3 | 67.9 | 119.1 | 120.5 | 161.8 | |||||
| Nigeria | 217.7 | 341.7 | 354.2 | 379.0 | 287.2 | |||||
| Kazakhstan | 259.0 | 237.0 | 231.0 | 221.7 | 213.5 | |||||
| Rest of Asia | 444.8 | 463.9 | 430.1 | 468.5 | 520.5 | |||||
| China | 8.2 | 6.7 | 5.0 | 4.4 | 3.4 | |||||
| India | 3.7 | 36.6 | 19.6 | 10.5 | 7.2 | |||||
| Indonesia | 104.8 | 94.4 | 84.3 | 84.9 | 79.2 | |||||
| Pakistan | 328.1 | 326.2 | 321.2 | 310.4 | 283.1 | |||||
| Russia | 52.4 | 141.6 | ||||||||
| Turkmenistan | 5.9 | 6.0 | ||||||||
| America | 424.7 | 396.0 | 334.0 | 283.5 | 245.3 | |||||
| Trinidad & Tobago | 67.0 | 63.6 | 56.7 | 58.5 | 58.6 | |||||
| United States | 357.7 | 332.4 | 277.3 | 225.0 | 185.9 | |||||
| Venezuela | 0.8 | |||||||||
| Australia and Oceania | 48.6 | 95.7 | 97.8 | 100.8 | 110.4 | |||||
| Australia | 48.6 | 95.7 | 97.8 | 100.8 | 110.4 | |||||
| Total outside Italy | 3,721.1 | 3,866.5 | 3,410.3 | 3,805.6 | 3,689.4 | |||||
| 4,373.7 | 4,539.7 | 4,084.6 | 4,500.7 | 4,319.6 | ||||||
| of which equity-accounted entities | 38.3 | 35.6 | 34.0 | 88.6 | 186.3 | |||||
| Angola | 0.7 | 0.8 | 1.9 | 4.4 | 14.2 | |||||
| Indonesia | 32.1 | 28.9 | 25.7 | 26.0 | 24.2 | |||||
| Russia | 52.4 | 141.6 | ||||||||
| Tunisia | 5.5 | 5.9 | 6.4 | 5.3 | 5.5 | |||||
| Ukraine | 0.5 |
Natural gas production available for sale (b) |
(mmcf/d) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 630 | 648 | 648 | 667 | 593 | |||||
| Rest of Europe | 608 | 517 | 498 | 421 | 395 | |||||
| North Africa | 1,503 | 1,559 | 1,169 | 1,592 | 1,514 | |||||
| Sub-Saharan Africa | 213 | 365 | 422 | 444 | 356 | |||||
| Kazakhstan | 241 | 221 | 212 | 202 | 195 | |||||
| Rest of Asia | 417 | 436 | 398 | 423 | 476 | |||||
| America | 416 | 385 | 323 | 273 | 234 | |||||
| Australia and Oceania | 46 | 91 | 93 | 96 | 105 | |||||
| 4,074 | 4,222 | 3,763 | 4,118 | 3,868 | ||||||
| of which equity-accounted entities | 29 | 27 | 24 | 71 | 165 | |||||
| North Africa | 3 | 3 | 4 | 3 | 4 | |||||
| Sub-Saharan Africa | 7 | |||||||||
| Rest of Asia | 26 | 24 | 20 | 68 | 154 |
| (a) Includes
volumes of gas consumed in operations (451, 383, 321, 318
and 300 mmcf/d, in 2013, 2012, 2011, 2010 and 2009,
respectively). (b) Do not include natural gas consumed in operations. |
| - 36 - |
Contents
Eni Fact Book Exploration & Production
| Average realizations | 2009 |
2010 |
2011 |
2012 |
2013 |
| CONS | JV | CONS | JV | CONS | JV | CONS | JV | CONS | JV | |||||||||||
| Liquids | ||||||||||||||||||||
| ($/bbl) |
| Italy | 56.02 | 72.19 | 101.20 | 100.52 | 98.50 | |||||||||||||||
| Rest of Europe | 56.46 | 67.26 | 97.56 | 97.18 | 100.67 | 93.11 | 98.97 | |||||||||||||
| North Africa | 56.42 | 14.60 | 70.96 | 16.09 | 97.63 | 17.98 | 103.63 | 17.93 | 100.42 | 17.96 | ||||||||||
| Sub-Saharan Africa | 59.75 | 56.85 | 78.23 | 77.78 | 110.09 | 108.92 | 108.34 | 112.28 | 105.13 | |||||||||||
| Kazakhstan | 52.34 | 66.74 | 98.68 | 102.25 | 99.37 | |||||||||||||||
| Rest of Asia | 55.34 | 9.01 | 75.20 | 57.05 | 101.09 | 74.98 | 103.44 | 40.36 | 99.69 | 33.87 | ||||||||||
| America | 55.66 | 56.41 | 72.84 | 71.70 | 101.15 | 93.03 | 85.94 | 93.45 | 85.27 | 93.32 | ||||||||||
| Australia and Oceania | 50.40 | 73.00 | 98.05 | 102.06 | 98.72 | |||||||||||||||
| 57.02 | 44.43 | 72.95 | 58.86 | 102.47 | 84.78 | 103.06 | 77.94 | 100.20 | 64.92 | |||||||||||
| Natural gas | ||||||||||||||||||||
| ($/kcf) | ||||||||||||||||||||
| Italy | 9.01 | 8.71 | 11.56 | 10.68 | 11.65 | |||||||||||||||
| Rest of Europe | 7.06 | 7.40 | 9.72 | 10.65 | 10.13 | 11.64 | 10.62 | |||||||||||||
| North Africa | 5.79 | 6.87 | 5.95 | 5.39 | 8.13 | 4.91 | 7.96 | 6.29 | ||||||||||||
| Sub-Saharan Africa | 1.66 | 1.87 | 1.97 | 2.16 | 2.16 | |||||||||||||||
| Kazakhstan | 0.45 | 0.49 | 0.57 | 0.67 | 0.64 | |||||||||||||||
| Rest of Asia | 4.09 | 7.44 | 4.35 | 9.87 | 5.27 | 15.68 | 5.94 | 6.17 | 5.83 | 3.49 | ||||||||||
| America | 4.05 | 4.70 | 4.02 | 2.90 | 3.37 | |||||||||||||||
| Australia and Oceania | 8.14 | 7.40 | 7.38 | 7.73 | 7.80 | |||||||||||||||
| 5.62 | 6.81 | 6.01 | 8.73 | 6.44 | 13.89 | 7.14 | 6.16 | 7.41 | 4.00 | |||||||||||
| Hydrocarbons | ||||||||||||||||||||
| ($/boe) | ||||||||||||||||||||
| Italy | 53.17 | 56.60 | 77.26 | 73.24 | 77.56 | |||||||||||||||
| Rest of Europe | 49.53 | 56.00 | 79.03 | 66.14 | 80.79 | 69.05 | 79.14 | |||||||||||||
| North Africa | 45.47 | 13.19 | 55.06 | 13.53 | 64.85 | 20.87 | 73.06 | 19.45 | 70.51 | 21.47 | ||||||||||
| Sub-Saharan Africa | 54.61 | 56.85 | 66.35 | 77.78 | 88.02 | 108.92 | 84.93 | 112.28 | 85.08 | |||||||||||
| Kazakhstan | 33.65 | 42.24 | 62.87 | 64.92 | 62.02 | |||||||||||||||
| Rest of Asia | 38.21 | 41.80 | 42.45 | 55.04 | 51.51 | 85.80 | 57.98 | 34.78 | 62.59 | 21.46 | ||||||||||
| America | 39.29 | 56.32 | 47.84 | 71.70 | 60.28 | 93.03 | 54.61 | 93.45 | 57.89 | 93.32 | ||||||||||
| Australia and Oceania | 48.63 | 52.51 | 61.00 | 73.82 | 61.79 | |||||||||||||||
| 46.90 | 42.82 | 55.59 | 56.10 | 72.20 | 83.15 | 73.65 | 59.25 | 72.97 | 37.57 | |||||||||||
| Eni’s Group | 2009 | 2010 | 2011 | 2012 | 2013 | |||||||||||||||
| Liquids ($/bbl) | 56.95 | 72.76 | 102.11 | 102.58 | 99.44 | |||||||||||||||
| Natural gas ($/kcf) | 5.62 | 6.02 | 6.48 | 7.12 | 7.26 | |||||||||||||||
| Hydrocarbons ($/boe) | 46.90 | 55.60 | 72.26 | 73.39 | 71.87 | |||||||||||||||
Net developed and undeveloped acreage |
(square kilometers) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Europe | 31,607 | 29,079 | 26,023 | 27,423 | 37,018 | |||||
| Italy | 22,038 | 19,097 | 16,872 | 17,556 | 17,282 | |||||
| Rest of Europe | 9,569 | 9,982 | 9,151 | 9,867 | 19,736 | |||||
| Africa | 158,749 | 152,671 | 137,220 | 142,796 | 137,096 | |||||
| North Africa | 46,011 | 44,277 | 30,532 | 21,390 | 20,412 | |||||
| Sub-Saharan Africa | 112,738 | 108,394 | 106,688 | 121,406 | 116,684 | |||||
| Asia | 125,641 | 112,745 | 55,284 | 58,042 | 79,314 | |||||
| Kazakhstan | 880 | 880 | 880 | 869 | 869 | |||||
| Rest of Asia | 124,761 | 111,865 | 54,404 | 57,173 | 78,445 | |||||
| America | 11,523 | 11,187 | 10,209 | 9,075 | 9,206 | |||||
| Australia and Oceania | 20,342 | 15,279 | 25,685 | 13,834 | 13,622 | |||||
| Total | 347,862 | 320,961 | 254,421 | 251,170 | 276,256 |
- 37 -
Contents
Eni Fact Book Exploration & Production
| Principal oil and natural gas interests at December 31, 2013 |
Commencement of operations |
Number of interests |
Gross developed (a) (b) acreage |
Net developed (a) (b) acreage |
Gross undeveloped (a) acreage |
Net undeveloped (a) acreage |
Type of fields/acreage |
Number of producing fields |
Number of other fields |
||||||||||
| EUROPE | 264 | 16,170 | 10,907 | 40,753 | 26,111 | 121 | 94 | |||||||||||
| Italy | 1926 | 151 | 10,663 | 8,948 | 10,815 | 8,334 | Onshore/Offshore | 81 | 68 | |||||||||
| Rest of Europe | 113 | 5,507 | 1,959 | 29,938 | 17,777 | 40 | 26 | |||||||||||
| Croatia | 1996 | 2 | 1,975 | 987 | Offshore | 9 | 3 | |||||||||||
| Cyprus | 2013 | 3 | 12,523 | 10,018 | Offshore | |||||||||||||
| Norway | 1965 | 57 | 2,264 | 346 | 9,302 | 3,433 | Offshore | 18 | 19 | |||||||||
| Poland | 2010 | 2 | 969 | 969 | Onshore | |||||||||||||
| Ukraine | 2011 | 12 | 50 | 30 | 3,840 | 1,911 | Onshore | 1 | ||||||||||
| United Kingdom | 1964 | 34 | 1,218 | 596 | 223 | 42 | Offshore | 13 | 3 | |||||||||
| Other Countries | 3 | 3,081 | 1,404 | Offshore | ||||||||||||||
| AFRICA | 280 | 66,341 | 20,131 | 185,574 | 116,965 | 275 | 130 | |||||||||||
| North Africa | 116 | 32,560 | 14,150 | 14,334 | 6,262 | 110 | 50 | |||||||||||
| Algeria | 1981 | 42 | 3,223 | 1,148 | 187 | 31 | Onshore | 37 | 6 | |||||||||
| Egypt | 1954 | 53 | 4,926 | 1,778 | 5,460 | 1,887 | Onshore/Offshore | 41 | 24 | |||||||||
| Libya | 1959 | 10 | 17,947 | 8,950 | 8,687 | 4,344 | Onshore/Offshore | 11 | 15 | |||||||||
| Tunisia | 1961 | 11 | 6,464 | 2,274 | Onshore/Offshore | 21 | 5 | |||||||||||
| Sub-Saharan Africa | 164 | 33,781 | 5,981 | 171,240 | 110,703 | 165 | 80 | |||||||||||
| Angola | 1980 | 71 | 6,498 | 802 | 14,991 | 3,641 | Onshore/Offshore | 50 | 32 | |||||||||
| Congo | 1968 | 28 | 1,835 | 1,017 | 2,890 | 2,108 | Onshore/Offshore | 24 | 6 | |||||||||
| Dem. Republic of Congo | 2010 | 1 | 478 | 263 | Onshore | |||||||||||||
| Gabon | 2008 | 6 | 7,615 | 7,615 | Onshore/Offshore | |||||||||||||
| Ghana | 2009 | 2 | 4,676 | 1,664 | Offshore | 2 | ||||||||||||
| Kenya | 2012 | 4 | 46,410 | 38,930 | Offshore | |||||||||||||
| Liberia | 2012 | 3 | 7,365 | 1,841 | Offshore | |||||||||||||
| Mozambique | 2007 | 1 | 10,207 | 5,103 | Offshore | 8 | ||||||||||||
| Nigeria | 1962 | 41 | 25,448 | 4,162 | 10,838 | 3,484 | Onshore/Offshore | 91 | 32 | |||||||||
| Togo | 2010 | 2 | 6,192 | 6,192 | Offshore | |||||||||||||
| Other Countries | 5 | 59,578 | 39,862 | Onshore | ||||||||||||||
| ASIA | 70 | 19,013 | 6,650 | 168,024 | 72,664 | 31 | 25 | |||||||||||
| Kazakhstan | 1992 | 6 | 2,391 | 442 | 2,542 | 427 | Onshore/Offshore | 1 | 5 | |||||||||
| Rest of Asia | 64 | 16,622 | 6,208 | 165,482 | 72,237 | 30 | 20 | |||||||||||
| China | 1984 | 8 | 76 | 19 | 5,130 | 5,130 | Offshore | 4 | 1 | |||||||||
| India | 2005 | 11 | 206 | 109 | 16,546 | 6,058 | Onshore/Offshore | 4 | 3 | |||||||||
| Indonesia | 2001 | 13 | 3,220 | 1,218 | 25,779 | 17,991 | Onshore/Offshore | 7 | 15 | |||||||||
| Iran | 1957 | 4 | 1,456 | 820 | Onshore/Offshore | 1 | ||||||||||||
| Iraq | 2009 | 1 | 1,074 | 446 | Onshore | 1 | ||||||||||||
| Pakistan | 2000 | 18 | 10,390 | 3,396 | 17,731 | 6,939 | Onshore/Offshore | 11 | 1 | |||||||||
| Russia | 2007 | 3 | 62,592 | 20,862 | Offshore | |||||||||||||
| Timor Leste | 2006 | 1 | 1,538 | 1,230 | Offshore | |||||||||||||
| Turkmenistan | 2008 | 1 | 200 | 200 | Onshore | 2 | ||||||||||||
| Vietnam | 2013 | 3 | 21,566 | 10,783 | Offshore | |||||||||||||
| Other Countries | 1 | 14,600 | 3,244 | Offshore | ||||||||||||||
| AMERICA | 348 | 4,809 | 3,141 | 15,268 | 6,065 | 65 | 18 | |||||||||||
| Ecuador | 1988 | 1 | 1,985 | 1,985 | Onshore | 1 | 1 | |||||||||||
| Greenland | 2013 | 1 | 2,630 | 920 | Offshore | |||||||||||||
| Trinidad & Tobago | 1970 | 1 | 382 | 66 | Offshore | 7 | ||||||||||||
| United States | 1968 | 331 | 1,640 | 822 | 5,089 | 3,021 | Onshore/Offshore | 55 | 14 | |||||||||
| Venezuela | 1998 | 6 | 802 | 268 | 2,002 | 798 | Onshore/Offshore | 2 | 2 | |||||||||
| Other Countries | 8 | 5,547 | 1,326 | Offshore | 1 | |||||||||||||
| AUSTRALIA AND OCEANIA | 14 | 1,140 | 709 | 22,436 | 12,913 | 3 | 2 | |||||||||||
| Australia | 2001 | 14 | 1,140 | 709 | 22,436 | 12,913 | Offshore | 3 | 2 | |||||||||
| Total | 976 | 107,473 | 41,538 | 432,055 | 234,718 | 495 | 269 | |||||||||||
| (a) Square kilometers. (b) Developed acreage refers to those leases in which at least a portion of the area is in production or encompasses proved developed reserves. |
- 38 -
Contents
Eni Fact Book Exploration & Production
Capital expenditure |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Acquisition of proved and unproved properties | 697 | 754 | 43 | 109 | ||||||
| North Africa | 351 | 57 | 14 | 109 | ||||||
| Sub-Saharan Africa | 73 | 697 | 27 | |||||||
| Rest of Asia | 94 | |||||||||
| America | 179 | 2 | ||||||||
| Exploration | 1,228 | 1,012 | 1,210 | 1,850 | 1,669 | |||||
| Italy | 40 | 34 | 38 | 32 | 32 | |||||
| Rest of Europe | 113 | 114 | 100 | 151 | 357 | |||||
| North Africa | 317 | 84 | 128 | 153 | 95 | |||||
| Sub-Saharan Africa | 284 | 406 | 482 | 1,142 | 757 | |||||
| Kazakhstan | 20 | 6 | 6 | 3 | 1 | |||||
| Rest of Asia | 159 | 223 | 156 | 193 | 233 | |||||
| America | 243 | 119 | 60 | 80 | 110 | |||||
| Australia and Oceania | 52 | 26 | 240 | 96 | 84 | |||||
| Development | 7,478 | 8,578 | 7,357 | 8,304 | 8,580 | |||||
| Italy | 689 | 630 | 720 | 744 | 743 | |||||
| Rest of Europe | 673 | 863 | 1,596 | 2,008 | 1,768 | |||||
| North Africa | 1,381 | 2,584 | 1,380 | 1,299 | 808 | |||||
| Sub-Saharan Africa | 2,105 | 1,818 | 1,521 | 1,931 | 2,675 | |||||
| Kazakhstan | 1,083 | 1,030 | 897 | 719 | 658 | |||||
| Rest of Asia | 406 | 311 | 361 | 641 | 749 | |||||
| America | 706 | 1,187 | 831 | 953 | 1,127 | |||||
| Australia and Oceania | 435 | 155 | 51 | 9 | 52 | |||||
| Other expenditure | 83 | 100 | 114 | 110 | 117 | |||||
| 9,486 | 9,690 | 9,435 | 10,307 | 10,475 |
Reserves life index |
(years) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 11.4 | 10.9 | 10.4 | 7.6 | 7.3 | |||||
| Rest of Europe | 6.6 | 7.4 | 8.0 | 9.0 | 9.8 | |||||
| North Africa | 9.3 | 9.6 | 12.8 | 9.0 | 8.9 | |||||
| Sub-Saharan Africa | 8.9 | 7.9 | 8.2 | 8.9 | 10.2 | |||||
| Kazakhstan | 29.0 | 28.7 | 24.5 | 28.1 | 28.8 | |||||
| Rest of Asia | 11.1 | 12.8 | 21.7 | 18.1 | 5.1 | |||||
| America | 5.0 | 7.2 | 13.6 | 19.7 | 23.0 | |||||
| Australia and Oceania | 21.5 | 13.1 | 12.8 | 9.8 | 16.0 | |||||
| 10.2 | 10.3 | 12.3 | 11.5 | 11.1 |
Reserves replacement ratio |
2009 |
2010 |
2011 |
2012 |
2013 |
| (%) | organic | all sources | organic | all sources | organic | all sources | organic | all sources | organic | all sources | ||||||||||
| Italy | 135 | 136 | 121 | 107 | 72 | 75 | 34 | 62 | 62 | ||||||||||||
| Rest of Europe | 173 | 174 | 103 | 102 | 140 | 136 | 37 | 37 | 63 | 40 | |||||||||||
| North Africa | 99 | 99 | 167 | 167 | 58 | 58 | 40 | 40 | 32 | 34 | |||||||||||
| Sub-Saharan Africa | 105 | 106 | 91 | 90 | 63 | 58 | 138 | 117 | 183 | 183 | |||||||||||
| Kazakhstan | 467 | 337 | 83 | 83 | |||||||||||||||||
| Rest of Asia | 42 | 211 | 212 | 768 | 771 | 12 | 12 | 232 | |||||||||||||
| America | 102 | 144 | 274 | 273 | 646 | 647 | 855 | 786 | 102 | 102 | |||||||||||
| Australia and Oceania | 117 | 112 | 6 | 5 | 155 | 163 | 51 | 51 | 536 | 536 | |||||||||||
| 93 | 96 | 127 | 125 | 143 | 142 | 147 | 107 | 105 | (7 | ) |
- 39 -
Contents
Eni Fact Book Exploration & Production
| Exploratory wells activity |
Net wells completed |
Wells in progress (a) |
|||
2011 |
2012 |
2013 |
2013 |
|||||
| (units) | Productive |
Dry (b) |
Productive |
Dry (b) |
Productive |
Dry (b) |
Gross |
Net |
||||||||
| Italy | 1.0 | 5.0 | 3.4 | |||||||||||||
| Rest of Europe | 0.3 | 0.7 | 1.0 | 1.0 | 3.4 | 17.0 | 6.2 | |||||||||
| North Africa | 6.2 | 3.4 | 6.3 | 11.3 | 4.9 | 5.4 | 14.0 | 9.8 | ||||||||
| Sub-Saharan Africa | 0.6 | 2.6 | 4.5 | 5.1 | 3.2 | 6.6 | 60.0 | 24.3 | ||||||||
| Kazakhstan | 0.8 | 0.4 | 6.0 | 1.1 | ||||||||||||
| Rest of Asia | 0.2 | 7.6 | 0.5 | 0.6 | 4.3 | 2.7 | 21.0 | 8.2 | ||||||||
| America | 2.5 | 0.1 | 0.2 | 1.2 | 4.0 | 1.2 | ||||||||||
| Australia and Oceania | 1.4 | 0.4 | 0.5 | 2.0 | 0.8 | |||||||||||
| 9.8 | 15.7 | 13.3 | 19.3 | 12.6 | 20.2 | 129.0 | 55.0 |
| Development wells activity |
Net wells completed |
Wells in progress (a) |
|||
2011 |
2012 |
2013 |
2013 |
|||||
| (units) | Productive |
Dry (b) |
Productive |
Dry (b) |
Productive |
Dry (b) |
Gross |
Net |
||||||||
| Italy | 25.3 | 18.0 | 1.0 | 7.4 | 1.0 | 3.0 | 3.0 | |||||||||
| Rest of Europe | 3.3 | 0.3 | 2.9 | 0.6 | 6.3 | 31.0 | 5.9 | |||||||||
| North Africa | 55.9 | 1.1 | 46.0 | 1.6 | 61.6 | 3.3 | 20.0 | 11.3 | ||||||||
| Sub-Saharan Africa | 28.2 | 1.0 | 27.4 | 0.3 | 26.3 | 1.2 | 20.0 | 5.1 | ||||||||
| Kazakhstan | 1.3 | 1.4 | 0.3 | 17.0 | 3.1 | |||||||||||
| Rest of Asia | 39.2 | 2.5 | 41.2 | 0.1 | 61.7 | 4.3 | 26.0 | 11.4 | ||||||||
| America | 27.6 | 23.1 | 13.8 | 12.0 | 4.8 | |||||||||||
| Australia and Oceania | 0.4 | 1.0 | 0.4 | |||||||||||||
| 181.2 | 4.9 | 160.0 | 3.6 | 177.4 | 9.8 | 130.0 | 45.0 |
| Productive oil and gas wells (c) |
2013 |
||
Oil wells |
Natural gas wells |
|||
| (units) | Gross |
Net |
Gross |
Net |
||||
| Italy | 240.0 | 194.1 | 615.0 | 531.5 | ||||
| Rest of Europe | 415.0 | 60.8 | 182.0 | 90.2 | ||||
| North Africa | 1,590.0 | 820.4 | 199.0 | 85.8 | ||||
| Sub-Saharan Africa | 2,908.0 | 585.9 | 339.0 | 25.5 | ||||
| Kazakhstan | 104.0 | 29.7 | ||||||
| Rest of Asia | 644.0 | 417.3 | 897.0 | 341.6 | ||||
| America | 191.0 | 105.4 | 352.0 | 129.1 | ||||
| Australia and Oceania | 7.0 | 3.8 | 14.0 | 3.3 | ||||
| 6,099.0 | 2,217.4 | 2,598.0 | 1,207.0 |
| (a) Includes
temporary suspended wells pending further evaluation. (b) A dry well is an exploratory, development, or extension well that proves to be incapable of producing either oil or gas sufficient quantities to justify completion as an oil or gas well. (c) Includes 2,162 gross (761.2 net) multiple completion wells (more than one producing into the same well bore). Productive wells are producing wells and wells capable of production. One or more completions in the same bore hole are counted as one well. |
- 40 -
Contents
Eni Fact Book Gas & Power
Gas & Power |
Key performance indicators (*) |
2009 |
2010 |
2011 |
2012 |
2013 |
||||||||
| Employees injury frequency rate | (No. of accidents per million of worked hours) | 3.15 | 3.97 | 2.44 | 1.84 | 1.31 | |||||||||||
| Contractors injury frequency rate | 2.32 | 4.00 | 5.22 | 3.64 | 1.81 | ||||||||||||
| Net sales from operations (a) | (euro million) | 29,272 | 27,806 | 33,093 | 36,200 | 32,124 | |||||||||||
| Operating profit | 1,914 | 896 | (326 | ) | (3,219 | ) | (2,992 | ) | |||||||||
| Adjusted operating profit | 2,022 | 1,268 | (247 | ) | 354 | (663 | ) | ||||||||||
| Marketing | 1,721 | 923 | (657 | ) | 47 | (837 | ) | ||||||||||
| International transport | 301 | 345 | 410 | 309 | 174 | ||||||||||||
| Adjusted net profit | 892 | 1,267 | 252 | 473 | (246 | ) | |||||||||||
| EBITDA proforma adjusted | 2,975 | 2,562 | 949 | 1,316 | 6 | ||||||||||||
| Marketing | 2,334 | 1,863 | 257 | 858 | (311 | ) | |||||||||||
| International transport | 641 | 699 | 692 | 458 | 317 | ||||||||||||
| Capital expenditure | 207 | 265 | 192 | 225 | 232 | ||||||||||||
| Worldwide gas sales (b) | (bcm) | 103.72 | 97.06 | 96.76 | 95.32 | 93.17 | |||||||||||
| LNG sales (c) | 12.9 | 15.0 | 15.7 | 14.6 | 12.4 | ||||||||||||
| Customers in Italy | (million) | 6.88 | 6.88 | 7.10 | 7.45 | 8.00 | |||||||||||
| Electricity sold | (TWh) | 33.96 | 39.54 | 40.28 | 42.58 | 35.05 | |||||||||||
| Employees at year end | (number) | 5,147 | 5,072 | 4,795 | 4,752 | 4,514 | |||||||||||
| Direct GHG emissions | (mmtonnes CO2 eq) | 12.40 | 13.41 | 12.77 | 12.70 | 11.16 | |||||||||||
| Customer satisfaction index (CSS) (d) | (%) | 83.7 | 87.4 | 88.6 | 89.8 | 90.4 | |||||||||||
| Water consumption/withdrawals per kWh eq produced (EniPower) | (cm/kWh eq) | 0.015 | 0.013 | 0.014 | 0.012 | 0.017 | |||||||||||
| (*)
Following the divestment of the Regulated Businesses in
Italy, results of the Gas & Power Division include
Marketing and International transport activities.
Reference periods have been restated accordingly. (a) Before elimination of intragroup sales. (b) Include volumes marketed by the Exploration & Production Division of 2.61 bcm (6.17, 5.65, 2.86 and 2.73 bcm in 2009, 2010, 2011 and 2012, respectively). (c) Refer to LNG sales of the Gas & Power Division (included in worldwide gas sales) and the Exploration & Production Division. (d) 2013 figure is calculated as the average of the CSS detected by the AEEG in the first half of 2013 and the result detected by the Eni satisfaction survey in the second half of 2013. |
Performance of the year
| I In 2013 the positive trend in employees
and contractors injury frequency rates was confirmed,
with a reduction of 28.9% and 50.1%, respectively. I In 2013, adjusted net loss was euro 246 million, decreasing by euro 719 million from 2012 reflecting worsening competitive environment determining a fall of sale prices and margins in Italy, the effects of which were exacerbated by minimum off-take obligations provided by long-term supply contracts. I Eni gas sales (93.17 bcm) were down by 2.3% compared to 2012. When excluding the effect of the divestment of Galp, gas sales were broadly in line with the previous year. Eni’s sales in the domestic market increased by 1.08 bcm driven by higher |
spot sales and by higher
sales to importers in Italy (up 1.94 bcm). This positive
trend was more than offset by slightly lower volumes
marketed in the main European markets (down 5.61 bcm),
particularly in Benelux, Iberian Peninsula and the UK due
to declining demand and competitive pressure. I Electricity sales of 35.05 TWh decreased by 7.53 TWh from 2012, down 17.7%. I In 2013 capital expenditure of euro 232 million mainly concerned the revamping activities of the cogeneration plant of Bolgiano and the development of its heating cable system (euro 39 million), the flexibility and upgrading of combined cycle power stations (euro 82 million) as well as gas marketing initiatives (euro 88 million). |
- 41 -
Contents
Eni Fact Book Gas & Power
| 1. Marketing 1.1 Natural gas Supply |
|
- 42 -
Contents
Eni Fact Book Gas & Power
| Eni could also leverage on
the availability of natural gas deriving from equity
production, the access to all phases of the LNG chain
(liquefaction, shipping and regasification) and to other
gas infrastructures, and by trading and risk management
activity. Eni’s long-term gas requirements are met by natural gas from a total of 18 Countries, where Eni also holds upstream activities and by access to European spot markets. In 2013, Eni’s consolidated subsidiaries supplied 93.17 bcm of |
natural gas, representing a decrease of 2.15 bcm, or 2.3% from 2012. Gas volumes supplied outside Italy (78.52 bcm from consolidated companies), imported in Italy or sold outside Italy, represented approximately 92% of total supplies, were substantially in line with 2012 (down 0.62 bcm, or 0.8%) due to higher volumes purchased in Russia (up 9.76 bcm) and the Netherlands (up 1.09 bcm), completely offset by lower volumes purchased in particular in Algeria (down 5.14 bcm), Norway (down 2.97 bcm) and Libya (down 0.77 bcm). |
| Marketing in Italy and
Europe Eni operates in a liberalized market where energy customers are allowed to choose the supplier of gas and, according to their specific needs, to evaluate the quality of services and offers. Overall, Eni supplies approximately 2,600 clients including large businesses, power generation utilities, wholesalers and distributors of natural gas for automotive use. Residential users are about 8 million and include households, professionals, small and medium sized enterprises, and public bodies located all over Italy, and approximately 2 million customers in European |
Countries. In a context characterized by a six percentage points structural drop of demand in the Italian market (down by 1% in the European Union) with the Eni’s expectation for 2017 of approximately 490 bmc, in line with 2013, lower than the projection of about 600 bmc developed in 2008, Eni intends to recover profitability in gas sales, renegotiating the cost position in order to reach price alignment with the new market conditions, developing an innovative supply addressed to large segment and growing in retail segment leveraging on service quality and dual offer expansion. |
| Sales and market shares on the Italian gas market | (bcm) |
2012 |
2013 |
| Volumes sold | Market share (%) | Volumes sold | Market share (%) | % Ch. 2013 vs. 2012 |
| Italy to third parties | 28.35 | 37.8 | 29.93 | 42.7 | 5.6 | ||||||
| Wholesalers | 4.65 | 4.58 | (1.5 | ) | |||||||
| Italian gas exchange and spot markets | 7.52 | 10.68 | 42.0 | ||||||||
| Industries | 6.93 | 6.07 | (12.4 | ) | |||||||
| Medium-sized enterprises and services | 0.81 | 1.12 | 38.3 | ||||||||
| Power generation | 2.55 | 2.11 | (17.3 | ) | |||||||
| Residential | 5.89 | 5.37 | (8.8 | ) | |||||||
| Own consumption | 6.43 | 5.93 | (7.8 | ) | |||||||
| TOTAL SALES IN ITALY | 34.78 | 46.4 | 35.86 | 51.2 | 3.1 | ||||||
| Gas demand (a) | 74.91 | 70.10 | (6.4 | ) |
| (a) Source: Italian Ministry of Economic Development. |
- 43 -
Contents
Eni Fact Book Gas & Power
Gas sales by market |
(bcm) | 2009 |
2010 |
2011 |
2012 |
2013 |
| ITALY | 40.04 | 34.29 | 34.68 | 34.78 | 35.86 | |||||
| Wholesalers | 5.92 | 4.84 | 5.16 | 4.65 | 4.58 | |||||
| Gas release | 1.30 | 0.68 | ||||||||
| Italian gas exchange and spot markets | 2.37 | 4.65 | 5.24 | 7.52 | 10.68 | |||||
| Industries | 7.58 | 6.41 | 7.21 | 6.93 | 6.07 | |||||
| Medium-sized enterprises and services | 1.08 | 1.09 | 0.88 | 0.81 | 1.12 | |||||
| Power generation | 9.68 | 4.04 | 4.31 | 2.55 | 2.11 | |||||
| Residential | 6.30 | 6.39 | 5.67 | 5.89 | 5.37 | |||||
| Own consumption | 5.81 | 6.19 | 6.21 | 6.43 | 5.93 | |||||
| INTERNATIONAL SALES | 63.68 | 62.77 | 62.08 | 60.54 | 57.31 | |||||
| Rest of Europe | 55.45 | 54.52 | 52.98 | 51.02 | 47.35 | |||||
| Importers in Italy | 10.48 | 8.44 | 3.24 | 2.73 | 4.67 | |||||
| European markets | 44.97 | 46.08 | 49.74 | 48.29 | 42.68 | |||||
| Iberian Peninsula | 6.81 | 7.11 | 7.48 | 6.29 | 4.90 | |||||
| Germany/Austria | 5.36 | 5.67 | 6.47 | 7.78 | 8.31 | |||||
| Benelux | 15.72 | 15.64 | 13.84 | 10.31 | 8.68 | |||||
| Hungary | 2.58 | 2.36 | 2.24 | 2.02 | 1.84 | |||||
| UK/Northern Europe | 4.31 | 4.45 | 4.21 | 4.75 | 3.51 | |||||
| Turkey | 4.79 | 3.95 | 6.86 | 7.22 | 6.73 | |||||
| France | 4.91 | 6.09 | 7.01 | 8.36 | 7.73 | |||||
| Other | 0.49 | 0.81 | 1.63 | 1.56 | 0.98 | |||||
| Extra European markets | 2.06 | 2.60 | 6.24 | 6.79 | 7.35 | |||||
| E&P in Europe and in the Gulf of Mexico | 6.17 | 5.65 | 2.86 | 2.73 | 2.61 | |||||
| WORLDWIDE GAS SALES | 103.72 | 97.06 | 96.76 | 95.32 | 93.17 |
A review of Eni’s presence in key European markets is presented below:
| Benelux Through a direct presence and the integration with its affiliate Distrigas, Eni holds a key position in the Benelux Countries (Belgium, the Netherlands and Luxembourg), in particular in Belgium, which are a strategic hub of the continental gas spot market in Western Europe, thanks to their central position and high level of interconnectivity with the gas transit networks of Central and Northern Europe. In 2013, sales in Benelux were mainly directed to industrial companies, wholesalers and power generation and amounted to 8.68 bcm, down by 1.63 bcm, or 15.8%, due to declining gas demand and rising competitive pressure in particular in the wholesalers segment. |
Eni launched its brand in
retail gas and power market in Belgium. The Eni brand
substituted the local operators ones acquired in the past
few years with the aim of becoming one of the major
retail operators in France and Belgium while
consolidating its leadership on the Belgian business
market. France |
- 44 -
Contents
Eni Fact Book Gas & Power
| France amounted to 7.73 bcm
(8.36 bcm in 2012), a decrease of 0.63 bcm, or 7.5%, from
2012. In 2012, Eni launched its brand in the gas retail market in France, with the aim of becoming one of the major retail operators in France. In the next four-year period, Eni intends to increase sales in the Country into retail segment. Germany/Austria Spain Turkey UK/Northern Europe 1.2 LNG Qatar Pascagoula |
5.2 mmtonnes of LNG
(approximately 7.3 bcm/y) destined to the North American
market in order to monetize part of the Company’s
gas reserves. As part of the downstream leg of the
project, Eni signed a 20 year contract with Gulf LNG to
buy 5.8 bcm/y of the re-gasification capacity of the
plant near Pascagoula in Mississippi. The start-up of the
re-gasification facility commenced in the fourth quarter
of 2012. At the same time Eni USA Gas Marketing Llc entered a 20-year contract for the purchase of approximately 0.9 bcm/y of re-gasified gas downstream the terminal owned by Angola Supply Services, a company whose partners also own Angola LNG. Due to the negative prospects for marketing in the USA, Eni, through its subsidiary and the other shareholders have drafted a new development plan for the contract that minimizes the supplies to the US market and directs them to other more profitable options. 1.3 Power generation
Installed and
operational generation capacity as of December
31, 2013: 5.3 GW The combined cycle gas fired technology (CCGT) ensures an high level of efficiency and low environmental impact. In particular, management estimates that for a given amount of energy (electricity and steam) produced, using the CCGT technology instead of conventional power generation technology, the emission of carbon dioxide is reduced by about 5 mmtonnes, on an energy production of 26.5 TWh. |
- 45 -
Contents
Eni Fact Book Gas & Power
2. International transport
| Eni has transport rights on
a large European network of integrated infrastructure for
transporting natural gas, which links key consumption
basins with the main producing areas (Russia, Algeria,
Libya and the North Sea, including the Netherlands and
Norway). Eni owns capacity entitlements in an extensive
network of international high pressure pipelines enabling
the Company to import and sell in Italy and in Europe
natural gas produced in Russia, Algeria, the North Sea,
including the Netherlands and Norway, and Libya. The
Company participates to both entities which operate the
pipelines and entities which manage transport rights. |
finalized in 2008 and became
fully-operational during 2009; - the TMPC pipeline for the import of Algerian gas is 775-kilometer long and consists of five lines that are each 155-kilometer long with a transport capacity of 33.5 bcm/y. It crosses the underwater Sicily Channel from Cap Bon to Mazara del Vallo in Sicily, the point of entry into the Italian natural gas transport system; - the GreenStream pipeline, jointly-owned with the Libyan National Oil Company, started operations in October 2004 for the import of Libyan gas produced at Eni operated fields Bahr Essalam and Wafa. It is 520-kilometer long with a transport capacity of 11 bcm/y and crosses underwater in the Mediterranean Sea from Mellitah on the Libyan coast to Gela in Sicily, the point of entry into the Italian natural gas transport system. Eni
holds a 50% interest in the Blue Stream underwater
pipeline (water depth greater than 2,150 meters) linking
the Russian coast to the Turkish coast of the Black Sea.
This pipeline is 774-kilometer long on two lines and has
transport capacity of 16 bcm/y. |
- 46 -
Contents
Eni Fact Book Gas & Power
Supply of natural gas |
(bcm) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 6.86 | 7.29 | 7.22 | 7.55 | 7.15 | ||||||||||
| Outside Italy | |||||||||||||||
| Russia | 22.02 | 14.29 | 21.00 | 19.83 | 29.59 | ||||||||||
| Algeria (including LNG) | 13.82 | 16.23 | 13.94 | 14.45 | 9.31 | ||||||||||
| Libya | 9.14 | 9.36 | 2.32 | 6.55 | 5.78 | ||||||||||
| Netherlands | 11.73 | 10.16 | 11.02 | 11.97 | 13.06 | ||||||||||
| Norway | 12.65 | 11.48 | 12.30 | 12.13 | 9.16 | ||||||||||
| United Kingdom | 3.06 | 4.14 | 3.57 | 3.20 | 3.04 | ||||||||||
| Hungary | 0.63 | 0.66 | 0.61 | 0.61 | 0.48 | ||||||||||
| Qatar (LNG) | 2.91 | 2.90 | 2.90 | 2.88 | 2.89 | ||||||||||
| Other supplies of natural gas | 4.49 | 4.42 | 6.16 | 5.43 | 3.63 | ||||||||||
| Other supplies of LNG | 1.34 | 1.56 | 2.23 | 2.09 | 1.58 | ||||||||||
| 81.79 | 75.20 | 76.05 | 79.14 | 78.52 | |||||||||||
| Total supplies of Eni’s own companies | 88.65 | 82.49 | 83.27 | 86.69 | 85.67 | ||||||||||
| Offtake from (input to) storage | 1.25 | (0.20 | ) | 1.79 | (1.35 | ) | (0.58 | ) | |||||||
| Network losses, measurement differences and other changes | (0.30 | ) | (0.11 | ) | (0.21 | ) | (0.28 | ) | (0.31 | ) | |||||
| AVAILABLE FOR SALE BY ENI’S CONSOLIDATED SUBSIDIARIES | 89.60 | 82.18 | 84.85 | 85.06 | 84.78 | ||||||||||
| AVAILABLE FOR SALE OF ENI’S AFFILIATES | 7.95 | 9.23 | 9.05 | 7.53 | 5.78 | ||||||||||
| E&P volumes in Europe and Gulf of Mexico | 6.17 | 5.65 | 2.86 | 2.73 | 2.61 | ||||||||||
| GAS VOLUMES AVAILABLE FOR SALE | 103.72 | 97.06 | 96.76 | 95.32 | 93.17 |
Gas sales by entity |
(bcm) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Sales of consolidated companies | 89.60 | 82.00 | 84.05 | 84.30 | 83.60 | |||||
| Italy (including own consumption) | 40.04 | 34.23 | 34.60 | 34.66 | 35.76 | |||||
| Rest of Europe | 48.65 | 46.74 | 44.84 | 44.57 | 42.30 | |||||
| Outside Europe | 0.91 | 1.03 | 4.61 | 5.07 | 5.54 | |||||
| Sales of Eni’s affiliates (net to Eni) | 7.95 | 9.41 | 9.85 | 8.29 | 6.96 | |||||
| Italy | 0.06 | 0.08 | 0.12 | 0.10 | ||||||
| Rest of Europe | 6.80 | 7.78 | 8.14 | 6.45 | 5.05 | |||||
| Outside Europe | 1.15 | 1.57 | 1.63 | 1.72 | 1.81 | |||||
| E&P in Europe and in the Gulf of Mexico | 6.17 | 5.65 | 2.86 | 2.73 | 2.61 | |||||
| Worldwide gas sales | 103.72 | 97.06 | 96.76 | 95.32 | 93.17 |
LNG sales |
(bcm) | 2009 |
2010 |
2011 |
2012 |
2013 |
| G&P sales | 9.8 | 11.2 | 11.8 | 10.5 | 8.4 | |||||
| Italy | 0.1 | 0.2 | ||||||||
| Rest of Europe | 8.9 | 9.8 | 9.8 | 7.6 | 4.6 | |||||
| Extra European markets | 0.8 | 1.2 | 2.0 | 2.9 | 3.8 | |||||
| E&P sales | 3.1 | 3.8 | 3.9 | 4.1 | 4.0 | |||||
| Liquefaction plants: | ||||||||||
| Soyo (Angola) | 0.1 | |||||||||
| Bontang (Indonesia) | 0.8 | 0.7 | 0.6 | 0.6 | 0.5 | |||||
| Point Fortin (Trinidad & Tobago) | 0.5 | 0.6 | 0.4 | 0.5 | 0.6 | |||||
| Bonny (Nigeria) | 1.4 | 2.2 | 2.5 | 2.7 | 2.4 | |||||
| Darwin (Australia) | 0.4 | 0.3 | 0.4 | 0.3 | 0.4 | |||||
| Total LNG sales | 12.9 | 15.0 | 15.7 | 14.6 | 12.4 |
- 47 -
Contents
Eni Fact Book Gas & Power
Power sales |
(TWh) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Free market | 25.07 | 27.84 | 27.25 | 31.84 | 28.73 | |||||
| Italian Exchange for electricity | 4.70 | 7.13 | 8.67 | 6.10 | 1.96 | |||||
| Industrial plants | 2.92 | 3.21 | 3.23 | 3.30 | 3.31 | |||||
| Other (a) | 1.27 | 1.36 | 1.13 | 1.34 | 1.05 | |||||
| Power sales | 33.96 | 39.54 | 40.28 | 42.58 | 35.05 | |||||
| Power generation | 24.09 | 25.63 | 25.23 | 25.67 | 23.03 | |||||
| Trading of electricity | 9.87 | 13.91 | 15.05 | 16.91 | 12.02 |
| (a)
Include positive and negative imbalances. |
| EniPower power stations | Installed capacity as of December 31, 2013 (a) | Full installed capacity (2017) (b) | Effective/planned start-up | Technology | Fuel |
| Power stations | (MW) | (GW) | ||||||||
| Brindisi | 1,321 | 1.3 | 2006 | CCGT | Gas | |||||
| Ferrera Erbognone | 1,030 | 1.0 | 2004 | CCGT | Gas/syngas | |||||
| Livorno | 199 | 0.2 | 2000 | Power Station | Gas/fuel oil | |||||
| Mantova | 836 | 0.9 | 2005 | CCGT | Gas | |||||
| Ravenna | 972 | 1.0 | 2004 | CCGT | Gas | |||||
| Taranto (c) | 75 | 0.1 | 2000 | Power Station | Gas/fuel oil | |||||
| Ferrara | 841 | 0.8 | 2008 | CCGT | Gas | |||||
| Bolgiano | 30 | 0.1 | 2012 | Power Station | Gas | |||||
| Photovoltaic sites | 4 | 2011-2015 | Photovoltaic | Photovoltaic | ||||||
| 5,308 | 5.4 |
| (a)
Capacity available after completion of dismantling of
obsolete plants. (b) Installed and operational generation capacity. (c) In October 2013, divested to Raffneria di Taranto (R&M). |
Power generation |
2009 |
2010 |
2011 |
2012 |
2013 |
| Purchases | ||||||||||||
| Natural gas | (mmcm) | 4,790 | 5,154 | 5,008 | 5,206 | 4,635 | ||||||
| Other fuels | (ktoe) | 569 | 547 | 528 | 462 | 449 | ||||||
| - of which steam cracking | 82 | 103 | 99 | 98 | 99 | |||||||
| Production | ||||||||||||
| Power generation | (TWh) | 24.09 | 25.63 | 25.23 | 25.67 | 23.03 | ||||||
| Steam | (ktonnes) | 10,048 | 10,983 | 14,401 | 12,603 | 10,099 | ||||||
| Installed generation capacity | (GW) | 5.3 | 5.3 | 5.3 | 5.3 | 5.3 |
| Transport infrastructure |
| OUTSIDE ITALY | Lines |
Length |
Diameter |
Transport
capacity (a) |
Transit
capacity (b) |
Compression
stations |
||||||
| TTPC (Oued Saf Saf-Cap Bon) | 2 lines of km 370 | 740 | 48 | 34.0 | 33.2 | 5 | ||||||
| TMPC (Cap Bon-Mazara del Vallo) | 5 lines of km 155 | 775 | 20/26 | 33.5 | 33.5 | |||||||
| GreenStream (Mellitah-Gela) | 1 line of km 520 | 520 | 32 | 8.0 | 8.0 | 1 | ||||||
| Blue Stream (Beregovaya-Samsun) | 2 lines of km 387 | 774 | 24 | 16.0 | 16.0 | 1 | ||||||
| (a)
Includes both transit capacity and volumes of natural gas
destined to local markets and withdrawn at various points
along the pipeline. (b) The maximum volume of natural gas which is input at various entry points along the pipeline and transported to the next pipeline. |
Capital expenditure |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 85 | 155 | 132 | 174 | 163 | |||||
| Outside Italy | 122 | 110 | 60 | 51 | 69 | |||||
| 207 | 265 | 192 | 225 | 232 | ||||||
| Market | 175 | 248 | 184 | 212 | 209 | |||||
| Market | 102 | 133 | 97 | 81 | 88 | |||||
| Italy | 12 | 40 | 45 | 43 | 42 | |||||
| Outside Italy | 90 | 93 | 52 | 38 | 46 | |||||
| Power generation | 73 | 115 | 87 | 131 | 121 | |||||
| International transport | 32 | 17 | 8 | 13 | 23 | |||||
| 207 | 265 | 192 | 225 | 232 |
- 48 -
Contents
Eni Fact Book Refining & Marketing
Refining & Marketing |
Key performance indicators |
2009 |
2010 |
2011 |
2012 |
2013 |
||||||||
| Employees injury frequency rate | (No. of accidents per million of worked hours) | 3.18 | 1.77 | 1.96 | 1.08 | 0.31 | |||||||||||
| Contractors injury frequency rate | 4.35 | 3.59 | 3.21 | 2.32 | 1.68 | ||||||||||||
| Net sales from operations (a) | (euro million) | 31,769 | 43,190 | 51,219 | 62,656 | 57,329 | |||||||||||
| Operating profit | (102 | ) | 149 | (273 | ) | (1,296 | ) | (1,517 | ) | ||||||||
| Adjusted operating profit | (357 | ) | (181 | ) | (539 | ) | (321 | ) | (482 | ) | |||||||
| Adjusted net profit | (197 | ) | (56 | ) | (264 | ) | (179 | ) | (232 | ) | |||||||
| Capital expenditure | 635 | 711 | 866 | 842 | 619 | ||||||||||||
| Refinery throughputs on own account | (mmtonnes) | 34.55 | 34.80 | 31.96 | 30.01 | 27.38 | |||||||||||
| Conversion index | (%) | 60 | 61 | 61 | 61 | 62 | |||||||||||
| Balanced capacity of refineries | (kbbl/d) | 747 | 757 | 767 | 767 | 787 | |||||||||||
| Retail sales of petroleum products in Europe | (mmtonnes) | 12.02 | 11.73 | 11.37 | 10.87 | 9.69 | |||||||||||
| Service stations in Europe at year end | (units) | 5,986 | 6,167 | 6,287 | 6,384 | 6,386 | |||||||||||
| Average throughput per service station in Europe | (kliters) | 2,477 | 2,353 | 2,206 | 2,064 | 1,828 | |||||||||||
| Retail efficiency index | (%) | 1.61 | 1.53 | 1.50 | 1.48 | 1.28 | |||||||||||
| Employees at year end | (number) | 8,166 | 8,022 | 7,591 | 7,125 | 6,942 | |||||||||||
| Direct GHG emissions | (mmtonnes CO2 eq) | 7.29 | 7.76 | 7.24 | 6.03 | 5.18 | |||||||||||
| SOx (sulphur oxide) emissions | (ktonnes SO2 eq) | 21.98 | 28.05 | 23.07 | 16.99 | 10.80 | |||||||||||
| NOx (nitrogen oxide) emissions | (ktonnes NO2 eq) | 7.35 | 7.96 | 6.74 | 5.87 | 4.51 | |||||||||||
| Water consumption rate (refineries)/refinery throughputs | (cm/tonnes) | 35.99 | 28.36 | 31.03 | 25.43 | 19.98 | |||||||||||
| Biofuels marketed | (mmtonnes) | 18.15 | 17.79 | 13.26 | 14.83 | 10.84 | |||||||||||
| Customer satisfaction index | (likert scale) | 7.93 | 7.84 | 7.74 | 7.90 | 8.10 | |||||||||||
| (a) Before elimination of intragroup sales. |
Performance of the year
| I In 2013, the injury frequency rates
decreased from 2012 (down by 71.4% for employees and
27.5% for contractors). I The declining trend of greenhouse gas, SOX and NOX emissions, due to lower throughputs during the year, benefited from energy saving measures and increase in use of natural gas to replace fuel oil. I Water consumption rate at the Eni’s refineries reduced by 26%. In the 2013, the Refining & Marketing Division reported sharply lower adjusted net loss amounting to euro 232 million (euro 179 million in 2012). This decrease reflected plunging refining margins driven by weak demand for refined products and overcapacity, the effects of which were exacerbated by shrinking price differentials between light and heavy crudes due to lower heavy crudes supplies in the Mediterranean area. The negative trading environment was partly counteracted by efficiency and optimization gains. Marketing results were affected by lower fuel demand and mounting competitive pressure. |
I In 2013 refining throughputs were 27.38
mmtonnes, down by 8.8% from 2012. In Italy, processed
volumes decreased (down 9.4%) due to the planned shutdown
of the Venice Refinery following the Green Refinery
project and downsizing of all the remaining plants driven
by a decline in refining margins. Outside Italy,
Eni’s refining throughputs decreased by 5.9%, in
particular in the Czech Republic. I Retail sales in Italy of 6.64 mmtonnes decreased by 15.2% from 2012. This decline was driven by the current economic downturn and increased competitive pressure. In 2013 Eni’s average retail market share was 27.5%, down by 3.7 percentage points from 2012 when sales volumes benefited from the effect of a promotional campaign made during the summer weekends ("riparti con eni"). I Retail sales in the Rest of Europe of 3.05 mmtonnes were substantially unchanged from 2012 (up 0.3%) due to higher volumes marketed in Germany and Austria, almost completely offset by lower sales in the Czech Republic and Hungary. |
- 49 -
Contents
Eni Fact Book Refining & Marketing
| I Capital expenditure of euro 619 million related mainly to refining, supply and logistics (euro 444 million) aimed at improving flexibility and yields, in particular at the Sannazzaro Refinery, as well as marketing activities and streamlining of the retail distribution | network of refined products
(euro 175 million). I In 2013 total expenditure in R&D of the Refining & Marketing Division amounted to approximately euro 33 million, net of general and administrative costs. During the year 6 patent applications were filed. |
Activities 1. Refining Eni, through its Refining & Marketing Division, is a leader in refining in Italy, with its five wholly-owned refineries (Sannazzaro, Livorno, Venice, Taranto and Gela), and in marketing of petroleum products. In the rest of Europe Eni also holds interests in certain refining poles and is active in retail and wholesale sales in Central-Eastern European countries. Eni’s refining system has balanced capacity of
approximately 39.3 mmtonnes (equal to 787 kbbl/d) and a
conversion index of 62%. |
in wholly-owned refineries were 18.99 mmtonnes, down by 1.85 mmtonnes or 8.9% from 2012. This determined a refinery utilization rate of 66%, down by six percentage points from 2012, consistently with negative scenario. Approximately 23.7% of processed volumes were supplied by Eni’s Exploration & Production Division, up by 0.9 percentage point from 2012 (22.8%). n Italy |
 |
Crude oil that needs to be carried to the refinery by means of pipelines or over long distances by tanker ships undergoes processing for the separation of its components. In refineries crude oil is warmed to a temperature of approximately 400°C so that it turns into vapor. Oil vapors are injected in fractionating columns, also called distillation towers, where they flow upward through a series of plates and cool. At various temperatures they condense and return to a liquid state. While cooling and falling they separate in various hydrocarbon fractions (gasoil, kerosene, naphtha, gasoline, methane, ethane, propane and butane, fuel oil, lubricants, paraffin, wax and bitumen). |
- 50 -
Contents
Eni Fact Book Refining & Marketing
| Eni refining system in 2013 |
Ownership
share(%) |
Distillation
capacity (total)(kbbl/d) |
Distillation
capacity (Eni’s share)(kbbl/d) |
(kbbl/d) |
Conversion
index(%) |
Fluid
catalytic cracking - FCC(kbbl/d) |
Residue
conversion(kbbl/d) |
Go-Finer/(kbbl/d) |
Mild
Hydro- cracking/ Hydro- cracking(kbbl/d) |
Visbreaking/
Thermal Cracking(kbbl/d) |
Coking(kbbl/d) |
Distillation
capacity utilization rate (Eni’s share)(%) |
Balanced
refining capacity utilization rate (Eni’s share)(%) |
||||||||||||||
| Wholly-owned refineries | 685 | 685 | 574 | 68 | 69 | 35 | 37 | 66 | 89 | 46 | 61 | 66 | ||||||||||||||
| Italy | ||||||||||||||||||||||||||
| Sannazzaro | 100 | 223 | 223 | 190 | 73 | 34 | 13 | 51 | 29 | 74 | 87 | |||||||||||||||
| Gela | 100 | 129 | 129 | 100 | 142 | 35 | 37 | 46 | 22 | 29 | ||||||||||||||||
| Taranto | 100 | 120 | 120 | 120 | 72 | 22 | 15 | 38 | 65 | 65 | ||||||||||||||||
| Livorno | 100 | 106 | 106 | 84 | 11 | 73 | 92 | |||||||||||||||||||
| Venice | 100 | 107 | 107 | 80 | 20 | 22 | 44 | 37 | ||||||||||||||||||
| Partially-owned refineries (b) | 874 | 245 | 213 | 47 | 167 | 25 | 99 | 27 | 79 | 84 | ||||||||||||||||
| Italy | ||||||||||||||||||||||||||
| Milazzo | 50 | 248 | 124 | 100 | 60 | 45 | 25 | 32 | 77 | 83 | ||||||||||||||||
| Germany | ||||||||||||||||||||||||||
| Vohburg/Neustadt (Bayernoil) |
20 | 215 | 43 | 41 | 36 | 49 | 43 | 92 | 92 | |||||||||||||||||
| Schwedt | 8.33 | 231 | 19 | 19 | 42 | 49 | 27 | 95 | 94 | |||||||||||||||||
| Czech Republic | ||||||||||||||||||||||||||
| Kralupy
and Litvinov (Ceska Rafinerska) |
32.4 | 180 | 58 | 53 | 30 | 24 | 24 | 78 | 78 | |||||||||||||||||
| TOTAL | 1,559 | 930 | 787 | 62 | 236 | 60 | 37 | 165 | 116 | 46 | 72 | 71 |
| (a) Actual production capacity: Venice conversion in "Green Refinery", Gela with only a production line working. (b) Capacity of conversion plant is 100%. |
| Sannazzaro: with a balanced primary refining
capacity of 190 kbbl/d and a conversion index of 72.8%,
it is considered one of the most efficient in Europe. It
is located in the Po Valley and supplies mainly the
markets of North-Western Italy and Switzerland. A high
degree of flexibility of Sannazzaro refinery allows it to
process a wide range of feedstock. With regards to
logistics, this refinery is located on the route of the
Central Europe Pipeline, which links the Genoa terminal
with French-speaking Switzerland. Sannazzaro refinery is
provided with two primary distillation plants and related
facilities, including in particular three
desulphurization units. Conversion is performed through a
fluid catalytic cracker (FCC), two hydrocrackers (HdCK)
that enable middle distillate conversion (one of them
started up in 2009) and visbreaking thermal conversion
unit with a tar gasification plant (heavy residue from
visbreaking) which produces syngas for the nearby
EniPower power station at Ferrera Erbognone. In October 2013, Eni started-up at Sannazzaro the first conversion plant employing the Eni Slurry Technology (EST), with a 23 kbbl/d capacity. The plant processes extra heavy crudes with high sulphur content and produces high quality middle distillates (in particular gasoil), reducing the yield of fuel oil to zero. Moreover, the Short Contact Time-Catalytic Partial Oxidation project for hydrogen production is underway. In addition, Eni is developing a conversion technology by means of Slurry Dual Catalyst (an evolution of EST) that is based on the combination of two nanocatalysts and could contribute to the breakthrough of the EST technology, improvement of product quality, reduction of expenditure and operating costs. At the Sannazzaro Refinery, the detailed design of a project for the hydrogen production employing the proprietary technology Hydrogen SCT-CPO (Short Contact Time-Catalytic Partial Oxidation) is nearing completion. This reforming technology transforms gaseous and liquid hydrocarbons (also derived from biomass) into synthetic gas (carbon monoxide and hydrogen) at competitive costs. Taranto: the refinery has balanced refining capacity of 120 |
kbbl/d and a conversion
index of 72%. This refinery can process a wide range of
crudes and other feedstock. It processes most of the oil
produced in Eni’s Val d’Agri fields (2.87
mmtonnes in 2013) and transported to Taranto through the
Monte Alpi pipeline. Complex cycles are achieved through
a Residue Hydroconversion Unit (RHU) - Hydrocracking
process and a "Two Stage" Visbreaking - Thermal
Cracking unit. Gela: the
refinery has balanced primary refining capacity of 100
kbbl/d and a conversion index of 142%. Gela refinery
represents an upstream integrated pole with the
production of heavy crude oil obtained from nearby Eni
fields in Sicily, while downstream it is integrated with
Eni’s nearby petrochemical plants. Located on the
Southern coast of Sicily, it mainly produces fuels for
automotive use and other feedstock. Its high conversion
level is ensured by a catalytic cracking unit integrated
with go finer for feedstock upgrading and two coking
plants enabling conversion of heavy residues topping or
vacuum residues. The power plant of this refinery also
contains modern fume treatment plants (so-called SNOx)
which allow full compliance with the tightest
environmental standards, removing almost all sulphur and
nitrogen composites coming from the coke burning-process. Livorno: the refinery has balanced primary refining capacity of 84 kbbl/d and a conversion index of 11%. It produces mainly gasoline, gasoil, fuel oil for bunkering and lubricant bases. The refinery includes, beyond the primary distillation plants, two lubricant manufacturing lines. The refinery is connected with Livorno’s docks |
- 51 -
Contents
Eni Fact Book Refining & Marketing
| by highways, railways and
oil pipeline, while it is connected with the Florence
storage sites by two pipelines, permitting to optimize
intake, handling and distribution of products. Venice: the refinery, with balanced primary refining capacity of 80 kbbl/d and a conversion index of 20%, supplies mainly markets of North-Eastern Italy and Austria. In September 2013, Eni started its conversion into a bio-refinery, with an objective of mechanical completion by the end of the year and the production start-up in April of 2014. The conversion exploits an established proprietary technology (Ecofining) for the production of innovative bio-fuels, with lower environmental impact (reduced emissions of particulate) and higher motoring efficiency, exceeding technical limits of bio-fuels mixture currently present on the market. Ecofining technology is flexible with regard to the raw material, capable to convert the second-generation feedstock (exhausted vegetable oils and animal grease) which are not in competition with alimentary chain. |
Milazzo:
jointly-owned by Eni and Kuwait Petroleum Italy,
the refinery has balanced primary refining capacity of
100 kbbl/d (Eni’s share) and a conversion rate of
60%. Located on the northern coast of Sicily, it is
provided with two primary distillation plants, one unit
of fluid catalytic cracking (FCC), one hydrocracking unit
for the conversion of middle distillates (HdCK) and one
unit devoted to the residue treatment process (LC-Finer). n Outside Italy |
| 2. Logistics Eni is one of the major operators in storage and transport of petroleum products in Italy with its logistical integrated infrastructure which includes oil pipelines network, the system of 20 owned and directly managed storage sites and a network for the sale and storage of refined products, LPG and crudes. Eni’s logistics model is organized in a hub structure including five main areas. These hubs monitor and centralize the handling of product flows aiming to drive forward more efficiency, particularly in cost control of collection and delivery of orders. Eni holds interests in five societies established in partnership with the major Italian operators. These are located in Vado Ligure - Genova (Petrolig), Arquata Scrivia (Sigemi), Venice (Petroven), Ravenna (Petra) and Trieste (DCT) with the objective of reducing logistic costs and increasing efficiency. In |
addition, Eni operates in
the transport of oil and refined products: (i) by sea
through spot and long-term lease contracts of tanker
ships; and (ii) on land through the pipeline network, of
which Eni owns approximately 1,462 kilometers. Secondary
distribution to retail and wholesale markets is effected
through third parties who also own their means of
transportation. 3. Marketing n Retail Italy |
- 52 -
Contents
Eni Fact Book Refining & Marketing
| when sales volumes benefited
of the effect of a promotional campaign made during the
summer weekends ("riparti con eni"). In 2013,
retail sales in Italy of 6.64 mmtonnes decreased by
approximately 1.19 mmtonnes, or 15.2% from 2012, driven
by lower consumption of gasoil and gasoline, in
particular at highway service stations reflecting the
decline in freight transportation and high competitive
pressure. Average gasoline and gasoil throughputs (1,657
kliters) decreased by approximately 318 kliters from
2012. At December 31, 2013, Eni’s retail network in Italy consisted of 4,762 service stations, 18 stations less than at December 31, 2012 (4,780 service stations), resulting from the negative balance of the closing of service stations with low throughput (51 units), the release of one motorway concession, partially offset by the positive contribution of acquisitions/releases of lease concessions (34 units).
Premium fuels Commercial initiatives |
Comarketing From the first months of 2013, Eni signed a number of agreements with its partners active in the sectors of large distribution, telecommunications and clothing, in order to give an immediate economic advantage to the customers in possession of Eni’s loyalty cards. For Eni, this means being able to give Italian customers more value in their daily purchases of large consumption goods and at the same time increase the contacts and incentivize the average throughput. In order to support these activities, in 2013 Eni emitted 4 million of discount codes, 1.6 million of which were utilized, for the total of 40 million of liters sold. Loyalty and payment cards As of January 31, 2014 approximately 1,100,000 of new
cards were requested (95% of which were basic prepaid),
150,000 of which were activated with first recharge. Routex Multicard |
- 53 -
Contents
Eni Fact Book Refining & Marketing
| Electronic
fuel coupons In September 2013, Eni started to sell rechargeable fuel vouchers, designed especially for business customers. Non-oil Smart Mobility n Retail rest of Europe |
4. Wholesale Business Fuels |
- 54 -
Contents
Eni Fact Book Refining & Marketing
| LPG In Italy, Eni is leader in LPG production, marketing and sale with 619 ktonnes sold for heating and automotive use equal to a 20.8% market share. An additional 206 ktonnes of LPG were marketed through other channels mainly to oil companies and traders. LPG activities in Italy are supported by direct production, availability from 5 bottling plants and 4 owned storage sites, in addition to products imported at coastal storage sites located in Livorno, Naples and Ravenna. Outside Italy, LPG sales in 2013 amounted to 510 ktonnes of which 389 ktonnes in Ecuador where LPG market share is around 37.8%. Lubricants |
transformer oil and
anti-freeze fluids). Outside Italy sales amounted to
approximately 170 ktonnes, of these about 40% were
registered in Europe (mainly Spain, Germany, Austria and
France). Oxygenates |
Supply of oil |
(mmtonnes) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Equity crude oil | |||||||||||||||
| Production outside Italy | 29.84 | 26.90 | 24.29 | 23.57 | 22.46 | ||||||||||
| Production in Italy | 2.91 | 3.24 | 3.35 | 3.35 | 3.69 | ||||||||||
| 32.75 | 30.14 | 27.64 | 26.92 | 26.15 | |||||||||||
| Other crudes oil | |||||||||||||||
| Purchases on spot markets | 14.94 | 20.95 | 20.44 | 24.95 | 25.27 | ||||||||||
| Purchases under long-term contracts | 19.71 | 17.16 | 10.94 | 10.34 | 14.54 | ||||||||||
| 34.65 | 38.11 | 31.38 | 35.29 | 39.81 | |||||||||||
| Total crude oil purchases | 67.40 | 68.25 | 59.02 | 62.21 | 65.96 | ||||||||||
| Purchases of intermediate products | 2.92 | 3.05 | 4.26 | 4.53 | 5.31 | ||||||||||
| Purchase of products | 13.98 | 15.28 | 15.85 | 20.52 | 17.79 | ||||||||||
| TOTAL PURCHASES | 84.30 | 86.58 | 79.13 | 87.26 | 89.06 | ||||||||||
| Consumption for power generation | (0.96 | ) | (0.92 | ) | (0.89 | ) | (0.75 | ) | (0.55 | ) | |||||
| Other changes (a) | (1.64 | ) | (2.69 | ) | (1.12 | ) | (1.63 | ) | (1.06 | ) | |||||
| 81.70 | 82.97 | 77.12 | 84.88 | 87.45 |
| (a) Include changes in inventories, transport declines, consumption and losses. |
Refinery capacity |
2009 |
2010 |
2011 |
2012 |
2013 |
| Primary distillation capacity (a) | (kbbl/d) | 930 | 930 | 930 | 930 | 930 | ||||||
| Balanced capacity (a) | 747 | 757 | 767 | 767 | 787 | |||||||
| Refinery throughputs on own account | 480 | 514 | 455 | 417 | 380 | |||||||
| Distillation capacity utilization rate | (%) | 73 | 73 | 72 | 72 | 66 |
| (a) Eni’s share. |
- 55 -
Contents
Eni Fact Book Refining & Marketing
Availability of refined products |
(mmtonnes) | 2009 |
2010 |
2011 |
2012 |
2013 |
| ITALY | |||||||||||||||
| At wholly-owned refineries | 24.02 | 25.70 | 22.75 | 20.84 | 18.99 | ||||||||||
| Less input on account of third parties | (0.49 | ) | (0.50 | ) | (0.49 | ) | (0.47 | ) | (0.57 | ) | |||||
| At affiliate refineries | 5.87 | 4.36 | 4.74 | 4.52 | 4.14 | ||||||||||
| Refinery throughputs on own account | 29.40 | 29.56 | 27.00 | 24.89 | 22.56 | ||||||||||
| Consumption and losses | (1.60 | ) | (1.69 | ) | (1.55 | ) | (1.34 | ) | (1.23 | ) | |||||
| Products available for sale | 27.80 | 27.87 | 25.45 | 23.55 | 21.33 | ||||||||||
| Purchases of refined products and change in inventories | 3.73 | 4.24 | 3.22 | 3.35 | 4.42 | ||||||||||
| Products transferred to operations outside Italy | (3.89 | ) | (4.18 | ) | (1.77 | ) | (2.36 | ) | (1.85 | ) | |||||
| Consumption for power generation | (0.96 | ) | (0.92 | ) | (0.89 | ) | (0.75 | ) | (0.55 | ) | |||||
| Sales of products | 26.68 | 27.01 | 26.01 | 23.79 | 23.35 | ||||||||||
| OUTSIDE ITALY | |||||||||||||||
| Refinery throughputs on own account | 5.15 | 5.24 | 4.96 | 5.12 | 4.82 | ||||||||||
| Consumption and losses | (0.25 | ) | (0.24 | ) | (0.23 | ) | (0.23 | ) | (0.22 | ) | |||||
| Products available for sale | 4.90 | 5.00 | 4.73 | 4.89 | 4.60 | ||||||||||
| Purchases of finished products and change in inventories | 10.12 | 10.61 | 12.51 | 17.29 | 13.69 | ||||||||||
| Products transferred from Italian operations | 3.89 | 4.18 | 1.77 | 2.36 | 1.85 | ||||||||||
| Sales of products | 18.91 | 19.79 | 19.01 | 24.54 | 20.14 | ||||||||||
| Refinery throughputs on own account | 34.55 | 34.80 | 31.96 | 30.01 | 27.38 | ||||||||||
| Total equity crude input | 5.11 | 5.02 | 6.54 | 6.39 | 5.93 | ||||||||||
| Total sales of refined products | 45.59 | 46.80 | 45.02 | 48.33 | 43.49 | ||||||||||
| Crude oil sales | 36.11 | 36.17 | 32.10 | 36.56 | 43.96 | ||||||||||
| TOTAL SALES | 81.70 | 82.97 | 77.12 | 84.89 | 87.45 |
Sales in Italy and outside Italy by market |
(mmtonnes) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Retail | 9.03 | 8.63 | 8.36 | 7.83 | 6.64 | |||||
| Wholesale | 9.56 | 9.45 | 9.36 | 8.62 | 8.37 | |||||
| 18.59 | 18.08 | 17.72 | 16.45 | 15.01 | ||||||
| Petrochemicals | 1.33 | 1.72 | 1.71 | 1.26 | 1.32 | |||||
| Other markets | 6.76 | 7.21 | 6.58 | 6.08 | 7.01 | |||||
| Sales in Italy | 26.68 | 27.01 | 26.01 | 23.79 | 23.34 | |||||
| Retail rest of Europe | 2.99 | 3.10 | 3.01 | 3.04 | 3.05 | |||||
| Wholesale rest of Europe | 3.66 | 3.88 | 3.84 | 3.96 | 4.23 | |||||
| Wholesale outside Europe | 0.41 | 0.42 | 0.43 | 0.42 | 0.43 | |||||
| 7.06 | 7.40 | 7.28 | 7.42 | 7.71 | ||||||
| Other markets | 11.85 | 12.39 | 11.73 | 17.12 | 12.44 | |||||
| Sales outside Italy | 18.91 | 19.79 | 19.01 | 24.54 | 20.15 | |||||
| Total sales | 45.59 | 46.80 | 45.02 | 48.33 | 43.49 |
- 56 -
Contents
Eni Fact Book Refining & Marketing
Retail and wholesale sales of refined products |
(mmtonnes) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 18.59 | 18.08 | 17.72 | 16.45 | 15.01 | |||||
| Retail sales | 9.03 | 8.63 | 8.36 | 7.83 | 6.64 | |||||
| Gasoline | 3.05 | 2.76 | 2.60 | 2.41 | 1.96 | |||||
| Gasoil | 5.74 | 5.58 | 5.45 | 5.08 | 4.33 | |||||
| LPG | 0.22 | 0.26 | 0.29 | 0.31 | 0.32 | |||||
| Other | 0.02 | 0.03 | 0.02 | 0.03 | 0.03 | |||||
| Wholesale sales | 9.56 | 9.45 | 9.36 | 8.62 | 8.37 | |||||
| Gasoil | 4.30 | 4.36 | 4.18 | 4.07 | 4.09 | |||||
| Fuel oil | 0.72 | 0.44 | 0.46 | 0.33 | 0.24 | |||||
| LPG | 0.35 | 0.33 | 0.31 | 0.30 | 0.30 | |||||
| Gasoline | 0.12 | 0.16 | 0.19 | 0.20 | 0.25 | |||||
| Lubricants | 0.09 | 0.10 | 0.10 | 0.09 | 0.09 | |||||
| Bunker | 1.38 | 1.35 | 1.26 | 1.19 | 1.00 | |||||
| Jet fuel | 1.43 | 1.46 | 1.65 | 1.56 | 1.58 | |||||
| Other | 1.17 | 1.25 | 1.21 | 0.88 | 0.82 | |||||
| Outside Italy (retail + wholesale) | 7.06 | 7.40 | 7.28 | 7.42 | 7.71 | |||||
| Gasoline | 1.89 | 1.85 | 1.79 | 1.81 | 1.73 | |||||
| Gasoil | 3.54 | 3.95 | 3.82 | 3.96 | 4.23 | |||||
| Jet fuel | 0.35 | 0.40 | 0.49 | 0.44 | 0.51 | |||||
| Fuel oil | 0.28 | 0.25 | 0.23 | 0.19 | 0.22 | |||||
| Lubricants | 0.10 | 0.10 | 0.10 | 0.09 | 0.10 | |||||
| LPG | 0.50 | 0.49 | 0.50 | 0.52 | 0.51 | |||||
| Other | 0.40 | 0.36 | 0.35 | 0.41 | 0.41 | |||||
| Total | 25.65 | 25.48 | 25.00 | 23.87 | 22.72 |
Number of service stations |
(units) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 4,474 | 4,542 | 4,701 | 4,780 | 4,762 | |||||||
| Ordinary stations | 4,344 | 4,415 | 4,574 | 4,653 | 4,636 | |||||||
| Highway stations | 130 | 127 | 127 | 127 | 126 | |||||||
| Outside Italy | 1,512 | 1,625 | 1,586 | 1,604 | 1,624 | |||||||
| Germany | 478 | 455 | 454 | 445 | 460 | |||||||
| France | 196 | 188 | 181 | 173 | 169 | |||||||
| Austria/Switzerland | 446 | 582 | 547 | 575 | 585 | |||||||
| Eastern Europe | 392 | 400 | 404 | 411 | 410 | |||||||
| Service stations selling Blu products | 4,822 | 4,994 | 5,179 | 5,226 | 5,021 | |||||||
| "Multi-Energy" service stations | 4 | 5 | 5 | 6 | 6 | |||||||
| Service stations selling LPG and natural gas | 690 | 657 | 864 | 1,031 | 1,024 | |||||||
| Non-oil sales | (euro million) | 147 | 137 | 156 | 159 | 151 |
Average throughput |
(kliters/No. of service stations) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 2,482 | 2,322 | 2,173 | 1,976 | 1,657 | |||||
| Germany | 3,167 | 3,360 | 3,237 | 3,226 | 3,279 | |||||
| France | 2,193 | 2,310 | 2,209 | 2,121 | 2,194 | |||||
| Austria/Switzerland | 1,691 | 1,711 | 1,645 | 1,879 | 1,890 | |||||
| Eastern Europe | 2,642 | 2,508 | 2,591 | 2,145 | 2,044 | |||||
| Average throughput | 2,477 | 2,352 | 2,206 | 2,064 | 1,828 |
- 57 -
Contents
Eni Fact Book Refining & Marketing
Market shares in Italy |
(%) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Retail | 31.5 | 30.4 | 30.5 | 31.2 | 27.5 | |||||
| Gasoline | 29.0 | 27.9 | 27.8 | 28.8 | 24.8 | |||||
| Gasoil | 33.8 | 32.5 | 32.6 | 33.2 | 29.6 | |||||
| LPG (automotive) | 20.2 | 21.4 | 22.7 | 23.1 | 20.8 | |||||
| Lubricants | 21.5 | 35.7 | 27.7 | 35.4 | 30.4 | |||||
| Wholesale | 27.5 | 29.2 | 28.6 | 29.5 | 28.8 | |||||
| Gasoil | 32.0 | 33.5 | 30.8 | 33.0 | 32.7 | |||||
| Fuel oil | 17.2 | 17.8 | 25.5 | 23.3 | 17.5 | |||||
| Bunker | 40.1 | 40.4 | 33.6 | 37.6 | 39.4 | |||||
| Lubricants | 23.3 | 24.0 | 23.6 | 24.1 | 23.5 | |||||
| Domestic market share | 29.3 | 29.8 | 29.3 | 30.3 | 28.3 |
Retail market shares outside Italy |
(%) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Central Europe | ||||||||||
| Austria | 7.3 | 7.0 | 9.6 | 11.7 | 11.9 | |||||
| Switzerland | 6.4 | 6.5 | 6.6 | 7.1 | 7.3 | |||||
| Germany | 3.4 | 3.4 | 3.1 | 3.2 | 3.2 | |||||
| France | 1.1 | 1.1 | 1.0 | 0.9 | 0.9 | |||||
| Eastern Europe | ||||||||||
| Hungary | 11.6 | 11.9 | 11.9 | 11.9 | 11.7 | |||||
| Czech Republic | 11.3 | 11.8 | 11.6 | 10.8 | 9.8 | |||||
| Slovakia | 9.2 | 9.7 | 9.8 | 9.7 | 9.7 | |||||
| Slovenia | 2.4 | 2.3 | 2.2 | 2.2 | 2.3 | |||||
| Romania | 1.2 | 1.5 | 1.7 | 1.8 | 1.9 |
Capital expenditure |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 581 | 633 | 803 | 781 | 551 | |||||
| Outside Italy | 54 | 78 | 63 | 61 | 68 | |||||
| 635 | 711 | 866 | 842 | 619 | ||||||
| Refining, supply and logistic | 436 | 446 | 638 | 622 | 444 | |||||
| Italy | 436 | 444 | 635 | 618 | 444 | |||||
| Outside Italy | 2 | 3 | 4 | |||||||
| Marketing | 172 | 246 | 228 | 220 | 175 | |||||
| Italy | 118 | 170 | 168 | 163 | 107 | |||||
| Outside Italy | 54 | 76 | 60 | 57 | 68 | |||||
| Other | 27 | 19 | ||||||||
| 635 | 711 | 866 | 842 | 619 |
- 58 -
Contents
Eni Fact Book Versalis
Versalis |
Key performance indicators |
2009 |
2010 |
2011 |
2012 |
2013 |
||||||||
| Employees injury frequency rate | (No. of accidents per million of worked hours) | 2.34 | 1.54 | 1.47 | 0.76 | 0.76 | |||||||||||
| Contractors injury frequency rate | 8.12 | 5.94 | 4.60 | 1.67 | 0.30 | ||||||||||||
| Net sales from operations (a) | (euro million) | 4,203 | 6,141 | 6,491 | 6,418 | 5,859 | |||||||||||
| Intermediates | 1,832 | 2,833 | 2,987 | 3,050 | 2,709 | ||||||||||||
| Polymers | 2,185 | 3,126 | 3,299 | 3,188 | 2,933 | ||||||||||||
| Other sales | 186 | 182 | 205 | 180 | 217 | ||||||||||||
| Operating profit | (675 | ) | (86 | ) | (424 | ) | (681 | ) | (725 | ) | |||||||
| Adjusted operating profit | (426 | ) | (96 | ) | (273 | ) | (483 | ) | (386 | ) | |||||||
| Adjusted net profit | (340 | ) | (73 | ) | (206 | ) | (395 | ) | (338 | ) | |||||||
| Capital expenditure | 145 | 251 | 216 | 172 | 314 | ||||||||||||
| Production | (ktonnes) | 6,521 | 7,220 | 6,245 | 6,090 | 5,817 | |||||||||||
| Sales of petrochemical products | 4,265 | 4,731 | 4,040 | 3,953 | 3,785 | ||||||||||||
| Average plant utilization rate | (%) | 65.4 | 72.9 | 65.3 | 66.7 | 65.3 | |||||||||||
| Employees at year end | (number) | 6,068 | 5,972 | 5,804 | 5,668 | 5,708 | |||||||||||
| Direct GHG emissions | (mmtonnes CO2 eq) | 4.63 | 4.69 | 4.12 | 3.69 | 3.66 | |||||||||||
| NMVOC (Non-Methane Volatile Organic Compound) emissions | (ktonnes) | 3.83 | 4.71 | 4.18 | 4.40 | 3.93 | |||||||||||
| SOx emissions (sulphur oxide) | (ktonnes SO2 eq) | 4.59 | 3.30 | 3.17 | 2.19 | 1.53 | |||||||||||
| NOx emissions (nitrogen oxide) | (ktonnes NO2 eq) | 4.78 | 4.87 | 4.14 | 3.43 | 3.29 | |||||||||||
| Recycled/reused water | (%) | 81.6 | 82.7 | 81.9 | 81.6 | 86.2 | |||||||||||
| (a) Before elimination of intragroup sales. |
Performance of the year
| I In 2013, contractors injury frequency
rate continued to follow a positive trend (down by 81.9%
from 2012). Employees injury frequency rate remained
unchanged. I In 2013 emissions of greenhouse gas and other emissions in the atmosphere improved from 2012 following the interruption of production at the Porto Torres site in the conversion phase. Further reductions were registered, particularly at the Mantova site for NOx, and NMVOC as well as at the Dunkerque site for SOx and NMVOC. Recycled/reused water rate improved, up to 86.2%. I In 2013, as part of the Product Stewardship, Versalis realized a specific database called Athos (Advanced tool for the handling of substances) which collects all the information necessary for the safe management, for employees and for the environment, of chemical products processed and utilized at Versalis sites. I In 2013 adjusted net loss amounted to euro 338 million with a decline of euro 57 million from 2012, due to a sharp decrease of cracker margins reported in the first half of 2012. I Sales of petrochemical products were 3,785 ktonnes, down by 168 ktonnes, or 4.2% from 2012, due to decline in consumptions. |
I Petrochemical production volumes were
5,817 ktonnes, decreasing by 273 ktonnes, or 4.5% from
2012, due to declining demand in all businesses. In
particular, the steepest decline was reported in
elastomers and polyethylene. I In 2013 overall expenditure in R&D amounted to approximately euro 39 million in line with the previous year. 10 patent applications were filed, one of which jointly with E&P. Expansion on international markets |
- 59 -
Contents
Eni Fact Book Versalis
| - with Yulex Corporation, an
agricultural-based biomaterials company, for a project of
guayule-based biorubber production and a launch of
industrial production complex in Southern Europe. The
partnership will cover the entire manufacturing chain.
Versalis will manufacture materials for various
applications, with a final goal of the optimization of
the productive process in the tyre industry; - with South Korean company Lotte Chemical, Versalis established a 50:50 joint venture, while with Malaysian company Petronas, Versalis signed a shareholders agreement. The agreements concern the development of joint production of styrene and elastomers, as part of the expansion process in the growing South-East Asian markets; - with Neville Venture, Versalis signed an agreement of strategic partnership for the production of hydrocarbon resins at the Priolo plant and finalized a license agreement related to the resins production for various applications such as adhesives, inks, coatings and rubber; - with Elevance Renewable Sciences Inc, a United States chemical company, specialized in production of chemicals from vegetable oils, with a significant value added, Versalis signed a Memorandum of Understanding (MoU) for establishing a strategic partnership, in order to jointly develop and scale a |
new technology for a
production from vegetable oils, aiming at developing and
scaling of new catalysts. The market applications of the
future production will be specialties with a significant
added value such as personal care products, detergents
and cleaners, bio-lubricants and oilfield chemicals. Green Chemistry development |
 |
The materials
produced by Versalis are obtained following a
manufacturing cycle which involves several processing
stages. Virgin naphtha, a raw material which is a
distillation product from petroleum, undergoes thermal
cracking also known as steam-cracking. The component
molecules split into simpler molecules: monomers
(ethylene, propylene, butadiene, etc.) and into blends of
aromatic compounds. The monomers are then reconstituted into more complex molecules: polymers. The following are produced from polymers: polyethylene, styrenes and elastomers used by processing companies to produce a whole variety of products for everyday use. The blends of aromatic compounds, properly treated, are used to produce intermediates, so-called because they are used in the manufacturing of products for everyday use. |
Activities
| Eni trough Versalis performs
activities of production and marketing of petrochemical
products (basic petrochemicals and polymers), leveraging
on a wide range of proprietary technologies, advanced
production facilities, as well as a large and efficient
retail network present in 18 European countries. Versalis’ portfolio of patents and proprietary technologies covers the whole field of basic petrochemicals and polymers: phenol and its derivatives, polyethylene, styrenes and elastomers as well as catalysts and special chemical products. As a producer of intermediates, all types of polyethylene and a wide range of elastomers/lattices and of the complete line of styrenic |
products, Versalis continues
in the development of its proprietary technologies
supported by the experience it gained in production and
R&D. This approach favored the optimization of the
design of equipment and plants, of their performance, of
proprietary catalysts and other products that allowed it
to achieve excellence in all technologies in the specific
business areas in order to compete in markets worldwide.
A key role is played by the most innovative proprietary
catalysts, particularly those based on zeolites developed
by Versalis as building blocks of some of its most
advanced technologies and available worldwide. The principal objective of basic petrochemicals is granting the adequate availability of monomers (ethylene, butadiene and benzene) covering the needs of further production processes: in particular olefins production is strictly linked with the polyethylene |
- 60 -
Contents
Eni Fact Book Versalis
| and elastomers business, aromatics grant the benzene availability necessary to produce intermediate products used in the production of resins, artificial fibers and polystyrene. In polymers business Versalis is one of the most relevant European producers of elastomers, where | it is present in almost all the relevant sectors (in particular, in the automotive industry), polystyrene and polyethylene, whose most relevant use is in flexible packaging. |
| Business areas Intermediates Intermediates revenues (euro 2,709 million) decreased by euro 341 million from 2012 (down by 11.2%) reflecting mainly decreased volumes sold (down by 4.2%) and average unit prices (down by 1.9%), with different trends in each business: in the olefins sales volumes of ethylene decreased (down by 4%) due to the planned standstill at the Priolo plant and lower consumption, with prices slightly decreasing compared to previous year, while butadiene volumes reported a sharp decrease (down by 38%) driven by the weakness of elastomers market and the reduced average prices by 23% reflecting the consumption crisis. In aromatics, benzene sales volumes registered a decline of 7.4%, while xylene volumes increased by 7.5%, with average prices in line with 2012. Revenues from derivatives declined mainly due to lower volumes of phenol/derivatives (down 3.6%) due to lower availability of product following planned downtime at the Mantova plant, partly offset by 1.4% increase in average sale prices. Intermediates production (3,462 ktonnes) registered a decrease from the last year (down by 133 ktonnes, or 3.7%) due to reductions in olefins (down 5.7%) and derivatives (down 2.4%) driven by lower |
utilization of Priolo
cracking plant and lower production of butadiene (down
10.3%) affected by the planned facility downtimes at the
Brindisi and Ravenna plants. These reductions were partly
offset by higher aromatics production (up by 3% compared
to previous year) due to higher xylene production. Polymers Polymers revenues (euro 2,933 million) decreased by euro 255 million from 2012, or by 8%, due to average unit prices decreasing by 19% and |
- 61 -
Contents
Eni Fact Book Versalis
| lower elastomers sale volumes (down by 9.7%) due to the significant decrease in demand from the tyre and automotive industry. This negative performance was partly offset by higher average prices of styrene (up 7.5%) and polyethylene (up 1%) registered particularly in | the last part of 2013. Polymer production (2,356 ktonnes) decreased by 140 ktonnes from 2012 (down 5.6%), due mainly to a decline in production at the Ravenna plant and at English sites (Hythe and Grangemouth) reflecting market trends. |
Product availability |
(ktonnes) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Intermediates | 4,350 | 4,860 | 4,101 | 3,595 | 3,462 | ||||||||||
| Polymers | 2,171 | 2,360 | 2,144 | 2,495 | 2,355 | ||||||||||
| Production | 6,521 | 7,220 | 6,245 | 6,090 | 5,817 | ||||||||||
| Consumption and losses | (2,701 | ) | (2,912 | ) | (2,631 | ) | (2,545 | ) | (2,394 | ) | |||||
| Purchases and change in inventories | 445 | 423 | 426 | 408 | 362 | ||||||||||
| 4,265 | 4,731 | 4,040 | 3,953 | 3,785 |
Revenues by geographic area |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 2,215 | 3,131 | 3,364 | 3,172 | 2,758 | |||||
| Rest of Europe | 1,701 | 2,632 | 2,747 | 2,826 | 2,704 | |||||
| Asia | 169 | 139 | 182 | 271 | 238 | |||||
| Africa | 76 | 127 | 101 | 84 | 126 | |||||
| Americas | 39 | 108 | 93 | 61 | 28 | |||||
| Other areas | 3 | 4 | 4 | 4 | 5 | |||||
| 4,203 | 6,141 | 6,491 | 6,418 | 5,859 |
Revenues by product |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Olefins | 1,059 | 1,705 | 1,754 | 1,792 | 1,487 | |||||
| Aromatics | 486 | 704 | 835 | 819 | 791 | |||||
| Intermediates | 251 | 375 | 359 | 440 | 431 | |||||
| Elastomers | 579 | 834 | 1,062 | 979 | 716 | |||||
| Styrenics | 501 | 744 | 780 | 774 | 800 | |||||
| Polyethylene | 1,140 | 1,597 | 1,496 | 1,434 | 1,418 | |||||
| Other | 187 | 182 | 205 | 180 | 216 | |||||
| 4,203 | 6,141 | 6,491 | 6,418 | 5,859 |
Capital expenditure |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| 145 | 251 | 216 | 172 | 314 | ||||||
| of which: | ||||||||||
| - upkeeping | 28 | 59 | 59 | 25 | 66 | |||||
| - plant upgrades | 58 | 116 | 53 | 53 | 170 | |||||
| - HSE | 28 | 29 | 46 | 38 | 52 | |||||
| - energy recovery | 45 | 42 | 41 | 8 |
- 62 -
Contents
Eni Fact Book Engineering & Construction
Engineering & Construction |
Key performance indicators |
2009 |
2010 |
2011 |
2012 |
2013 |
||||||||
| Employees injury frequency rate | (No. of accidents per million of worked hours) | 0.40 | 0.45 | 0.44 | 0.54 | 0.46 | |||||||
| Contractors injury frequency rate | 0.57 | 0.33 | 0.21 | 0.17 | 0.10 | ||||||||
| Fatality index | (No. of fatalities per 100 per million of worked hours) | 0.86 | 2.14 | 1.82 | 0.93 | 2.01 | |||||||
| Net sales from operations (a) | (euro million) | 9,664 | 10,581 | 11,834 | 12,771 | 11,611 | |||||||
| Operating profit | 881 | 1,302 | 1,422 | 1,442 | (83 | ) | |||||||
| Adjusted operating profit | 1,120 | 1,326 | 1,443 | 1,474 | (84 | ) | |||||||
| Adjusted net profit | 892 | 994 | 1,098 | 1,111 | (253 | ) | |||||||
| Capital expenditure | 1,630 | 1,552 | 1,090 | 1,011 | 902 | ||||||||
| Orders acquired | (euro million) | 9,917 | 12,935 | 12,505 | 13,391 | 10,653 | |||||||
| Order backlog | 18,730 | 20,505 | 20,417 | 19,739 | 17,514 | ||||||||
| Employees at year end | (number) | 35,969 | 38,826 | 38,561 | 43,387 | 47,209 | |||||||
| Employees outside Italy rate | (%) | 85.6 | 87.3 | 86.5 | 88.1 | 89.1 | |||||||
| Local managers rate | 41.1 | 45.3 | 43.0 | 41.3 | 41.3 | ||||||||
| Local procurement rate | 47.0 | 61.3 | 56.4 | 51.8 | 51.1 | ||||||||
| Healthcare expenditure | (euro million) | 25 | 20 | 32 | 21 | 22 | |||||||
| Security expenditure | 69 | 26 | 51 | 82 | 85 | ||||||||
| Direct GHG emissions | (mmtonnes CO2 eq) | 1.28 | 1.11 | 1.32 | 1.54 | 1.54 | |||||||
| (a) Before elimination of intragroup sales. |
| Performance of the year |
| I In 2013 procurement amounted to euro
9,066 million, 51.1% of which referred to local
procurement. I In 2013 the injury frequency rate for employees and contractors improved from 2012 (by 14.8% and 41.1%, respectively). In 2013 Eni continued its commitment in education and training for employees and contractors in the field of health and security, with initiatives such as "Leadership in Health and Safety", "Working at height and Confined Space" as well as the use of a dedicated HSE training portal and individual protection equipment. I Health and safety expenditure registered an increase (up by 4% from 2012). In particular, the expenditure for individual protection equipment increased by 30% and the expenditure for safety training increased by 10%. I In 2013, adjusted net loss amounted to euro 253 million (down by euro 1,264 million from the adjusted net profit of euro 1,111 million reported in 2012). This result reflected operating and marketing difficulties encountered in the first half of 2013, which led management to revise the profit margin estimates for important orders, in particular for the construction of onshore industrial complexes. I Orders acquired amounted to euro 10,653 million (euro 13,391 million in 2012), 94% of which relating to the works outside Italy, while 14% orders from Eni Companies. I Order backlog amounted to euro 17,514 million at December 31, 2013 (euro 19,739 million at December 31, 2012), of which euro 9,244 million to be fulfilled within 2014. |
I In 2013 overall expenditure in R&D
amounted approximately to euro 15 million, in line with
the previous year. 14 patent applications were filed. I Capital expenditure amounted to euro 902 million (euro 1,011 million in 2012), mainly regarded the upgrading of the drilling and construction fleet. Engineering & Construction Offshore Saipem is well positioned in the market of large projects for the development of offshore hydrocarbon fields leveraging on its technical and operational skills (supported by a technologically advanced fleet and the ability to operate in complex environments) and engineering and project management capabilities acquired on the marketplace over recent years (such as Bouygues Offshore). Saipem intends to consolidate its market share strengthening its EPIC oriented business model and leveraging on its satisfactory long-term relationships with the major oil companies and National Oil Companies. Higher levels of efficiency and flexibility are expected to be achieved by reaching the technological excellence and the highest economies of scale in its engineering hubs employing local resources in contexts where this represents a competitive advantage, integrating in its own business model the direct management of construction process through the creation of a large |
- 63 -
Contents
Eni Fact Book Engineering & Construction
| construction yard in
South-East Asia and revamping/upgrading its construction
fleet. Over the next years, Saipem will invest in the new
construction yard in Brazil to be completed in 2014,
fleet maintenance/substitutions, major upgrades on
offshore fleet, equipment for the execution of
awarded/expected projects and investments in strategic
areas. In 2013 revenues amounted to euro 5,094 million, down by 2.2% from 2012, due to lower levels of activity in the North Sea, Kazakhstan and Australia. Orders acquired amounted to euro 5,777 million (euro 7,477 million in 2012). Among the main orders acquired were: (i) an EPCI contract on behalf of Total Upstream Nigeria Ltd, for the development of the Egina field in Nigeria that includes engineering, procurement, fabrication, installation and pre-commissioning of subsea pipelines for oil and gas production and gas export, flexible jumpers and umbilicals; (ii) a contract on behalf of Burullus Gas Co for the development of the West Delta Deep Marine - Phase IXa Project, about 90 kilometers off the Mediterranean coast of Egypt. The project is aimed to the installation of subsea facilities (in water depths up to 850 meters) in the West Delta Deep Marine Concession, where Saipem had already successfully performed some previous phases of subsea field development; (iii) an EPCI contract on behalf of ExxonMobil pertaining to the engineering, procurement, fabrication and installation of subsea pipelines of production and water injection, rigid jumpers and other related subsea structures as part of Kizomba Satellites Phase 2 project, in the Angolan offshore. In 2013 Saipem continued to pursue the development of state of the art technologies for working in deep and ultra-deep waters, the design of floating liquefaction facilities, the development of new techniques and equipment for the installation and grounding of underwater pipes in extreme conditions. In particular, the innovative "Subsea Processing" system and floating liquefaction units (FLNG) were developed. In the process of subsea pipeline construction, new equipment was applied successfully, which enhanced the process and the quality of steel pipes’ soldering with carbon and stainless materials. Engineering & Construction Onshore In the Engineering & Construction onshore construction business, Saipem is one of the largest operators on turnkey contract base at a worldwide level in the Oil & Gas segment. Saipem operates in the construction of plants for hydrocarbon production (extraction, separation, stabilization, collection of hydrocarbons, water injection) and hydrocarbon treatment (removal and recovery of sulphur dioxide and carbon dioxide, fractioning of gaseous liquids, recovery of condensates) and in the installation of large onshore transport systems (pipelines, compression stations, terminals). Saipem preserves its own competitiveness through its technology excellence granted by its engineering hubs, its distinctive know-how in the construction of projects in the high-tech market of LNG and the management of large parts of engineering activities in cost efficient areas. In the medium term, underpinning upward trends in the oil service market, Saipem will be focused on taking advantage of the opportunities arising from the market in the plant and pipeline segments leveraging on its solid competitive position in the realization of complex projects in the strategic areas of Middle East, Caspian Sea, Northern and Western Africa and Russia. |
In 2013 revenues amounted to
euro 4,619 million, registering a decrease of 24.4% from
2012, due to lower levels of activity in Northern and
Western Africa and Middle East. Orders acquired amounted
to euro 2,566 million (euro 3,972 million in 2012). Among
the main orders acquired were: (i) an EPC contract on
behalf of Dangote Fertilizer for the realization of a new
ammonia and urea production complex to be realized in Edo
State, Nigeria. The contract encompasses the construction
of two twin production streams and related utilities and
off-site facilities; (ii) an EPC contract on behalf of
Star Refinery AS, for the realization of Socar Refinery
in Turkey, encompassing the engineering, procurement and
construction of a refinery and three crude refinery
jetties, to be built in the area adjacent to the Petkim
Petrochemical facility; (iii) an EPC contract on behalf
of Eni related to the improvements to the storage
infrastructure for crude oil of Tempa Rossa field, in
Italy. R&D activities aiming at improving proprietary process technologies and increasing the company’s environmental services portfolio concerned: (i) the study on the improvement of propriety technology for the production of urea, with the development of a new process "Urea Zero Emission"; (ii) the launch of the innovative project in order to improve energy efficiency.
|
- 64 -
Contents
Eni Fact Book Engineering & Construction
| Offshore drilling Saipem
is the only engineering and construction contractor that
provides both offshore and onshore drilling services to
oil companies. In the offshore drilling segment, Saipem
mainly operates in West Africa, the North Sea, the
Mediterranean Sea and the Middle East and boasts
significant market positions in the most complex segments
of deep and ultra-deep offshore, leveraging on the
outstanding technical features of its drilling platforms
and vessels, capable of drilling exploration and
development wells at a maximum water depth of 9,200
meters. In parallel, investments are ongoing to renew and
to keep up the production capacity of other fleet
equipment (upgrade equipment to the characteristics of
projects or to clients’ needs and purchase of
support equipment). |
Onshore drilling Saipem
operates in this segment as contractor for the major
international and national oil companies executing its
activity mainly in South America, Saudi Arabia, North
Africa and, at a lower extent, in Europe. In these areas
Saipem can leverage its knowledge of the market,
long-term relations with customers and synergies and
integration with other business areas. Saipem boasts a
solid track record in remote areas (in particular in the
Caspian Sea), leveraging on its own operational skills
and its ability to operate in complex environments. |
- 65 -
Contents
Eni Fact Book Engineering & Construction
- 66 -
Contents
Eni Fact Book Engineering & Construction
Main operating data |
2009 |
2010 |
2011 |
2012 |
2013 |
| Offshore pipelines laid | (km) | 1,000 | 1,365 | 1,682 | 1,435 | 1,106 | ||||||
| Onshore pipelines laid | 716 | 385 | 889 | 543 | 433 | |||||||
| Offshore structures installed | (tonnes) | 62,333 | 46,606 | 105,033 | 122,765 | 206,959 | ||||||
| Onshore structures installed | 76,543 | 874,428 | 353,480 | 261,410 | 178,252 | |||||||
| Offshore drilling | (km) | 140 | 130 | 178 | 194 | 201 | ||||||
| Onshore drilling | 719 | 881 | 985 | 953 | 821 | |||||||
| Offshore wells drilled | (units) | 54 | 44 | 64 | 104 | 127 | ||||||
| Onshore wells drilled | 241 | 279 | 307 | 373 | 373 |
| Drilling vessels |
| Name | Type | Drilling plant | Maximum depth (m) |
Drilling maximum (m) |
Other | |||||
| Perro Negro 2 | Jack up | Oilwell E 2000 | 90 | 6,500 | Heliport provided | |||||
| Perro Negro 3 | Jack up | Ideco E 2100 | 90 | 6,000 | Heliport provided | |||||
| Perro Negro 4 | Jack up | National 110 UE | 45 | 5,000 | Heliport provided | |||||
| Perro Negro 5 | Jack up | National 1320 UE | 90 | 6,500 | Heliport provided | |||||
| Perro Negro 7 | Jack up | National 1625 UE | 115 | 9,150 | Heliport provided | |||||
| Perro Negro 8 | Jack up | NOV SSDG 3000 | 107 | 9,100 | ||||||
| Scarabeo 3 | Semi-submersible drilling platform helped propulsion system | National 1625 DE | 550 | 7,600 | Heliport provided | |||||
| Scarabeo 4 | Semi-submersible drilling platform helped propulsion system | National 1625 DE | 550 | 7,600 | Heliport provided | |||||
| Scarabeo 5 | Semi-submersible drilling platform helped propulsion system | Emco C 3 | 1,900 | 8,000 | Heliport provided | |||||
| Scarabeo 6 | Semi-submersible drilling platform helped propulsion system | Oilwell E 3000 | 500 | 7,600 | Heliport provided | |||||
| Scarabeo 7 | Semi-submersible drilling platform helped propulsion system | Wirth SH 3000 EG | 1,500 | 8,000 | Heliport provided | |||||
| Scarabeo 8 | Semi-submersible drilling platform helped propulsion system | NOV AHD-500-4600 | 3,000 | 10,660 | Heliport provided | |||||
| Scarabeo 9 | Semi-submersible drilling platform helped propulsion system | Aker Maritime Ram Rig | 3,650 | 15,200 | Heliport provided | |||||
| Saipem 10000 | Ultra deep waters drillship, self-propelled, dynamic positioning | Wirth GH 4500 EG | 3,000 | 9,200 | Oil storage capacity: 140,000 bbl; heliport provided | |||||
| Saipem 12000 | Ultra deep waters drillship, self-propelled, dynamic positioning | NOV SSDG 5750 | 3,650 | 10,000 | Heliport provided | |||||
| Saipem TAD | Tender assisted drilling barge | Bentec 1500 Hp | 150 | 4,877 | Heliport provided | |||||
- 67 -
Contents
Eni Fact Book Engineering & Construction
| Construction vessels |
| Name | Type | Laying technique | Transport/lifting capability (t) | Maximum laying depth (m) | Pipelaying maximum diameter (inches) | |||||
| Saipem 7000 | Semi-submersible, self-propelled pipelay and DP vessel capable of lifting structures and J-laying pipelines in deep waters | J | 14,000 | 3,000 | 32 | |||||
| Saipem FDS | Multipurpose monohull dynamically positioned crane and pipelay (J-lay) vessel utilized for the development of hydrocarbon fields in deep waters | J | 600 | 2,100 | 22 | |||||
| Saipem FDS 2 | Multipurpose monohull dynamically positioned crane and pipelay (J-lay) vessel utilized for the development of hydrocarbon fields in deep waters. The vessel is equipped with a J-lay tower | J, S | 2,000 | 3,000 | 36 | |||||
| Castoro Sei | Semi-submersible pipelay vessel capable of laying large diameter pipe | S | 300 | 1,000 | 60 | |||||
| Castoro Sette | Semi-submersible pipelay vessel capable of laying large diameter pipe | S | 1,000 | 60 | ||||||
| Castoro Otto | Crane and pipelay vessel | S | 2,200 | 600 | 60 | |||||
| Saipem 3000 | Mono hull, self-propelled DP crane ship, capable of laying flexible pipes and umbilicals in deep waters and lifting structures | Reel, J, S | 2,200 | |||||||
| Bar Protector | Dynamically positioned dive support vessel used for deep waters diving operations and works on platforms | |||||||||
| Semac 1 | Semi-submersible pipelay vessel capable of laying pipes in deep waters | S | 318 | 600 | 58 | |||||
| Castoro II | Derrick/lay barge | S | 1,000 | 60 | ||||||
| Castoro 10 | Trench/lay barge | S | 300 | 60 | ||||||
| Castoro 12 | Shallow waters pipelay barge | S | 1.4 | 40 | ||||||
| S355 | Derrick/lay barge | S | 600 | 42 | ||||||
| Crawler | Derrick/lay barge | S | 540 | 60 | ||||||
| Castoro 16 | Post-trenching and back-filling barge of pipelines operating in ultra-shallow waters (1.4 meters). | 1.4 | 40 | |||||||
| Saibos 230 | Derrick pipelay barge equipped with a mobile crane for piling, marine terminals and fixed platforms | S | 30 | |||||||
| Ersai 1 (a) | Technical pontoon equipped with two crawler cranes, capable of carrying out installations whilst grounded on the seabed | 2,100 | ||||||||
| Ersai 2 (a) | Work barge equipped with a fixed crane capable of lifting structures | 200 | ||||||||
| Ersai 3 (a) | Self-propelled workshop/storage barge used as support vessel, with storage space and office space for 50 people | |||||||||
| Ersai 4 (a) | Self-propelled workshop/storage barge used as support vessel, with storage space and office space for 150 people | |||||||||
| Ersai 400 (a) | Accommodation barge for up to 400 people, equipped with antigas shelter for H2S leaks | |||||||||
| Castoro 9 | Launching/cargo barge | 5,000 | ||||||||
| Castoro XI | Heavy duty cargo barge | 15,000 | ||||||||
| Castoro 14 | Deck cargo barge | 10,000 | ||||||||
| Castoro 15 | Deck cargo barge | 6,200 | ||||||||
| S42 | Deck cargo barge | 8,000 | ||||||||
| S43 | Deck cargo barge | |||||||||
| S44 | Launching/cargo barge | 30,000 | ||||||||
| S45 | Launching/cargo barge | 20,000 | ||||||||
| S46 | Deck cargo barge | |||||||||
| S47 | Deck cargo barge | |||||||||
| S600 | Deck cargo barge | 30,000 | ||||||||
| FPSO - Cidade de Vitoria | FPSO unit with a production capacity of up to 100,000 barrels a day | |||||||||
| FPSO - Gimboa | FPSO unit with a production capacity of up to 60,000 barrels a day | |||||||||
| (a) Owned by the Saipem-managed joint venture ER SAI Caspian Contractor Llc. |
- 68 -
Contents
Eni Fact Book Financial Data
Profit and loss account |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Net sales from operations | 81,932 | 96,617 | 107,690 | 127,220 | 114,722 | ||||||||||
| Other income and revenues | 1,094 | 967 | 926 | 1,546 | 1,385 | ||||||||||
| Total revenues | 83,026 | 97,584 | 108,616 | 128,766 | 116,107 | ||||||||||
| Purchases, services and other | (58,091 | ) | (68,774 | ) | (78,795 | ) | (95,363 | ) | (90,213 | ) | |||||
| Payroll and related costs | (3,928 | ) | (4,428 | ) | (4,404 | ) | (4,613 | ) | (5,264 | ) | |||||
| Total operating expenses | (62,019 | ) | (73,202 | ) | (83,199 | ) | (99,976 | ) | (95,477 | ) | |||||
| Other operating income (expense) | 55 | 131 | 171 | (158 | ) | (71 | ) | ||||||||
| Depreciation, depletion, amortization and impairments | (9,267 | ) | (9,031 | ) | (8,785 | ) | (13,561 | ) | (11,703 | ) | |||||
| Operating profit | 11,795 | 15,482 | 16,803 | 15,071 | 8,856 | ||||||||||
| Finance income (expense) | (565 | ) | (749 | ) | (1,146 | ) | (1,347 | ) | (991 | ) | |||||
| Net income from investments | 534 | 1,112 | 2,123 | 2,881 | 6,115 | ||||||||||
| Profit before income taxes | 11,764 | 15,845 | 17,780 | 16,605 | 13,980 | ||||||||||
| Income taxes | (6,258 | ) | (8,581 | ) | (9,903 | ) | (11,661 | ) | (9,008 | ) | |||||
| Tax rate (%) | 53.2 | 54.2 | 55.7 | 70.2 | 64,4 | ||||||||||
| Net profit - continuing operations | 5,506 | 7,264 | 7,877 | 4,944 | 4,972 | ||||||||||
| Attributable to: | |||||||||||||||
| - Eni’s shareholders | 4,488 | 6,252 | 6,902 | 4,200 | 5,160 | ||||||||||
| - non-controlling interest | 1,018 | 1,012 | 975 | 744 | (188 | ) | |||||||||
| Net profit - discontinued operations | (189 | ) | 119 | (74 | ) | 3,732 | |||||||||
| Attributable to: | |||||||||||||||
| - Eni’s shareholders | (121 | ) | 66 | (42 | ) | 3,590 | |||||||||
| - non-controlling interest | (68 | ) | 53 | (32 | ) | 142 | |||||||||
| Net profit | 5,317 | 7,383 | 7,803 | 8,676 | 4,972 | ||||||||||
| Attributable to: | |||||||||||||||
| - Eni’s shareholders | 4,367 | 6,318 | 6,860 | 7,790 | 5,160 | ||||||||||
| - non-controlling interest | 950 | 1,065 | 943 | 886 | (188 | ) | |||||||||
| Net profit attributable to Eni’s shareholders - continuing operations | 4,488 | 6,252 | 6,902 | 4,200 | 5,160 | ||||||||||
| Exclusion of inventory holding (gains) losses | (191 | ) | (610 | ) | (724 | ) | (23 | ) | 438 | ||||||
| Exclusion of special items | 1,024 | 1,128 | 760 | 2,953 | (1,165 | ) | |||||||||
| of which: | |||||||||||||||
| - non-recurring items | 250 | (246 | ) | 69 | |||||||||||
| - other special items | 774 | 1,374 | 691 | 2,953 | (1,165 | ) | |||||||||
| Adjusted net profit attributable to Eni’s shareholders - continuing operations | 5,321 | 6,770 | 6,938 | 7,130 | 4,433 | ||||||||||
| Adjusted net profit attributable to Eni’s shareholders - discontinued operations | (114 | ) | 99 | 31 | 195 | ||||||||||
| Adjusted net profit attributable to Eni’s shareholders | 5,207 | 6,869 | 6,969 | 7,325 | 4,433 |
- 69 -
Contents
Eni Fact Book Financial Data
Summarized Group Balance Sheet |
(euro million) | Dec. 31, 2009 |
Dec. 31, 2010 |
Dec. 31, 2011 |
Dec. 31, 2012 |
Dec. 31, 2013 |
| Fixed assets | |||||||||||||||
| Property, plant and equipment | 59,765 | 67,404 | 73,578 | 63,466 | 62,506 | ||||||||||
| Inventories - Compulsory stock | 1,736 | 2,024 | 2,433 | 2,538 | 2,571 | ||||||||||
| Intangible assets | 11,469 | 11,172 | 10,950 | 4,487 | 3,877 | ||||||||||
| Equity-accounted investments and other investments | 6,244 | 6,090 | 6,242 | 9,347 | 6,961 | ||||||||||
| Receivables and securities held for operating purposes | 1,261 | 1,743 | 1,740 | 1,457 | 1,607 | ||||||||||
| Net payables related to capital expenditure | (749 | ) | (970 | ) | (1,576 | ) | (1,142 | ) | (1,256 | ) | |||||
| 79,726 | 87,463 | 93,367 | 80,153 | 76,266 | |||||||||||
| Net working capital | |||||||||||||||
| Inventories | 5,495 | 6,589 | 7,575 | 8,496 | 7,883 | ||||||||||
| Trade receivables | 14,916 | 17,221 | 17,709 | 19,966 | 21,213 | ||||||||||
| Trade payables | (10,078 | ) | (13,111 | ) | (13,436 | ) | (14,993 | ) | (15,529 | ) | |||||
| Tax payables and provisions for net deferred tax liabilities | (1,988 | ) | (2,684 | ) | (3,503 | ) | (3,204 | ) | (3,005 | ) | |||||
| Provisions | (10,319 | ) | (11,792 | ) | (12,735 | ) | (13,603 | ) | (13,167 | ) | |||||
| Other current assets and liabilities | (3,968 | ) | (1,286 | ) | 281 | 2,473 | 2,030 | ||||||||
| (5,942 | ) | (5,063 | ) | (4,109 | ) | (865 | ) | (575 | ) | ||||||
| Provisions for employee post-retirement benefits | (944 | ) | (1,032 | ) | (1,039 | ) | (1,374 | ) | (1,245 | ) | |||||
| Assets held for sale including related liabilities | 266 | 479 | 206 | 155 | 2,156 | ||||||||||
| CAPITAL EMPLOYED, NET | 73,106 | 81,847 | 88,425 | 78,069 | 76,602 | ||||||||||
| Shareholders’ equity | |||||||||||||||
| attributable to: - Eni’s shareholders | 46,073 | 51,206 | 55,472 | 59,060 | 58,210 | ||||||||||
| attributable to: - non-controlling interest | 3,978 | 4,522 | 4,921 | 3,498 | 2,964 | ||||||||||
| 50,051 | 55,728 | 60,393 | 62,558 | 61,174 | |||||||||||
| Net borrowings | 23,055 | 26,119 | 28,032 | 15,511 | 15,428 | ||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 73,106 | 81,847 | 88,425 | 78,069 | 76,602 |
- 70 -
Contents
Eni Fact Book Financial Data
Summarized Group Cash Flow Statement |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Net profit - continuing operations | 5,506 | 7,264 | 7,877 | 4,944 | 4,972 | ||||||||||
| Adjustments to reconcile net profit to net cash provided by operating activities: | |||||||||||||||
| - depreciation, depletion and amortization and other non-monetary items | 8,607 | 8,521 | 8,606 | 11,349 | 9,578 | ||||||||||
| - net gains on disposal of assets | (226 | ) | (558 | ) | (1,176 | ) | (875 | ) | (3,770 | ) | |||||
| - dividends, interest, taxes and other changes | 6,379 | 8,829 | 9,918 | 11,925 | 9,162 | ||||||||||
| Changes in working capital related to operations | (874 | ) | (1,158 | ) | (1,696 | ) | (3,373 | ) | 486 | ||||||
| Dividends received, taxes paid, interest (paid) received during the period | (8,637 | ) | (8,758 | ) | (9,766 | ) | (11,614 | ) | (9,459 | ) | |||||
| Net cash provided by operating activities - continuing operations | 10,755 | 14,140 | 13,763 | 12,356 | 10,969 | ||||||||||
| Net cash provided by operating activities - discontinued operations | 381 | 554 | 619 | 15 | |||||||||||
| Net cash provided by operating activities | 11,136 | 14,694 | 14,382 | 12,371 | 10,969 | ||||||||||
| Capital expenditure - continuing operations | (12,216 | ) | (12,450 | ) | (11,909 | ) | (12,761 | ) | (12,750 | ) | |||||
| Capital expenditure - discontinued operations | (1,479 | ) | (1,420 | ) | (1,529 | ) | (756 | ) | |||||||
| Capital expenditure | (13,695 | ) | (13,870 | ) | (13,438 | ) | (13,517 | ) | (12,750 | ) | |||||
| Investments and purchase of consolidated subsidiaries and businesses | (2,323 | ) | (410 | ) | (360 | ) | (569 | ) | (317 | ) | |||||
| Disposals | 3,595 | 1,113 | 1,912 | 6,014 | 6,360 | ||||||||||
| Other cash flow related to capital expenditure, investments and disposals | (295 | ) | 228 | 627 | (136 | ) | (253 | ) | |||||||
| Free cash flow | (1,582 | ) | 1,755 | 3,123 | 4,163 | 4,009 | |||||||||
| Borrowings (repayment) of debt related to financing activities | 396 | (26 | ) | 41 | (83 | ) | (3,983 | ) | |||||||
| Changes in short and long-term financial debt | 3,841 | 2,272 | 1,104 | 5,947 | 1,778 | ||||||||||
| Dividends paid and changes in non-controlling interests and reserves | (2,956 | ) | (4,099 | ) | (4,327 | ) | (3,746 | ) | (4,231 | ) | |||||
| Effect of changes in consolidation and exchange differences | (30 | ) | 39 | 10 | (16 | ) | (50 | ) | |||||||
| NET CASH FLOW FOR THE PERIOD | (331 | ) | (59 | ) | (49 | ) | 6,265 | (2,477 | ) |
Changes in net borrowings |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Free cash flow | (1,582 | ) | 1,755 | 3,123 | 4,163 | 4,009 | |||||||||
| Net borrowings of acquired companies | (33 | ) | (2 | ) | (21 | ) | |||||||||
| Net borrowings of divested companies | (192 | ) | 12,446 | (16 | ) | ||||||||||
| Exchange differences on net borrowings and other changes | (141 | ) | (687 | ) | (517 | ) | (340 | ) | 342 | ||||||
| Dividends paid and changes in non-controlling interest and reserves | (2,956 | ) | (4,099 | ) | (4,327 | ) | (3,746 | ) | (4,231 | ) | |||||
| CHANGE IN NET BORROWINGS | (4,679 | ) | (3,064 | ) | (1,913 | ) | 12,521 | 83 |
Net sales from operations |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Exploration & Production | 23,801 | 29,497 | 29,121 | 35,881 | 31,268 | ||||||||||
| Gas & Power | 29,272 | 27,806 | 33,093 | 36,200 | 32,124 | ||||||||||
| Refining & Marketing | 31,769 | 43,190 | 51,219 | 62,656 | 57,329 | ||||||||||
| Versalis | 4,203 | 6,141 | 6,491 | 6,418 | 5,859 | ||||||||||
| Engineering & Construction | 9,664 | 10,581 | 11,834 | 12,771 | 11,611 | ||||||||||
| Other activities | 88 | 105 | 85 | 119 | 80 | ||||||||||
| Corporate and financial companies | 1,280 | 1,386 | 1,365 | 1,369 | 1,453 | ||||||||||
| Impact of unrealized intragroup profit elimination (a) | (66 | ) | 100 | (54 | ) | (75 | ) | 18 | |||||||
| Consolidation adjustment | (18,079 | ) | (22,189 | ) | (25,464 | ) | (28,119 | ) | (25,020 | ) | |||||
| 81,932 | 96,617 | 107,690 | 127,220 | 114,722 |
| (a) This item concerned mainly intragroup sales of commodities, services and capital goods recorded in the assets of the purchasing business segment as of end of the period. |
Net sales to customers |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Exploration & Production | 10,171 | 12,947 | 10,677 | 15,559 | 13,050 | ||||||||||
| Gas & Power | 28,517 | 26,837 | 31,749 | 34,169 | 30,909 | ||||||||||
| Refining & Marketing | 30,804 | 41,845 | 48,428 | 59,690 | 54,427 | ||||||||||
| Versalis | 3,965 | 5,898 | 6,202 | 6,007 | 5,570 | ||||||||||
| Engineering & Construction | 8,349 | 8,779 | 10,510 | 11,664 | 10,593 | ||||||||||
| Other activities | 64 | 80 | 62 | 79 | 41 | ||||||||||
| Corporate and financial companies | 128 | 131 | 116 | 127 | 114 | ||||||||||
| Impact of unrealized intragroup profit elimination | (66 | ) | 100 | (54 | ) | (75 | ) | 18 | |||||||
| 81,932 | 96,617 | 107,690 | 127,220 | 114,722 |
- 71 -
Contents
Eni Fact Book Financial Data
Net sales by geographic area of destination |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 26,655 | 45,896 | 31,906 | 33,998 | 32,044 | |||||
| Other EU Countries | 24,331 | 21,125 | 35,920 | 35,908 | 31,629 | |||||
| Rest of Europe | 5,213 | 4,172 | 7,153 | 9,610 | 11,458 | |||||
| Africa | 10,174 | 13,068 | 11,333 | 14,681 | 12,079 | |||||
| Americas | 7,080 | 6,282 | 9,612 | 15,282 | 7,741 | |||||
| Asia | 8,208 | 5,785 | 10,258 | 16,394 | 18,547 | |||||
| Other areas | 271 | 289 | 1,508 | 1,347 | 1,224 | |||||
| Total outside Italy | 55,277 | 50,721 | 75,784 | 93,222 | 82,678 | |||||
| 81,932 | 96,617 | 107,690 | 127,220 | 114,722 |
Net sales by geographic area of origin |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 47,666 | 55,455 | 62,789 | 72,744 | 73,580 | |||||
| Other EU Countries | 15,629 | 16,983 | 20,914 | 19,528 | 15,638 | |||||
| Rest of Europe | 2,058 | 1,986 | 3,101 | 3,736 | 3,292 | |||||
| Africa | 9,313 | 12,586 | 9,384 | 13,989 | 11,844 | |||||
| Americas | 3,610 | 5,588 | 7,107 | 12,058 | 5,782 | |||||
| Asia | 3,447 | 3,692 | 3,937 | 4,423 | 3,713 | |||||
| Other areas | 209 | 327 | 458 | 742 | 873 | |||||
| Total outside Italy | 34,266 | 41,162 | 44,901 | 54,476 | 41,142 | |||||
| 81,932 | 96,617 | 107,690 | 127,220 | 114,722 |
Purchases, services and other |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Production costs - raw, ancillary and consumable materials and goods | 40,093 | 48,407 | 60,826 | 74,767 | 66,912 | ||||||||||
| Production costs - services | 13,296 | 14,939 | 13,551 | 15,354 | 18,023 | ||||||||||
| Operating leases and other | 2,505 | 2,997 | 3,045 | 3,434 | 3,673 | ||||||||||
| Net provisions for contingencies | 1,025 | 1,401 | 527 | 871 | 857 | ||||||||||
| Other expenses | 1,466 | 1,252 | 1,140 | 1,342 | 1,134 | ||||||||||
| less: | |||||||||||||||
| capitalized direct costs associated with self-constructed tangible and intangible assets | (294 | ) | (222 | ) | (294 | ) | (405 | ) | (386 | ) | |||||
| 58,091 | 68,774 | 78,795 | 95,363 | 90,213 |
Principal accountant fees and services |
(euro thousand) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Audit fees | 30,748 | 21,114 | 22,031 | 23,042 | 28,023 | |||||
| Audit-related fees | 276 | 183 | 1,113 | 1,351 | 1,574 | |||||
| Tax fees | 51 | 166 | 323 | 25 | 21 | |||||
| All other fees | 3 | |||||||||
| 31,075 | 21,463 | 23,467 | 24,421 | 29,618 |
Payroll and related costs |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Wages and salaries | 3,064 | 3,299 | 3,435 | 3,886 | 4,366 | ||||||||||
| Social security contributions | 620 | 631 | 675 | 674 | 651 | ||||||||||
| Cost related to defined benefit plans | 128 | 154 | 148 | 103 | 92 | ||||||||||
| Other costs | 307 | 557 | 334 | 187 | 409 | ||||||||||
| less: | |||||||||||||||
| capitalized direct costs associated with self-constructed tangible and intangible assets | (191 | ) | (213 | ) | (188 | ) | (237 | ) | (254 | ) | |||||
| 3,928 | 4,428 | 4,404 | 4,613 | 5,264 |
- 72 -
Contents
Eni Fact Book Financial Data
Depreciation, depletion, amortization and impairments |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Exploration & Production | 6,789 | 6,928 | 6,251 | 7,988 | 7,812 | ||||||||||
| Gas & Power | 435 | 425 | 413 | 405 | 329 | ||||||||||
| Refining & Marketing | 408 | 333 | 351 | 331 | 309 | ||||||||||
| Versalis | 83 | 83 | 90 | 90 | 95 | ||||||||||
| Engineering & Construction | 433 | 513 | 596 | 683 | 721 | ||||||||||
| Other activities | 2 | 2 | 2 | 1 | 1 | ||||||||||
| Corporate and financial companies | 83 | 79 | 75 | 65 | 61 | ||||||||||
| Impact of unrealized intragroup profit elimination | (17 | ) | (20 | ) | (23 | ) | (25 | ) | (25 | ) | |||||
| Total depreciation, depletion and amortization | 8,216 | 8,343 | 7,755 | 9,538 | 9,303 | ||||||||||
| Exploration & Production | 576 | 123 | 189 | 547 | 19 | ||||||||||
| Gas & Power | 426 | 154 | 2,494 | 1,685 | |||||||||||
| Refining & Marketing | 346 | 76 | 488 | 843 | 633 | ||||||||||
| Versalis | 121 | 52 | 160 | 112 | 44 | ||||||||||
| Engineering & Construction | 2 | 3 | 35 | 25 | |||||||||||
| Other activities | 6 | 8 | 4 | 2 | 19 | ||||||||||
| Corporate and financial companies | |||||||||||||||
| Total impairment | 1,051 | 688 | 1,030 | 4,023 | 2,400 | ||||||||||
| 9,267 | 9,031 | 8,785 | 13,561 | 11,703 |
Operating profit by Division |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Exploration & Production | 9,120 | 13,866 | 15,887 | 18,470 | 14,871 | ||||||||||
| Gas & Power | 1,914 | 896 | (326 | ) | (3,219 | ) | (2,992 | ) | |||||||
| Refining & Marketing | (102 | ) | 149 | (273 | ) | (1,296 | ) | (1,517 | ) | ||||||
| Versalis | (675 | ) | (86 | ) | (424 | ) | (681 | ) | (725 | ) | |||||
| Engineering & Construction | 881 | 1,302 | 1,422 | 1,442 | (83 | ) | |||||||||
| Other activities | (436 | ) | (1,384 | ) | (427 | ) | (300 | ) | (337 | ) | |||||
| Corporate and financial companies | (420 | ) | (361 | ) | (319 | ) | (341 | ) | (399 | ) | |||||
| Impact of unrealized intragroup profit elimination | 1,513 | 1,100 | 1,263 | 996 | 38 | ||||||||||
| 11,795 | 15,482 | 16,803 | 15,071 | 8,856 |
- 73 -
Contents
Eni Fact Book Financial Data
NON-GAAP measures
Reconciliation of reported operating profit and reported net profit to results on an adjusted basis
| Management evaluates Group
and business performance on the basis of adjusted
operating profit and adjusted net profit, which are
arrived at by excluding inventory holding gains or
losses, special items and, in determining the business
segments’ adjusted results, finance charges on
finance debt and interest income. The adjusted operating
profit of each business segment reports gains and losses
on derivative financial instruments entered into to
manage exposure to movements in foreign currency exchange
rates which impact industrial margins and translation of
commercial payables and receivables. Accordingly also
currency translation effects recorded through profit and
loss are reported within business segments’ adjusted
operating profit. The taxation effect of the items
excluded from adjusted operating or net profit is
determined based on the specific rate of taxes applicable
to each of them. The Italian statutory tax rate is
applied to finance charges and income (38% is applied to
charges recorded by companies in the energy sector,
whilst a tax rate of 27.5% is applied to all other
companies). Adjusted operating profit and adjusted net
profit are non-GAAP financial measures under either IFRS
or US GAAP. Management includes them in order to
facilitate a comparison of base business performance
across periods, and to allow financial analysts to
evaluate Eni’s trading performance on the basis of
their forecasting models. The following is a description
of items that are excluded from the calculation of
adjusted results. Inventory holding gain or loss is the difference between the cost of sales of the volumes sold in the period based on the cost of supplies of the same period and the cost of sales of the volumes sold calculated using the weighted average cost method of inventory accounting. Special items include certain significant income or charges pertaining to either: (i) infrequent or unusual events and transactions, being identified as non-recurring items under such circumstances; (ii) certain events or transactions which are not considered to be representative of the ordinary course of business, as in the case of environmental provisions, restructuring charges, |
asset impairments or write
ups and gains or losses on divestments even though they
occurred in past periods or are likely to occur in future
ones; or (iii) exchange rate differences and derivatives
relating to industrial activities and commercial payables
and receivables, particularly exchange rate derivatives
to manage commodity pricing formulas which are quoted in
a currency other than the functional currency. Those
items are reclassified in operating profit with a
corresponding adjustment to net finance charges,
notwithstanding the handling of foreign currency Exchange
risks is made centrally by netting off
naturally-occurring opposite positions and then dealing
with any residual risk exposure in the exchange rate
market. As provided for in Decision No. 15519 of July 27,
2006 of the Italian market regulator (Consob), non
recurring material income or charges are to be clearly
reported in the management’s discussion and
financial tables. Also, special items include gains and
losses on re-measurement at fair value of certain non
hedging commodity derivatives, including the ineffective
portion of cash flow hedges and certain derivatives
financial instruments embedded in the pricing formula of
long-term gas supply agreements of the Exploration &
Production Division. Finance charges or income related to net borrowings excluded from the adjusted net profit of business segments are comprised of interest charges on finance debt and interest income earned on cash and cash equivalents not related to operations. Therefore, the adjusted net profit of business segments includes finance charges or income deriving from certain segment-operated assets, i.e., interest income on certain receivable financing and securities related to operations and finance charge pertaining to the accretion of certain provisions recorded on a discounted basis (as in the case of the asset retirement obligations in the Exploration & Production Division). Finance charges or interest income and related taxation effects excluded from the adjusted net profit of the business segments are allocated on the aggregate Corporate and financial companies. For a reconciliation of adjusted operating profit and adjusted net profit to reported operating profit and reported net profit see tables below. |
- 74 -
Contents
Eni Fact Book Financial Data
| 2009 | (euro million) |
Other
activities(a) |
Discontinued
operations |
||||
Exploration
& Production |
Gas
& Power (a) |
Refining
& Marketing |
Versalis |
Engineering
& Construction |
Corporate
and financial companies |
Snam |
Other
activities |
Impact
of unrealized intragroup profit elimination |
Group |
Snam |
Consolidation
adjustments |
Total |
Continuing operations |
|||||||||||||||
| Reported operating profit | 9,120 | 1,914 | (102 | ) | (675 | ) | 881 | (420 | ) | 1,773 | (436 | ) | 12,055 | (1,773 | ) | 1,513 | (260 | ) | 11,795 | |||||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | 326 | (792 | ) | 121 | (345 | ) | (345 | ) | ||||||||||||||||||||||||||||||||||
| Exclusion of special items | ||||||||||||||||||||||||||||||||||||||||||
| of which: | ||||||||||||||||||||||||||||||||||||||||||
| Non-recurring (income) charges | 250 | 250 | 250 | |||||||||||||||||||||||||||||||||||||||
| Other special (income) charges: | 369 | (218 | ) | 513 | 113 | (11 | ) | 78 | 23 | 178 | 1,045 | (23 | ) | (23 | ) | 1,022 | ||||||||||||||||||||||||||
| environmental charges | 7 | 72 | 12 | 207 | 298 | (12 | ) | (12 | ) | 286 | ||||||||||||||||||||||||||||||||
| net asset impairments | 618 | 27 | 389 | 121 | 2 | 5 | 1,162 | 1,162 | ||||||||||||||||||||||||||||||||||
| gains on disposal of assets | (270 | ) | (1 | ) | (2 | ) | 3 | (5 | ) | (2 | ) | (277 | ) | 5 | 5 | (272 | ) | |||||||||||||||||||||||||
| risk provisions | 115 | 17 | (4 | ) | 128 | 128 | ||||||||||||||||||||||||||||||||||||
| provision
for redundancy incentives |
31 | 9 | 22 | 10 | 38 | 16 | 8 | 134 | (16 | ) | (16 | ) | 118 | |||||||||||||||||||||||||||||
| commodity derivatives | (15 | ) | (292 | ) | 39 | (3 | ) | (16 | ) | (287 | ) | (287 | ) | |||||||||||||||||||||||||||||
| exchange
rate differences and derivatives |
5 | (83 | ) | (24 | ) | (15 | ) | (117 | ) | (117 | ) | |||||||||||||||||||||||||||||||
| other | 40 | (36 | ) | 4 | 4 | |||||||||||||||||||||||||||||||||||||
| Special items of operating profit | 369 | (218 | ) | 513 | 113 | 239 | 78 | 23 | 178 | 1,295 | (23 | ) | (23 | ) | 1,272 | |||||||||||||||||||||||||||
| Adjusted operating profit | 9,489 | 2,022 | (381 | ) | (441 | ) | 1,120 | (342 | ) | 1,796 | (258 | ) | 13,005 | (1,796 | ) | 1,513 | (283 | ) | 12,722 | |||||||||||||||||||||||
| Net finance (expense) income (b) | (23 | ) | 6 | (443 | ) | 14 | 12 | (434 | ) | (14 | ) | (14 | ) | (448 | ) | |||||||||||||||||||||||||||
| Net income (expense) from investments (b) | 243 | 297 | 75 | 49 | 35 | 1 | 700 | (35 | ) | (35 | ) | 665 | ||||||||||||||||||||||||||||||
| Income taxes (b) | (5,828 | ) | (670 | ) | 94 | 90 | (277 | ) | 77 | (597 | ) | (3 | ) | (7,114 | ) | 597 | (83 | ) | 514 | (6,600 | ) | |||||||||||||||||||||
| Tax rate (%) | 60.0 | 28.8 | .. | 23.7 | 32.4 | 53.6 | 51.0 | |||||||||||||||||||||||||||||||||||
| Adjusted net profit | 3,881 | 1,655 | (212 | ) | (351 | ) | 892 | (708 | ) | 1,248 | (245 | ) | (3 | ) | 6,157 | (1,248 | ) | 1,430 | 182 | 6,339 | ||||||||||||||||||||||
| of which attributable to: | ||||||||||||||||||||||||||||||||||||||||||
| - non-controlling interest | 950 | 68 | 1,018 | |||||||||||||||||||||||||||||||||||||||
| - Eni’s shareholders | 5,207 | 114 | 5,321 | |||||||||||||||||||||||||||||||||||||||
| Reported net profit attributable to Eni’s shareholders | 4,367 | 121 | 4,488 | |||||||||||||||||||||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | (191 | ) | (191 | ) | ||||||||||||||||||||||||||||||||||||||
| Exclusion of special items: | 1,031 | (7 | ) | 1,024 | ||||||||||||||||||||||||||||||||||||||
| - non-recurring charges | 250 | 250 | ||||||||||||||||||||||||||||||||||||||||
| - other special (income) charges | 781 | (7 | ) | 774 | ||||||||||||||||||||||||||||||||||||||
| Adjusted net profit attributable to Eni’s shareholders | 5,207 | 114 | 5,321 | |||||||||||||||||||||||||||||||||||||||
(a) Following the announced divestment plan, Snam results are reclassified from "Gas & Power" sector to "Other activities" and accounted as discontinued operations. (b) Excluding special items. |
- 75 -
Contents
Eni Fact Book Financial Data
| 2010 | (euro million) |
Other
activities(a) |
Discontinued
operations |
||||
Exploration
& Production |
Gas
& Power (a) |
Refining
& Marketing |
Versalis |
Engineering
& Construction |
Corporate
and financial companies |
Snam |
Other
activities |
Impact
of unrealized intragroup profit elimination |
Group |
Snam |
Consolidation
adjustments |
Total |
Continuing operations |
|||||||||||||||
| Reported operating profit | 13,866 | 896 | 149 | (86 | ) | 1,302 | (361 | ) | 2,000 | (1,384 | ) | (271 | ) | 16,111 | (2,000 | ) | 1,371 | (629 | ) | 15,482 | ||||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | (117 | ) | (659 | ) | (105 | ) | (881 | ) | (881 | ) | ||||||||||||||||||||||||||||||||
| Exclusion of special items | ||||||||||||||||||||||||||||||||||||||||||
| of which: | ||||||||||||||||||||||||||||||||||||||||||
| Non-recurring (income) charges | (270 | ) | 24 | (246 | ) | (246 | ) | |||||||||||||||||||||||||||||||||||
| Other special (income) charges: | 32 | 759 | 329 | 95 | 96 | 46 | 1,179 | 2,536 | (46 | ) | (46 | ) | 2,490 | |||||||||||||||||||||||||||||
| environmental charges | 30 | 16 | 169 | 9 | 1,145 | 1,369 | (9 | ) | (9 | ) | 1,360 | |||||||||||||||||||||||||||||||
| net asset impairments | 127 | 426 | 76 | 52 | 3 | 10 | 8 | 702 | (10 | ) | (10 | ) | 692 | |||||||||||||||||||||||||||||
| gains on disposal of assets | (241 | ) | (16 | ) | 5 | 4 | (248 | ) | (4 | ) | (4 | ) | (252 | ) | ||||||||||||||||||||||||||||
| risk provisions | 78 | 2 | 8 | 7 | 95 | 95 | ||||||||||||||||||||||||||||||||||||
|
provision for redundancy incentives |
97 | 52 | 113 | 26 | 14 | 88 | 23 | 10 | 423 | (23 | ) | (23 | ) | 400 | ||||||||||||||||||||||||||||
| commodity derivatives | 30 | (10 | ) | (22 | ) | (2 | ) | (2 | ) | |||||||||||||||||||||||||||||||||
|
exchange rate differences and derivatives |
14 | 195 | (10 | ) | 17 | 216 | 216 | |||||||||||||||||||||||||||||||||||
| other | 5 | (38 | ) | 5 | 9 | (19 | ) | (19 | ) | |||||||||||||||||||||||||||||||||
| Special items of operating profit | 32 | 489 | 329 | 95 | 24 | 96 | 46 | 1,179 | 2,290 | (46 | ) | (46 | ) | 2,244 | ||||||||||||||||||||||||||||
| Adjusted operating profit | 13,898 | 1,268 | (181 | ) | (96 | ) | 1,326 | (265 | ) | 2,046 | (205 | ) | (271 | ) | 17,520 | (2,046 | ) | 1,371 | (675 | ) | 16,845 | |||||||||||||||||||||
| Net finance (expense) income (b) | (205 | ) | 34 | 33 | (783 | ) | 22 | (9 | ) | (908 | ) | (22 | ) | (22 | ) | (930 | ) | |||||||||||||||||||||||||
| Net income (expense) from investments (b) | 274 | 362 | 92 | 1 | 10 | 44 | (2 | ) | 781 | (44 | ) | (44 | ) | 737 | ||||||||||||||||||||||||||||
| Income taxes (b) | (8,358 | ) | (397 | ) | 33 | 22 | (375 | ) | 181 | (667 | ) | 102 | (9,459 | ) | 667 | (78 | ) | 589 | (8,870 | ) | ||||||||||||||||||||||
| Tax rate (%) | 59.8 | 23.9 | .. | 27.4 | 31.6 | 54.4 | 53.3 | |||||||||||||||||||||||||||||||||||
| Adjusted net profit | 5,609 | 1,267 | (56 | ) | (73 | ) | 994 | (867 | ) | 1,445 | (216 | ) | (169 | ) | 7,934 | (1,445 | ) | 1,293 | (152 | ) | 7,782 | |||||||||||||||||||||
| of which attributable to: | ||||||||||||||||||||||||||||||||||||||||||
| - non-controlling interest | 1,065 | (53 | ) | 1,012 | ||||||||||||||||||||||||||||||||||||||
| - Eni’s shareholders | 6,869 | (99 | ) | 6,770 | ||||||||||||||||||||||||||||||||||||||
| Reported net profit attributable to Eni’s shareholders | 6,318 | (66 | ) | 6,252 | ||||||||||||||||||||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | (610 | ) | (610 | ) | ||||||||||||||||||||||||||||||||||||||
| Exclusion of special items: | 1,161 | (33 | ) | 1,128 | ||||||||||||||||||||||||||||||||||||||
| - non-recurring charges | (246 | ) | (246 | ) | ||||||||||||||||||||||||||||||||||||||
| - other special (income) charges | 1,407 | (33 | ) | 1,374 | ||||||||||||||||||||||||||||||||||||||
| Adjusted net profit attributable to Eni’s shareholders | 6,869 | (99 | ) | 6,770 | ||||||||||||||||||||||||||||||||||||||
(a) Following the divestment of regulated businesses in Italy, Snam results are reclassified from “Gas & Power” sector to “Other activities” and accounted as discontinued operations. (b) Excluding special items. |
- 76 -
Contents
Eni Fact Book Financial Data
| 2011 | (euro million) |
Other
activities(a) |
Discontinued
operations |
||||
Exploration
& Production |
Gas
& Power (a) |
Refining
& Marketing |
Versalis |
Engineering
& Construction |
Corporate
and financial companies |
Snam |
Other
activities |
Impact
of unrealized intragroup profit elimination |
Group |
Snam |
Consolidation
adjustments |
Total |
Continuing operations |
|||||||||||||||
| Reported operating profit | 15,887 | (326 | ) | (273 | ) | (424 | ) | 1,422 | (319 | ) | 2,084 | (427 | ) | (189 | ) | 17,435 | (2,084 | ) | 1,452 | (632 | ) | 16,803 | ||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | (166 | ) | (907 | ) | (40 | ) | (1,113 | ) | (1,113 | ) | ||||||||||||||||||||||||||||||||
| Exclusion of special items | ||||||||||||||||||||||||||||||||||||||||||
| of which: | ||||||||||||||||||||||||||||||||||||||||||
| Non-recurring (income) charges | 10 | 59 | 69 | 69 | ||||||||||||||||||||||||||||||||||||||
| Other special (income) charges: | 188 | 245 | 641 | 181 | 21 | 53 | 27 | 142 | 1,498 | (27 | ) | (27 | ) | 1,471 | ||||||||||||||||||||||||||||
| environmental charges | 34 | 1 | 10 | 141 | 186 | (10 | ) | (10 | ) | 176 | ||||||||||||||||||||||||||||||||
| net asset impairments | 190 | 154 | 488 | 160 | 35 | (9 | ) | 4 | 1,022 | 9 | 9 | 1,031 | ||||||||||||||||||||||||||||||
| gains on disposal of assets | (63 | ) | 10 | 4 | (1 | ) | (4 | ) | (7 | ) | (61 | ) | 4 | 4 | (57 | ) | ||||||||||||||||||||||||||
| risk provisions | 77 | 8 | (6 | ) | 9 | 88 | 88 | |||||||||||||||||||||||||||||||||||
| provision
for redundancy incentives |
44 | 34 | 81 | 17 | 10 | 9 | 6 | 8 | 209 | (6 | ) | (6 | ) | 203 | ||||||||||||||||||||||||||||
| commodity derivatives | 1 | 45 | (3 | ) | (28 | ) | 15 | 15 | ||||||||||||||||||||||||||||||||||
| exchange
rate differences and derivatives |
(2 | ) | (82 | ) | (4 | ) | 3 | (85 | ) | (85 | ) | |||||||||||||||||||||||||||||||
| other | 18 | 17 | 27 | 51 | 24 | (13 | ) | 124 | (24 | ) | (24 | ) | 100 | |||||||||||||||||||||||||||||
| Special items of operating profit | 188 | 245 | 641 | 191 | 21 | 53 | 27 | 201 | 1,567 | (27 | ) | (27 | ) | 1,540 | ||||||||||||||||||||||||||||
| Adjusted operating profit | 16,075 | (247 | ) | (539 | ) | (273 | ) | 1,443 | (266 | ) | 2,111 | (226 | ) | (189 | ) | 17,889 | (2,111 | ) | 1,452 | (659 | ) | 17,230 | ||||||||||||||||||||
| Net finance (expense) income (b) | (231 | ) | 43 | (876 | ) | 19 | 5 | (1,040 | ) | (19 | ) | (19 | ) | (1,059 | ) | |||||||||||||||||||||||||||
| Net income (expense) from investments (b) | 624 | 363 | 99 | 95 | 1 | 44 | (3 | ) | 1,223 | (44 | ) | (44 | ) | 1,179 | ||||||||||||||||||||||||||||
| Income taxes (b) | (9,603 | ) | 93 | 176 | 67 | (440 | ) | 388 | (918 | ) | (1 | ) | 78 | (10,160 | ) | 918 | (195 | ) | 723 | (9,437 | ) | |||||||||||||||||||||
| Tax rate (%) | 58.3 | .. | .. | 28.6 | 42.2 | 56.2 | 54.4 | |||||||||||||||||||||||||||||||||||
| Adjusted net profit | 6,865 | 252 | (264 | ) | (206 | ) | 1,098 | (753 | ) | 1,256 | (225 | ) | (111 | ) | 7,912 | (1,256 | ) | 1,257 | 1 | 7,913 | ||||||||||||||||||||||
| of which attributable to: | ||||||||||||||||||||||||||||||||||||||||||
| - non-controlling interest | 943 | 32 | 975 | |||||||||||||||||||||||||||||||||||||||
| - Eni’s shareholders | 6,969 | (31 | ) | 6,938 | ||||||||||||||||||||||||||||||||||||||
| Reported net profit attributable to Eni’s shareholders | 6,860 | 42 | 6,902 | |||||||||||||||||||||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | (724 | ) | (724 | ) | ||||||||||||||||||||||||||||||||||||||
| Exclusion of special items: | 833 | (73 | ) | 760 | ||||||||||||||||||||||||||||||||||||||
| - non-recurring charges | 69 | 69 | ||||||||||||||||||||||||||||||||||||||||
| - other special (income) charges | 764 | (73 | ) | 691 | ||||||||||||||||||||||||||||||||||||||
| Adjusted net profit attributable to Eni’s shareholders | 6,969 | (31 | ) | 6,938 | ||||||||||||||||||||||||||||||||||||||
(a) Following the divestment of regulated businesses in Italy, Snam results are reclassified from “Gas & Power” sector to “Other activities” and accounted as discontinued operations. (b) Excluding special items. |
- 77 -
Contents
Eni Fact Book Financial Data
| 2012 | (euro million) |
Other
activities(a) |
Discontinued
operations |
||||
Exploration
& Production |
Gas
& Power (a) |
Refining
& Marketing |
Versalis |
Engineering
& Construction |
Corporate
and financial companies |
Snam |
Other
activities |
Impact
of unrealized intragroup profit elimination |
Group |
Snam |
Consolidation
adjustments |
Total |
Continuing operations |
|||||||||||||||
| Reported operating profit | 18,470 | (3,219 | ) | (1,296 | ) | (681 | ) | 1,442 | (341 | ) | 1,679 | (300 | ) | 208 | 15,962 | (1,679 | ) | 788 | (891 | ) | 15,071 | |||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | 163 | (29 | ) | 63 | (214 | ) | (17 | ) | (17 | ) | ||||||||||||||||||||||||||||||||
| Exclusion of special items: | ||||||||||||||||||||||||||||||||||||||||||
| environmental charges | (2 | ) | 40 | 71 | 25 | 134 | (71 | ) | (71 | ) | 63 | |||||||||||||||||||||||||||||||
| net asset impairments | 550 | 2,494 | 846 | 112 | 25 | 2 | 4,029 | 4,029 | ||||||||||||||||||||||||||||||||||
| gains on disposal of assets | (542 | ) | (3 | ) | 5 | 1 | 3 | (22 | ) | (12 | ) | (570 | ) | 22 | 22 | (548 | ) | |||||||||||||||||||||||||
| risk provisions | 7 | 831 | 49 | 18 | 5 | 35 | 945 | 945 | ||||||||||||||||||||||||||||||||||
| provision
for redundancy incentives |
6 | 5 | 19 | 14 | 7 | 11 | 2 | 2 | 66 | (2 | ) | (2 | ) | 64 | ||||||||||||||||||||||||||||
| commodity derivatives | 1 | 1 | (3 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||
| exchange
rate differences and derivatives |
(9 | ) | (51 | ) | (8 | ) | (11 | ) | (79 | ) | (79 | ) | ||||||||||||||||||||||||||||||
| other | 54 | 138 | 53 | 26 | 271 | 271 | ||||||||||||||||||||||||||||||||||||
| Special items of operating profit | 67 | 3,412 | 1,004 | 135 | 32 | 16 | 51 | 78 | 4,795 | (51 | ) | (51 | ) | 4,744 | ||||||||||||||||||||||||||||
| Adjusted operating profit | 18,537 | 356 | (321 | ) | (483 | ) | 1,474 | (325 | ) | 1,730 | (222 | ) | (6 | ) | 20,740 | (1,730 | ) | 788 | (942 | ) | 19,798 | |||||||||||||||||||||
| Net finance (expense) income (b) | (264 | ) | 29 | (11 | ) | (3 | ) | (7 | ) | (865 | ) | (54 | ) | (24 | ) | (1,199 | ) | 54 | 54 | (1,145 | ) | |||||||||||||||||||||
| Net income (expense) from investments (b) | 436 | 261 | 63 | 2 | 55 | 99 | 38 | (1 | ) | 953 | (38 | ) | (38 | ) | 915 | |||||||||||||||||||||||||||
| Income taxes (b) | (11,283 | ) | (173 | ) | 90 | 89 | (411 | ) | 115 | (712 | ) | 2 | (12,283 | ) | 712 | (123 | ) | 589 | (11,694 | ) | ||||||||||||||||||||||
| Tax rate (%) | 60.3 | 26.8 | .. | 27.0 | 41.5 | 59.9 | 59.8 | |||||||||||||||||||||||||||||||||||
| Adjusted net profit | 7,426 | 473 | (179 | ) | (395 | ) | 1,111 | (976 | ) | 1,002 | (247 | ) | (4 | ) | 8,211 | (1,002 | ) | 665 | (337 | ) | 7,874 | |||||||||||||||||||||
| of which attributable to: | ||||||||||||||||||||||||||||||||||||||||||
| - non-controlling interest | 886 | (142 | ) | 744 | ||||||||||||||||||||||||||||||||||||||
| - Eni’s shareholders | 7,325 | (195 | ) | 7,130 | ||||||||||||||||||||||||||||||||||||||
| Reported net profit attributable to Eni’s shareholders | 7,790 | (3,590 | ) | 4,200 | ||||||||||||||||||||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | (23 | ) | (23 | ) | ||||||||||||||||||||||||||||||||||||||
| Exclusion of special items: | (442 | ) | 3,395 | 2,953 | ||||||||||||||||||||||||||||||||||||||
| Adjusted net profit attributable to Eni’s shareholders | 7,325 | (195 | ) | 7,130 | ||||||||||||||||||||||||||||||||||||||
(a) Following the divestment of regulated businesses in Italy, Snam results are reclassified from “Gas & Power” sector to “Other activities” and accounted as discontinued operations. (b) Excluding special items. |
- 78 -
Contents
Eni Fact Book Financial Data
| 2013 | (euro million) |
Exploration
& Production |
Gas
& Powe |
Refining
& Marketing |
Versalis |
Engineering
& Construction |
Other
activities |
Corporate
and financial companies |
Impact
of unrealized intragroup profit elimination |
GROUP |
||||||||||
| Reported operating profit | 14,871 | (2,992 | ) | (1,517 | ) | (725 | ) | (83 | ) | (337 | ) | (399 | ) | 38 | 8,856 | ||||||||||||
| Exclusion of inventory holding (gains) losses | 191 | 221 | 213 | 91 | 716 | ||||||||||||||||||||||
| Exclusion of special items: | |||||||||||||||||||||||||||
| environmental charges | (1 | ) | 93 | 61 | 52 | 205 | |||||||||||||||||||||
| net asset impairments | 19 | 1,685 | 633 | 44 | 19 | 2,400 | |||||||||||||||||||||
| gains on disposal of assets | (283 | ) | 1 | (9 | ) | 107 | (3 | ) | (187 | ) | |||||||||||||||||
| risk provisions | 7 | 292 | 4 | 31 | 334 | ||||||||||||||||||||||
| provision
for redundancy incentives |
52 | 10 | 91 | 23 | 2 | 20 | 72 | 270 | |||||||||||||||||||
| commodity derivatives | (2 | ) | 314 | 5 | (1 | ) | (1 | ) | 315 | ||||||||||||||||||
| exchange
rate differences and derivatives |
(2 | ) | (186 | ) | (2 | ) | (5 | ) | (195 | ) | |||||||||||||||||
| other | (16 | ) | 23 | 3 | (109 | ) | 8 | (5 | ) | (96 | ) | ||||||||||||||||
| Special items of operating profit | (225 | ) | 2,138 | 814 | 126 | (1 | ) | 127 | 67 | 3,046 | |||||||||||||||||
| Adjusted operating profit | 14,646 | (663 | ) | (482 | ) | (386 | ) | (84 | ) | (210 | ) | (332 | ) | 129 | 12,618 | ||||||||||||
| Net finance (expense) income (a) | (264 | ) | 24 | (4 | ) | (2 | ) | (5 | ) | 4 | (554 | ) | (801 | ) | |||||||||||||
| Net income (expense) from investments (a) | 367 | 100 | 70 | (12 | ) | 1 | 290 | 816 | |||||||||||||||||||
| Income taxes (a) | (8,797 | ) | 293 | 184 | 50 | (152 | ) | 124 | (90 | ) | (8,388 | ) | |||||||||||||||
| Tax rate (%) | 59.6 | .. | .. | .. | 66.4 | ||||||||||||||||||||||
| Adjusted net profit | 5,952 | (246 | ) | (232 | ) | (338 | ) | (253 | ) | (205 | ) | (472 | ) | 39 | 4,245 | ||||||||||||
| of which attributable to: | |||||||||||||||||||||||||||
| - non-controlling interest | (188 | ) | |||||||||||||||||||||||||
| - Eni’s shareholders | 4,433 | ||||||||||||||||||||||||||
| Reported net profit attributable to Eni’s shareholders | 5,160 | ||||||||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | 438 | ||||||||||||||||||||||||||
| Exclusion of special items: | (1,165 | ) | |||||||||||||||||||||||||
| Adjusted net profit attributable to Eni’s shareholders | 4,433 | ||||||||||||||||||||||||||
(a) Excluding special items. |
- 79 -
Contents
Eni Fact Book Financial Data
Breakdown of special items (a) |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Non-recurring charges (income) | 250 | (246 | ) | 69 | |||||||||||
| of which: estimated charge from the possible resolution of the TSKJ matter | 250 | ||||||||||||||
| of which: settlement/payments on antitrust and other Authorities proceedings | (246 | ) | 69 | ||||||||||||
| Other special charges (income): | 1,045 | 2,536 | 1,498 | 4,795 | 3,046 | ||||||||||
| - environmental charges | 298 | 1,369 | 186 | 134 | 205 | ||||||||||
| - asset impairments | 1,162 | 702 | 1,022 | 4,029 | 2,400 | ||||||||||
| - gains on disposal of assets | (277 | ) | (248 | ) | (61 | ) | (570 | ) | (187 | ) | |||||
| - risk provisions | 128 | 95 | 88 | 945 | 334 | ||||||||||
| - provision for redundancy incentives | 134 | 423 | 209 | 66 | 270 | ||||||||||
| - commodity derivatives | (287 | ) | (2 | ) | 15 | (1 | ) | 315 | |||||||
| - exchange rate differences and derivatives | (117 | ) | 216 | (85 | ) | (79 | ) | (195 | ) | ||||||
| - other | 4 | (19 | ) | 124 | 271 | (96 | ) | ||||||||
| Special items of operating profit | 1,295 | 2,290 | 1,567 | 4,795 | 3,046 | ||||||||||
| Net finance (income) expense | 117 | (181 | ) | 89 | 202 | 190 | |||||||||
| of which: | |||||||||||||||
| exchange rate differences and derivatives | 117 | (216 | ) | 85 | 79 | 195 | |||||||||
| Net income (expense) from investments | 179 | (324 | ) | (883 | ) | (5,408 | ) | (5,299 | ) | ||||||
| of which: | |||||||||||||||
| gains on disposals of assets | (332 | ) | (1,118 | ) | (2,354 | ) | (3,599 | ) | |||||||
| of which: international transport | (1,044 | ) | |||||||||||||
| of which: divestment of the 28.57% of Eni’s interest in Eni East Africa | (3,359 | ) | |||||||||||||
| of which: Galp | (311 | ) | (98 | ) | |||||||||||
| of which: Snam | (2,019 | ) | (75 | ) | |||||||||||
| of which: Padana Energia | (169 | ) | |||||||||||||
| of which: GreenStream | (93 | ) | |||||||||||||
| gains on investment revaluation | (3,151 | ) | (1,682 | ) | |||||||||||
| of which: Galp | (1,700 | ) | |||||||||||||
| of which: Snam | (1,451 | ) | |||||||||||||
| of which: Artic Russia | (1,682 | ) | |||||||||||||
| impairments | 179 | 28 | 191 | 156 | 11 | ||||||||||
| Income taxes | (560 | ) | (624 | ) | 60 | (31 | ) | 898 | |||||||
| of which: | |||||||||||||||
| impairment on deferred tax assets E&P | 72 | ||||||||||||||
| impairment on deferred tax assets of Italian subsidiaries | 803 | 954 | |||||||||||||
| deferred tax adjustment on PSAs | 552 | 490 | |||||||||||||
| re-allocation of tax impact on intercompany dividends and other special items | (219 | ) | 29 | 29 | 147 | 64 | |||||||||
| taxes on special items | (413 | ) | (653 | ) | (521 | ) | (981 | ) | (610 | ) | |||||
| Total special items of net profit | 1,031 | 1,161 | 833 | (442 | ) | (1,165 | ) |
(a) Including discontinued operations. |
Adjusted operating profit by Division |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Exploration & Production | 9,489 | 13,898 | 16,075 | 18,537 | 14,646 | ||||||||||
| Gas & Power | 2,022 | 1,268 | (247 | ) | 356 | (663 | ) | ||||||||
| Refining & Marketing | (381 | ) | (181 | ) | (539 | ) | (321 | ) | (482 | ) | |||||
| Versalis | (441 | ) | (96 | ) | (273 | ) | (483 | ) | (386 | ) | |||||
| Engineering & Construction | 1,120 | 1,326 | 1,443 | 1,474 | (84 | ) | |||||||||
| Other activities | (258 | ) | (205 | ) | (226 | ) | (222 | ) | (210 | ) | |||||
| Corporate and financial companies | (342 | ) | (265 | ) | (266 | ) | (325 | ) | (332 | ) | |||||
| Impact of unrealized intragroup profit elimination | 1,513 | 1,100 | 1,263 | 782 | 129 | ||||||||||
| 12,722 | 16,845 | 17,230 | 19,798 | 12,618 |
- 80 -
Contents
Eni Fact Book Financial Data
Adjusted net profit by Division |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Exploration & Production | 3,881 | 5,609 | 6,865 | 7,426 | 5,952 | ||||||||||
| Gas & Power | 1,655 | 1,267 | 252 | 473 | (246 | ) | |||||||||
| Refining & Marketing | (212 | ) | (56 | ) | (264 | ) | (179 | ) | (232 | ) | |||||
| Versalis | (351 | ) | (73 | ) | (206 | ) | (395 | ) | (338 | ) | |||||
| Engineering & Construction | 892 | 994 | 1,098 | 1,111 | (253 | ) | |||||||||
| Other activities | (245 | ) | (216 | ) | (225 | ) | (247 | ) | (205 | ) | |||||
| Corporate and financial companies | (708 | ) | (867 | ) | (753 | ) | (976 | ) | (472 | ) | |||||
| Impact of unrealized intragroup profit elimination | 1,427 | 1,124 | 1,146 | 661 | 39 | ||||||||||
| 6,339 | 7,782 | 7,913 | 7,874 | 4,245 | |||||||||||
| of which attributable to: | |||||||||||||||
| Non-controlling interest | 1,018 | 1,012 | 975 | 744 | 188 | ||||||||||
| Eni’s shareholders | 5,321 | 6,770 | 6,938 | 7,130 | 4,433 |
Finance income (expense) |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Income from equity instruments | 163 | ||||||||||||||
| Exchange differences, net | (106 | ) | 92 | (111 | ) | 131 | 36 | ||||||||
| Finance income (expense) related to net borrowings and other | (614 | ) | (634 | ) | (809 | ) | (1,078 | ) | (873 | ) | |||||
| Net income from securities | 3 | 10 | 9 | 9 | 8 | ||||||||||
| Financial expense due to the passage of time (accretion discount) | (197 | ) | (236 | ) | (235 | ) | (308 | ) | (240 | ) | |||||
| Income (expense) on derivatives | (6 | ) | (131 | ) | (112 | ) | (251 | ) | (92 | ) | |||||
| less: | |||||||||||||||
| Finance expense capitalized | 192 | 150 | 112 | 150 | 170 | ||||||||||
| (565 | ) | (749 | ) | (1,146 | ) | (1,347 | ) | (991 | ) | ||||||
| of which, net income from receivables and securities held for financing operating activities and interest on tax credits | 40 | 64 | 67 | 61 | 71 |
Income (expense on) from investments |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Share of profit of equity-accounted investments | 655 | 673 | 634 | 526 | 369 | ||||||||||
| Share of loss of equity-accounted investments | (241 | ) | (149 | ) | (106 | ) | (233 | ) | (117 | ) | |||||
| Gains on disposals | 16 | 332 | 1,121 | 349 | 3,598 | ||||||||||
| Dividends | 164 | 264 | 659 | 431 | 400 | ||||||||||
| Decreases (increases) in the provision for losses on investments | (59 | ) | (31 | ) | (28 | ) | (15 | ) | |||||||
| Other income (expense), net | (1 | ) | 23 | (157 | ) | 1,823 | 1,865 | ||||||||
| 534 | 1,112 | 2,123 | 2,881 | 6,115 |
- 81 -
Contents
Eni Fact Book Financial Data
Property, plant and equipment by Division (at year end) |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Property, plant and equipment by segment, gross | |||||||||||||||
| Exploration & Production | 71,189 | 85,494 | 96,561 | 103,369 | 107,380 | ||||||||||
| Gas & Power | 4,750 | 4,155 | 4,206 | 4,373 | 4,438 | ||||||||||
| Refining & Marketing | 13,378 | 14,177 | 14,884 | 15,744 | 16,284 | ||||||||||
| Versalis | 5,174 | 5,226 | 5,438 | 5,589 | 5,898 | ||||||||||
| Engineering & Construction | 9,163 | 10,714 | 11,809 | 12,621 | 12,774 | ||||||||||
| Other activities - Snam (*) | 17,290 | 18,355 | 19,449 | ||||||||||||
| Other activities | 1,592 | 1,614 | 1,617 | 1,617 | 1,522 | ||||||||||
| Corporate and financial companies | 373 | 372 | 422 | 470 | 589 | ||||||||||
| Impact of unrealized intragroup profit elimination | (343 | ) | (495 | ) | (523 | ) | (486 | ) | (490 | ) | |||||
| 122,566 | 139,612 | 153,863 | 143,297 | 148,395 | |||||||||||
| Property, plant and equipment by segment, net | |||||||||||||||
| Exploration & Production | 34,462 | 40,521 | 45,527 | 47,533 | 48,157 | ||||||||||
| Gas & Power | 3,235 | 2,614 | 2,501 | 2,412 | 1,137 | ||||||||||
| Refining & Marketing | 4,397 | 4,766 | 4,758 | 4,439 | 4,127 | ||||||||||
| Versalis | 853 | 990 | 960 | 928 | 1,105 | ||||||||||
| Engineering & Construction | 6,305 | 7,422 | 7,969 | 8,213 | 7,928 | ||||||||||
| Other activities - Snam (*) | 10,543 | 11,262 | 12,016 | ||||||||||||
| Other activities | 79 | 78 | 76 | 76 | 72 | ||||||||||
| Corporate and financial companies | 179 | 171 | 196 | 227 | 322 | ||||||||||
| Impact of unrealized intragroup profit elimination | (288 | ) | (420 | ) | (425 | ) | (362 | ) | (342 | ) | |||||
| 59,765 | 67,404 | 73,578 | 63,466 | 62,506 |
(*) Property, plant and equipment pertaining to the segment Other activities - Snam has been reclassified from the Gas & Power segment. |
Capital expenditure by Division |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Exploration & Production | 9,486 | 9,690 | 9,435 | 10,307 | 10,475 | ||||||||||
| Gas & Power | 207 | 265 | 192 | 225 | 232 | ||||||||||
| Refining & Marketing | 635 | 711 | 866 | 842 | 619 | ||||||||||
| Versalis | 145 | 251 | 216 | 172 | 314 | ||||||||||
| Engineering & Construction | 1,630 | 1,552 | 1,090 | 1,011 | 902 | ||||||||||
| Other activities | 44 | 22 | 10 | 14 | 21 | ||||||||||
| Corporate and financial companies | 57 | 109 | 128 | 152 | 190 | ||||||||||
| Impact of unrealized intragroup profit elimination | 12 | (150 | ) | (28 | ) | 38 | (3 | ) | |||||||
| Capital expenditure - continuing operations | 12,216 | 12,450 | 11,909 | 12,761 | 12,750 | ||||||||||
| Capital expenditure - discontinued operations | 1,479 | 1,420 | 1,529 | 756 | |||||||||||
| Capital expenditure | 13,695 | 13,870 | 13,438 | 13,517 | 12,750 | ||||||||||
| Investments | 2,323 | 410 | 360 | 569 | 317 | ||||||||||
| Capital expenditure and investments | 16,018 | 14,280 | 13,798 | 14,086 | 13,067 |
Capital expenditure by geographic area of origin |
(euro million) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 1,719 | 1,624 | 2,058 | 2,130 | 2,003 | |||||
| Other European Union Countries | 1,454 | 1,710 | 1,343 | 1,259 | 1,084 | |||||
| Rest of Europe | 574 | 724 | 1,168 | 1,626 | 1,552 | |||||
| Africa | 4,645 | 5,083 | 4,369 | 4,725 | 4,556 | |||||
| Americas | 1,207 | 1,156 | 978 | 1,184 | 1,503 | |||||
| Asia | 2,033 | 1,941 | 1,608 | 1,663 | 1,799 | |||||
| Other areas | 584 | 212 | 385 | 174 | 253 | |||||
| Total outside Italy | 10,497 | 10,826 | 9,851 | 10,631 | 10,747 | |||||
| Capital expenditure - continuing operations | 12,216 | 12,450 | 11,909 | 12,761 | 12,750 | |||||
| Capital expenditure - discontinued operations | ||||||||||
| Italy | 1,479 | 1,420 | 1,529 | 756 | ||||||
| Capital expenditure | 13,695 | 13,870 | 13,438 | 13,517 | 12,750 |
- 82 -
Contents
Eni Fact Book Financial Data
| Net borrowings | (euro million) |
| Debt and bonds | Cash and cash equivalents | Securities held for trading and other securities held for non-operating purposes | Financing receivables held for non-operating purposes | Total | ||||||
| 2009 | |||||||||||||||
| Short-term debt | 6,736 | (1,608 | ) | (64 | ) | (73 | ) | 4,991 | |||||||
| Long-term debt | 18,064 | 18,064 | |||||||||||||
| 24,800 | (1,608 | ) | (64 | ) | (73 | ) | 23,055 | ||||||||
| 2010 | |||||||||||||||
| Short-term debt | 7,478 | (1,549 | ) | (109 | ) | (6 | ) | 5,814 | |||||||
| Long-term debt | 20,305 | 20,305 | |||||||||||||
| 27,783 | (1,549 | ) | (109 | ) | (6 | ) | 26,119 | ||||||||
| 2011 | |||||||||||||||
| Short-term debt | 6,495 | (1,500 | ) | (37 | ) | (28 | ) | 4,930 | |||||||
| Long-term debt | 23,102 | 23,102 | |||||||||||||
| 29,597 | (1,500 | ) | (37 | ) | (28 | ) | 28,032 | ||||||||
| 2012 | |||||||||||||||
| Short-term debt | 5,184 | (7,765 | ) | (34 | ) | (1,153 | ) | (3,768 | ) | ||||||
| Long-term debt | 19,279 | 19,279 | |||||||||||||
| 24,463 | (7,765 | ) | (34 | ) | (1,153 | ) | 15,511 | ||||||||
| 2013 | |||||||||||||||
| Short-term debt | 4,891 | (5,288 | ) | (5,037 | ) | (126 | ) | (5,560 | ) | ||||||
| Long-term debt | 20,988 | 20,988 | |||||||||||||
| 25,879 | (5,288 | ) | (5,037 | ) | (126 | ) | 15,428 |
- 83 -
Contents
Eni Fact Book Employees
Employees
Employees at year end |
(units) | 2009 |
2010 |
2011 |
2012 |
2013 |
| Italy | 3,883 | 3,906 | 3,797 | 3,933 | 4,133 | |||||||
| Exploration & Production | Outside Italy | 6,388 | 6,370 | 6,628 | 7,371 | 8,219 | ||||||
| 10,271 | 10,276 | 10,425 | 11,304 | 12,352 | ||||||||
| Italy | 2,585 | 2,479 | 2,310 | 2,126 | 2,178 | |||||||
| Gas & Power | Outside Italy | 2,562 | 2,593 | 2,485 | 2,626 | 2,336 | ||||||
| 5,147 | 5,072 | 4,795 | 4,752 | 4,514 | ||||||||
| Italy | 6,467 | 6,162 | 5,790 | 5,505 | 5,313 | |||||||
| Refining & Marketing | Outside Italy | 1,699 | 1,860 | 1,801 | 1,620 | 1,629 | ||||||
| 8,166 | 8,022 | 7,591 | 7,125 | 6,942 | ||||||||
| Italy | 5,045 | 4,903 | 4,750 | 4,606 | 4,615 | |||||||
| Versalis | Outside Italy | 1,023 | 1,069 | 1,054 | 1,062 | 1,093 | ||||||
| 6,068 | 5,972 | 5,804 | 5,668 | 5,708 | ||||||||
| Italy | 5,174 | 4,915 | 5,197 | 5,186 | 5,136 | |||||||
| Engineering & Construction | Outside Italy | 30,795 | 33,911 | 33,364 | 38,201 | 42,073 | ||||||
| 35,969 | 38,826 | 38,561 | 43,387 | 47,209 | ||||||||
| Italy | 968 | 939 | 880 | 871 | 818 | |||||||
| Other activities | Outside Italy | - | - | - | - | - | ||||||
| 968 | 939 | 880 | 871 | 818 | ||||||||
| Italy | 4,706 | 4,497 | 4,334 | 4,577 | 4,589 | |||||||
| Corporate and financial companies | Outside Italy | 166 | 164 | 184 | 154 | 157 | ||||||
| 4,872 | 4,661 | 4,518 | 4,731 | 4,746 | ||||||||
| Italy | 28,828 | 27,801 | 27,058 | 26,804 | 26,782 | |||||||
| Total employees at year end | Outside Italy | 42,633 | 45,967 | 45,516 | 51,034 | 55,507 | ||||||
| 71,461 | 73,768 | 72,574 | 77,838 | 82,289 | ||||||||
| of which: senior managers | 1,438 | 1,454 | 1,468 | 1,474 | 1,475 |
- 84 -
Contents
Eni Fact Book Supplemental oil and gas information
Supplemental oil and gas information
| Oil and natural gas reserves Eni’s criteria concerning evaluation and classification of proved developed and undeveloped reserves follow Regulation S-X 4-10 of the U.S. Securities and Exchange Commission and have been disclosed in accordance with FASB Extractive Activities - Oil & Gas (Topic 932). Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible, from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations, prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time. Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions. In 2013, the average price for the marker Brent crude oil was $108 per barrel. Net proved reserves exclude interests and royalties owned by others. Proved reserves are classified as either developed or undeveloped. Developed oil and gas reserves are reserves that can be expected to be recovered through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well. Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. Since 1991, Eni has requested qualified independent oil engineering companies to carry out an independent evaluation1 of part of its proved reserves on a rotational basis. The description of qualifications of the person primarily responsible of the reserves audit is included in the third party audit report2. In the preparation of their reports, independent evaluators rely, without independent verification, upon data furnished by Eni with respect to property interest, production, current costs of operation and development, sale agreements, prices and other factual information and data that were accepted as represented by the independent evaluators. These data, equally used by Eni in its internal process, include logs, directional surveys, core and PVT (Pressure Volume Temperature) analysis, maps, oil/gas/water production/injection data of wells, reservoir studies and technical analysis relevant to field performance, long-term development plans, future capital and operating costs. In order to calculate the economic value of Eni equity reserves, actual |
prices applicable to
hydrocarbon sales, price adjustments required by
applicable contractual arrangements, and other pertinent
information are provided. In 2013, Ryder Scott Company
and DeGolyer and MacNaughton2 provided an
independent evaluation of about 30% of Eni’s total
proved reserves as of December 31, 20133,
confirming, as in previous years, the reasonableness of
Eni’s internal evaluations. In the three-year period
from 2011 to 2013, 92% of Eni’s total proved
reserves were subject to independent evaluation. As of
December 31, 2013, the principal properties not subjected
to independent evaluation in the last three years are
M’Boundi (Congo) and Elgin Franklin (United
Kingdom). Eni operates under production sharing
agreements, in several of the foreign jurisdictions where
it has oil and gas exploration and production activities.
Reserves of oil and natural gas to which Eni is entitled
under PSA arrangements are shown in accordance with
Eni’s economic interest in the volumes of oil and
natural gas estimated to be recoverable in future years.
Such reserves include estimated quantities allocated to
Eni for recovery of costs, income taxes owed by Eni but
settled by its joint venture partners (which are
state-owned entities) out of Eni’s share of
production and Eni’s net equity share after cost
recovery. Proved oil and gas reserves associated with
PSAs represented 49%, 47% and 51% of total proved
reserves as of December 31, 2011, 2012 and 2013,
respectively, on an oil-equivalent basis. Similar effects
as PSAs apply to service and "buy-back"
contracts; proved reserves associated with such contracts
represented 1%, 2% and 3% of total proved reserves on an
oil-equivalent basis as of December 31, 2011, 2012 and
2013, respectively. Oil and gas reserves quantities
include: (i) oil and natural gas quantities in excess of
cost recovery which the Company has an obligation to
purchase under certain PSAs with governments or
authorities, whereby the Company serves as producer of
reserves. Reserves volumes associated with oil and gas
deriving from such obligation represent 0.8%, 1.1% and 1%
of total proved reserves as of December 31, 2011, 2012
and 2013, respectively, on an oil equivalent basis; (ii)
volumes of natural gas used for own consumption; and
(iii) the quantities of hydrocarbons related to the
Angola LNG plant. Numerous uncertainties are inherent in
estimating quantities of proved reserves, in projecting
future productions and development expenditure. The
accuracy of any reserve estimate is a function of the
quality of available data and engineering and geological
interpretation and evaluation. The results of drilling,
testing and production after the date of the estimate may
require substantial upward or downward revisions. In
addition, changes in oil and natural gas prices have an
effect on the quantities of Eni’s proved reserves
since estimates of reserves are based on prices and costs
relevant to the date when such estimates are made.
Consequently, the evaluation of reserves could also
significantly differ from actual oil and natural gas
volumes that will be produced. The following table presents yearly changes in estimated proved reserves, developed and undeveloped, of crude oil (including condensate and natural gas liquids) and natural gas as of December 31, 2011, 2012 and 2013. |
(1) From 1991 to
2002 DeGolyer and MacNaughton, from 2003 also Ryder Scott.
(2) The reports of independent engineers are available on Eni
website eni.com, section Publications/Annual Report 2013.
(3) Including reserves of equity-accounted entities.
- 85 -
Contents
Eni Fact Book Supplemental oil and gas information
| Movements in net proved hydrocarbons reserves | (mmboe) |
| Italy (a) | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2011 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Reserves at December 31, 2010 | 724 | 601 | 2,096 | 1,133 | 1,126 | 295 | 230 | 127 | 6,332 | ||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 554 | 405 | 1,215 | 812 | 543 | 139 | 141 | 117 | 3,926 | ||||||||||||||||||
| undeveloped | 170 | 196 | 881 | 321 | 583 | 156 | 89 | 10 | 2,406 | ||||||||||||||||||
| Purchase of minerals in place | 2 | 2 | |||||||||||||||||||||||||
| Revisions of previous estimates | 48 | 94 | 88 | 12 | (137 | ) | (26 | ) | 10 | 17 | 106 | ||||||||||||||||
| Improved recovery | 2 | 2 | 2 | 6 | |||||||||||||||||||||||
| Extensions and discoveries | 1 | 13 | 3 | 14 | 40 | 71 | |||||||||||||||||||||
| Production | (68 | ) | (78 | ) | (158 | ) | (133 | ) | (39 | ) | (39 | ) | (42 | ) | (11 | ) | (568 | ) | |||||||||
| Sales of minerals in place | (2 | ) | (7 | ) | (9 | ) | |||||||||||||||||||||
| Reserves at December 31, 2011 | 707 | 630 | 2,031 | 1,021 | 950 | 230 | 238 | 133 | 5,940 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Reserves at December 31, 2010 | 23 | 28 | 317 | 143 | 511 | ||||||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 22 | 5 | 43 | 26 | 96 | ||||||||||||||||||||||
| undeveloped | 1 | 23 | 274 | 117 | 415 | ||||||||||||||||||||||
| Purchase of minerals in place | |||||||||||||||||||||||||||
| Revisions of previous estimates | 37 | 73 | 13 | 123 | |||||||||||||||||||||||
| Improved recovery | 1 | 1 | |||||||||||||||||||||||||
| Extensions and discoveries | 19 | 268 | 233 | 520 | |||||||||||||||||||||||
| Production | (2 | ) | (1 | ) | (2 | ) | (4 | ) | (9 | ) | |||||||||||||||||
| Sales of minerals in place | |||||||||||||||||||||||||||
| Reserves at December 31, 2011 | 21 | 83 | 656 | 386 | 1,146 | ||||||||||||||||||||||
| Reserves at December 31, 2011 | 707 | 630 | 2,052 | 1,104 | 950 | 886 | 624 | 133 | 7,086 | ||||||||||||||||||
| Developed | 540 | 374 | 1,194 | 746 | 482 | 134 | 188 | 112 | 3,770 | ||||||||||||||||||
| consolidated subsidiaries | 540 | 374 | 1,175 | 742 | 482 | 129 | 162 | 112 | 3,716 | ||||||||||||||||||
| equity-accounted entities | 19 | 4 | 5 | 26 | 54 | ||||||||||||||||||||||
| Undeveloped | 167 | 256 | 858 | 358 | 468 | 752 | 436 | 21 | 3,316 | ||||||||||||||||||
| consolidated subsidiaries | 167 | 256 | 856 | 279 | 468 | 101 | 76 | 21 | 2,224 | ||||||||||||||||||
| equity-accounted entities | 2 | 79 | 651 | 360 | 1,092 |
(a) Including, approximately, 767 billion cubic feet of natural gas held in storage at December 31, 2010 and 2011. |
- 86 -
Contents
Eni Fact Book Supplemental oil and gas information
| Movements in net proved hydrocarbons reserves | (mmboe) |
| Italy (a) | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2012 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Reserves at December 31, 2011 | 707 | 630 | 2,031 | 1,021 | 950 | 230 | 238 | 133 | 5,940 | ||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 540 | 374 | 1,175 | 742 | 482 | 129 | 162 | 112 | 3,716 | ||||||||||||||||||
| undeveloped | 167 | 256 | 856 | 279 | 468 | 101 | 76 | 21 | 2,224 | ||||||||||||||||||
| Purchase of minerals in place | |||||||||||||||||||||||||||
| Revisions of previous estimates | 24 | 20 | 67 | 82 | 91 | (5 | ) | 34 | 8 | 321 | |||||||||||||||||
| Improved recovery | 1 | 20 | 7 | 28 | |||||||||||||||||||||||
| Extensions and discoveries | 4 | 6 | 10 | 86 | 85 | 9 | 200 | ||||||||||||||||||||
| Production | (69 | ) | (66 | ) | (213 | ) | (126 | ) | (37 | ) | (41 | ) | (45 | ) | (13 | ) | (610 | ) | |||||||||
| Sales of minerals in place | (142 | ) | (22 | ) | (48 | ) | (212 | ) | |||||||||||||||||||
| Reserves at December 31, 2012 | 524 | 591 | 1,915 | 1,048 | 1,041 | 184 | 236 | 128 | 5,667 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Reserves at December 31, 2011 | 21 | 83 | 656 | 386 | 1,146 | ||||||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 19 | 4 | 5 | 26 | 54 | ||||||||||||||||||||||
| undeveloped | 2 | 79 | 651 | 360 | 1,092 | ||||||||||||||||||||||
| Purchase of minerals in place | |||||||||||||||||||||||||||
| Revisions of previous estimates | 8 | 247 | 255 | ||||||||||||||||||||||||
| Improved recovery | |||||||||||||||||||||||||||
| Extensions and discoveries | 1 | 3 | 10 | 135 | 149 | ||||||||||||||||||||||
| Production | (2 | ) | (1 | ) | (6 | ) | (4 | ) | (13 | ) | |||||||||||||||||
| Sales of minerals in place | (4 | ) | (34 | ) | (38 | ) | |||||||||||||||||||||
| Reserves at December 31, 2012 | 20 | 81 | 668 | 730 | 1,499 | ||||||||||||||||||||||
| Reserves at December 31, 2012 | 524 | 591 | 1,935 | 1,129 | 1,041 | 852 | 966 | 128 | 7,166 | ||||||||||||||||||
| Developed | 406 | 349 | 1,100 | 716 | 458 | 190 | 190 | 107 | 3,516 | ||||||||||||||||||
| consolidated subsidiaries | 406 | 349 | 1,080 | 716 | 458 | 108 | 170 | 107 | 3,394 | ||||||||||||||||||
| equity-accounted entities | 20 | 82 | 20 | 122 | |||||||||||||||||||||||
| Undeveloped | 118 | 242 | 835 | 413 | 583 | 662 | 776 | 21 | 3,650 | ||||||||||||||||||
| consolidated subsidiaries | 118 | 242 | 835 | 332 | 583 | 76 | 66 | 21 | 2,273 | ||||||||||||||||||
| equity-accounted entities | 81 | 586 | 710 | 1,377 |
(a) Including approximately 767 billion cubic feet of natural gas held in storage at December 31, 2011. |
- 87 -
Contents
Eni Fact Book Supplemental oil and gas information
| Movements in net proved hydrocarbons reserves | (mmboe) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2013 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Reserves at December 31, 2012 | 524 | 591 | 1,915 | 1,048 | 1,041 | 184 | 236 | 128 | 5,667 | ||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 406 | 349 | 1,080 | 716 | 458 | 108 | 170 | 107 | 3,394 | ||||||||||||||||||
| undeveloped | 118 | 242 | 835 | 332 | 583 | 76 | 66 | 21 | 2,273 | ||||||||||||||||||
| Purchase of minerals in place | 4 | 4 | |||||||||||||||||||||||||
| Revisions of previous estimates | 38 | 35 | 59 | 169 | 30 | 81 | 37 | 59 | 508 | ||||||||||||||||||
| Improved recovery | 5 | 5 | |||||||||||||||||||||||||
| Extensions and discoveries | 4 | 1 | 6 | 53 | 38 | 6 | 108 | ||||||||||||||||||||
| Production | (67 | ) | (57 | ) | (201 | ) | (120 | ) | (36 | ) | (40 | ) | (39 | ) | (11 | ) | (571 | ) | |||||||||
| Sales of minerals in place | (13 | ) | (13 | ) | |||||||||||||||||||||||
| Reserves at December 31, 2013 | 499 | 557 | 1,783 | 1,155 | 1,035 | 263 | 240 | 176 | 5,708 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Reserves at December 31, 2012 | 20 | 81 | 668 | 730 | 1,499 | ||||||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 20 | 82 | 20 | 122 | |||||||||||||||||||||||
| undeveloped | 81 | 586 | 710 | 1,377 | |||||||||||||||||||||||
| Purchase of minerals in place | 1 | (5 | ) | 4 | |||||||||||||||||||||||
| Revisions of previous estimates | |||||||||||||||||||||||||||
| Improved recovery | |||||||||||||||||||||||||||
| Extensions and discoveries | |||||||||||||||||||||||||||
| Production | (2 | ) | (1 | ) | (13 | ) | (4 | ) | (20 | ) | |||||||||||||||||
| Sales of minerals in place | (652 | ) | (652 | ) | |||||||||||||||||||||||
| Reserves at December 31, 2013 | 19 | 75 | 7 | 726 | 827 | ||||||||||||||||||||||
| Reserves at December 31, 2013 | 499 | 557 | 1,802 | 1,230 | 1,035 | 270 | 966 | 176 | 6,535 | ||||||||||||||||||
| Developed | 408 | 343 | 1,022 | 701 | 566 | 93 | 171 | 123 | 3,427 | ||||||||||||||||||
| consolidated subsidiaries | 408 | 343 | 1,003 | 701 | 566 | 90 | 153 | 123 | 3,387 | ||||||||||||||||||
| equity-accounted entities | 19 | 3 | 18 | 40 | |||||||||||||||||||||||
| Undeveloped | 91 | 214 | 780 | 529 | 469 | 177 | 795 | 53 | 3,108 | ||||||||||||||||||
| consolidated subsidiaries | 91 | 214 | 780 | 454 | 469 | 173 | 87 | 53 | 2,321 | ||||||||||||||||||
| equity-accounted entities | 75 | 4 | 708 | 787 |
- 88 -
Contents
Eni Fact Book Supplemental oil and gas information
| Movements in net proved liquids reserves | (mmbbl) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2011 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Reserves at December 31, 2010 | 248 | 349 | 978 | 750 | 788 | 139 | 134 | 29 | 3,415 | ||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 183 | 207 | 656 | 533 | 251 | 39 | 62 | 20 | 1,951 | ||||||||||||||||||
| undeveloped | 65 | 142 | 322 | 217 | 537 | 100 | 72 | 9 | 1,464 | ||||||||||||||||||
| Purchase of minerals in place | |||||||||||||||||||||||||||
| Revisions of previous estimates | 34 | 58 | 10 | 14 | (112 | ) | (20 | ) | 1 | (15 | ) | ||||||||||||||||
| Improved recovery | 2 | 2 | 2 | 6 | |||||||||||||||||||||||
| Extensions and discoveries | 9 | 2 | 11 | 17 | 39 | ||||||||||||||||||||||
| Production | (23 | ) | (44 | ) | (75 | ) | (100 | ) | (23 | ) | (13 | ) | (20 | ) | (4 | ) | (302 | ) | |||||||||
| Sales of minerals in place | (2 | ) | (7 | ) | (9 | ) | |||||||||||||||||||||
| Reserves at December 31, 2011 | 259 | 372 | 917 | 670 | 653 | 106 | 132 | 25 | 3,134 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Reserves at December 31, 2010 | 19 | 6 | 44 | 139 | 208 | ||||||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 18 | 4 | 5 | 25 | 52 | ||||||||||||||||||||||
| undeveloped | 1 | 2 | 39 | 114 | 156 | ||||||||||||||||||||||
| Purchase of minerals in place | |||||||||||||||||||||||||||
| Revisions of previous estimates | 11 | 6 | 11 | 28 | |||||||||||||||||||||||
| Improved recovery | 1 | 1 | |||||||||||||||||||||||||
| Extensions and discoveries | 6 | 60 | 4 | 70 | |||||||||||||||||||||||
| Production | (2 | ) | (1 | ) | (4 | ) | (7 | ) | |||||||||||||||||||
| Sales of minerals in place | |||||||||||||||||||||||||||
| Reserves at December 31, 2011 | 17 | 22 | 110 | 151 | 300 | ||||||||||||||||||||||
| Reserves at December 31, 2011 | 259 | 372 | 934 | 692 | 653 | 216 | 283 | 25 | 3,434 | ||||||||||||||||||
| Developed | 184 | 195 | 638 | 487 | 215 | 34 | 117 | 25 | 1,895 | ||||||||||||||||||
| consolidated subsidiaries | 184 | 195 | 622 | 483 | 215 | 34 | 92 | 25 | 1,850 | ||||||||||||||||||
| equity-accounted entities | 16 | 4 | 25 | 45 | |||||||||||||||||||||||
| Undeveloped | 75 | 177 | 296 | 205 | 438 | 182 | 166 | 1,539 | |||||||||||||||||||
| consolidated subsidiaries | 75 | 177 | 295 | 187 | 438 | 72 | 40 | 1,284 | |||||||||||||||||||
| equity-accounted entities | 1 | 18 | 110 | 126 | 255 |
- 89 -
Contents
Eni Fact Book Supplemental oil and gas information
| Movements in net proved liquids reserves | (mmbbl) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2012 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Reserves at December 31, 2011 | 259 | 372 | 917 | 670 | 653 | 106 | 132 | 25 | 3,134 | ||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 184 | 195 | 622 | 483 | 215 | 34 | 92 | 25 | 1,850 | ||||||||||||||||||
| undeveloped | 75 | 177 | 295 | 187 | 438 | 72 | 40 | 1,284 | |||||||||||||||||||
| Purchase of minerals in place | |||||||||||||||||||||||||||
| Revisions of previous estimates | (9 | ) | 10 | 55 | 26 | 62 | (9 | ) | 40 | 6 | 181 | ||||||||||||||||
| Improved recovery | 1 | 20 | 7 | 28 | |||||||||||||||||||||||
| Extensions and discoveries | 3 | 10 | 65 | 8 | 86 | ||||||||||||||||||||||
| Production | (23 | ) | (35 | ) | (98 | ) | (90 | ) | (22 | ) | (15 | ) | (26 | ) | (7 | ) | (316 | ) | |||||||||
| Sales of minerals in place | (6 | ) | (23 | ) | (29 | ) | |||||||||||||||||||||
| Reserves at December 31, 2012 | 227 | 351 | 904 | 672 | 670 | 82 | 154 | 24 | 3,084 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Reserves at December 31, 2011 | 17 | 22 | 110 | 151 | 300 | ||||||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 16 | 4 | 25 | 45 | |||||||||||||||||||||||
| undeveloped | 1 | 18 | 110 | 126 | 255 | ||||||||||||||||||||||
| Purchase of minerals in place | |||||||||||||||||||||||||||
| Revisions of previous estimates | (1 | ) | 2 | 1 | |||||||||||||||||||||||
| Improved recovery | |||||||||||||||||||||||||||
| Extensions and discoveries | 1 | 3 | 4 | ||||||||||||||||||||||||
| Production | (1 | ) | (1 | ) | (1 | ) | (4 | ) | (7 | ) | |||||||||||||||||
| Sales of minerals in place | (4 | ) | (28 | ) | (32 | ) | |||||||||||||||||||||
| Reserves at December 31, 2012 | 17 | 16 | 114 | 119 | 266 | ||||||||||||||||||||||
| Reserves at December 31, 2012 | 227 | 351 | 921 | 688 | 670 | 196 | 273 | 24 | 3,350 | ||||||||||||||||||
| Developed | 165 | 180 | 601 | 456 | 203 | 49 | 128 | 24 | 1,806 | ||||||||||||||||||
| consolidated subsidiaries | 165 | 180 | 584 | 456 | 203 | 41 | 109 | 24 | 1,762 | ||||||||||||||||||
| equity-accounted entities | 17 | 8 | 19 | 44 | |||||||||||||||||||||||
| Undeveloped | 62 | 171 | 320 | 232 | 467 | 147 | 145 | 1,544 | |||||||||||||||||||
| consolidated subsidiaries | 62 | 171 | 320 | 216 | 467 | 41 | 45 | 1,322 | |||||||||||||||||||
| equity-accounted entities | 16 | 106 | 100 | 222 |
- 90 -
Contents
Eni Fact Book Supplemental oil and gas information
| Movements in net proved liquids reserves | (mmbbl) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2013 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Reserves at December 31, 2012 | 227 | 351 | 904 | 672 | 670 | 82 | 154 | 24 | 3,084 | ||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 165 | 180 | 584 | 456 | 203 | 41 | 109 | 24 | 1,762 | ||||||||||||||||||
| undeveloped | 62 | 171 | 320 | 216 | 467 | 41 | 45 | 1,322 | |||||||||||||||||||
| Purchase of minerals in place | 3 | 3 | |||||||||||||||||||||||||
| Revisions of previous estimates | 19 | 16 | 12 | 83 | 31 | 62 | 11 | 2 | 236 | ||||||||||||||||||
| Improved recovery | 5 | 5 | |||||||||||||||||||||||||
| Extensions and discoveries | 1 | 2 | 51 | 4 | 58 | ||||||||||||||||||||||
| Production | (26 | ) | (28 | ) | (91 | ) | (88 | ) | (22 | ) | (16 | ) | (22 | ) | (4 | ) | (297 | ) | |||||||||
| Sales of minerals in place | (10 | ) | (10 | ) | |||||||||||||||||||||||
| Reserves at December 31, 2013 | 220 | 330 | 830 | 723 | 679 | 128 | 147 | 22 | 3,079 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Reserves at December 31, 2012 | 17 | 16 | 114 | 119 | 266 | ||||||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 17 | 8 | 19 | 44 | |||||||||||||||||||||||
| undeveloped | 16 | 106 | 100 | 222 | |||||||||||||||||||||||
| Purchase of minerals in place | |||||||||||||||||||||||||||
| Revisions of previous estimates | (1 | ) | 1 | ||||||||||||||||||||||||
| Improved recovery | |||||||||||||||||||||||||||
| Extensions and discoveries | |||||||||||||||||||||||||||
| Production | (1 | ) | (2 | ) | (4 | ) | (7 | ) | |||||||||||||||||||
| Sales of minerals in place | (111 | ) | (111 | ) | |||||||||||||||||||||||
| Reserves at December 31, 2013 | 16 | 15 | 1 | 116 | 148 | ||||||||||||||||||||||
| Reserves at December 31, 2013 | 220 | 330 | 846 | 738 | 679 | 129 | 263 | 22 | 3,227 | ||||||||||||||||||
| Developed | 177 | 179 | 577 | 465 | 295 | 38 | 115 | 20 | 1,866 | ||||||||||||||||||
| consolidated subsidiaries | 177 | 179 | 561 | 465 | 295 | 38 | 96 | 20 | 1,831 | ||||||||||||||||||
| equity-accounted entities | 16 | 19 | 35 | ||||||||||||||||||||||||
| Undeveloped | 43 | 151 | 269 | 273 | 384 | 91 | 148 | 2 | 1,361 | ||||||||||||||||||
| consolidated subsidiaries | 43 | 151 | 269 | 258 | 384 | 90 | 51 | 2 | 1,248 | ||||||||||||||||||
| equity-accounted entities | 15 | 1 | 97 | 113 |
- 91 -
Contents
Eni Fact Book Supplemental oil and gas information
| Movements in net proved natural gas reserves | (bcf) |
| Italy (a) | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2011 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Reserves at December 31, 2010 | 2,644 | 1,401 | 6,207 | 2,127 | 1,874 | 871 | 530 | 544 | 16,198 | ||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 2,061 | 1,103 | 3,100 | 1,550 | 1,621 | 560 | 431 | 539 | 10,965 | ||||||||||||||||||
| undeveloped | 583 | 298 | 3,107 | 577 | 253 | 311 | 99 | 5 | 5,233 | ||||||||||||||||||
| Purchase of minerals in place | 9 | 9 | |||||||||||||||||||||||||
| Revisions of previous estimates | 80 | 199 | 436 | (11 | ) | (142 | ) | (38 | ) | 51 | 96 | 671 | |||||||||||||||
| Improved recovery | 3 | 3 | |||||||||||||||||||||||||
| Extensions and discoveries | 4 | 18 | 9 | 18 | 131 | 180 | |||||||||||||||||||||
| Production | (246 | ) | (196 | ) | (462 | ) | (185 | ) | (84 | ) | (148 | ) | (122 | ) | (36 | ) | (1,479 | ) | |||||||||
| Sales of minerals in place | |||||||||||||||||||||||||||
| Reserves at December 31, 2011 | 2,491 | 1,425 | 6,190 | 1,949 | 1,648 | 685 | 590 | 604 | 15,582 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Reserves at December 31, 2010 | 24 | 118 | 1,520 | 22 | 1,684 | ||||||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 22 | 4 | 214 | 6 | 246 | ||||||||||||||||||||||
| undeveloped | 2 | 114 | 1,306 | 16 | 1,438 | ||||||||||||||||||||||
| Purchase of minerals in place | 2 | 2 | |||||||||||||||||||||||||
| Revisions of previous estimates | (2 | ) | 147 | 372 | 11 | 528 | |||||||||||||||||||||
| Improved recovery | |||||||||||||||||||||||||||
| Extensions and discoveries | 74 | 1,150 | 1,274 | 2,498 | |||||||||||||||||||||||
| Production | (2 | ) | (1 | ) | (9 | ) | (12 | ) | |||||||||||||||||||
| Sales of minerals in place | |||||||||||||||||||||||||||
| Reserves at December 31, 2011 | 2 | 20 | 338 | 3,033 | 1,307 | 4,700 | |||||||||||||||||||||
| Reserves at December 31, 2011 | 2,491 | 1,427 | 6,210 | 2,287 | 1,648 | 3,718 | 1,897 | 604 | 20,282 | ||||||||||||||||||
| Developed | 1,977 | 995 | 3,087 | 1,441 | 1,480 | 552 | 393 | 491 | 10,416 | ||||||||||||||||||
| consolidated subsidiaries | 1,977 | 995 | 3,070 | 1,437 | 1,480 | 528 | 385 | 491 | 10,363 | ||||||||||||||||||
| equity-accounted entities | 17 | 4 | 24 | 8 | 53 | ||||||||||||||||||||||
| Undeveloped | 514 | 432 | 3,123 | 846 | 168 | 3,166 | 1,504 | 113 | 9,866 | ||||||||||||||||||
| consolidated subsidiaries | 514 | 430 | 3,120 | 512 | 168 | 157 | 205 | 113 | 5,219 | ||||||||||||||||||
| equity-accounted entities | 2 | 3 | 334 | 3,009 | 1,299 | 4,647 |
(a) Including approximately 767 billion cubic feet of natural gas held in storage at December 31, 2010 and 2011. |
- 92 -
Contents
Eni Fact Book Supplemental oil and gas information
| Movements in net proved natural gas reserves | (bcf) |
| Italy (a) | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2012 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Reserves at December 31, 2011 | 2,491 | 1,425 | 6,190 | 1,949 | 1,648 | 685 | 590 | 604 | 15,582 | ||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 1,977 | 995 | 3,070 | 1,437 | 1,480 | 528 | 385 | 491 | 10,363 | ||||||||||||||||||
| undeveloped | 514 | 430 | 3,120 | 512 | 168 | 157 | 205 | 113 | 5,219 | ||||||||||||||||||
| Purchase of minerals in place | |||||||||||||||||||||||||||
| Revisions of previous estimates | 154 | 45 | 284 | 141 | 18 | (41 | ) | 5 | 606 | ||||||||||||||||||
| Improved recovery | |||||||||||||||||||||||||||
| Extensions and discoveries | 24 | 15 | 1 | 113 | 469 | 2 | 4 | 628 | |||||||||||||||||||
| Production | (254 | ) | (168 | ) | (633 | ) | (196 | ) | (81 | ) | (143 | ) | (104 | ) | (37 | ) | (1,616 | ) | |||||||||
| Sales of minerals in place | (782 | ) | (89 | ) | (139 | ) | (1,010 | ) | |||||||||||||||||||
| Reserves at December 31, 2012 | 1,633 | 1,317 | 5,558 | 2,061 | 2,038 | 562 | 449 | 572 | 14,190 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Reserves at December 31, 2011 | 2 | 20 | 338 | 3,033 | 1,307 | 4,700 | |||||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 17 | 4 | 24 | 8 | 53 | ||||||||||||||||||||||
| undeveloped | 2 | 3 | 334 | 3,009 | 1,299 | 4,647 | |||||||||||||||||||||
| Purchase of minerals in place | |||||||||||||||||||||||||||
| Revisions of previous estimates | (2 | ) | (2 | ) | 3 | 1 | 1,340 | 1,340 | |||||||||||||||||||
| Improved recovery | |||||||||||||||||||||||||||
| Extensions and discoveries | 17 | 38 | 739 | 794 | |||||||||||||||||||||||
| Production | (2 | ) | (2 | ) | (29 | ) | (33 | ) | |||||||||||||||||||
| Sales of minerals in place | (3 | ) | (31 | ) | (34 | ) | |||||||||||||||||||||
| Reserves at December 31, 2012 | 16 | 353 | 3,043 | 3,355 | 6,767 | ||||||||||||||||||||||
| Reserves at December 31, 2012 | 1,633 | 1,317 | 5,574 | 2,414 | 2,038 | 3,605 | 3,804 | 572 | 20,957 | ||||||||||||||||||
| Developed | 1,325 | 925 | 2,736 | 1,429 | 1,401 | 774 | 340 | 459 | 9,389 | ||||||||||||||||||
| consolidated subsidiaries | 1,325 | 925 | 2,720 | 1,429 | 1,401 | 372 | 334 | 459 | 8,965 | ||||||||||||||||||
| equity-accounted entities | 16 | 402 | 6 | 424 | |||||||||||||||||||||||
| Undeveloped | 308 | 392 | 2,838 | 985 | 637 | 2,831 | 3,464 | 113 | 11,568 | ||||||||||||||||||
| consolidated subsidiaries | 308 | 392 | 2,838 | 632 | 637 | 190 | 115 | 113 | 5,225 | ||||||||||||||||||
| equity-accounted entities | 353 | 2,641 | 3,349 | 6,343 |
(a) Including approximately 767 billion cubic feet of natural gas held in storage at December 31, 2011. |
- 93 -
Contents
Eni Fact Book Supplemental oil and gas information
| Movements in net proved natural gas reserves | (bcf) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2013 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Reserves at December 31, 2012 | 1,633 | 1,317 | 5,558 | 2,061 | 2,038 | 562 | 449 | 572 | 14,190 | ||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 1,325 | 925 | 2,720 | 1,429 | 1,401 | 372 | 334 | 459 | 8,965 | ||||||||||||||||||
| undeveloped | 308 | 392 | 2,838 | 632 | 637 | 190 | 115 | 113 | 5,225 | ||||||||||||||||||
| Purchase of minerals in place | 5 | 5 | |||||||||||||||||||||||||
| Revisions of previous estimates | 105 | 103 | 253 | 475 | (3 | ) | 104 | 142 | 316 | 1,495 | |||||||||||||||||
| Improved recovery | |||||||||||||||||||||||||||
| Extensions and discoveries | 24 | 1 | 24 | 14 | 208 | 7 | 278 | ||||||||||||||||||||
| Production | (230 | ) | (157 | ) | (609 | ) | (176 | ) | (78 | ) | (130 | ) | (89 | ) | (40 | ) | (1,509 | ) | |||||||||
| Sales of minerals in place | (17 | ) | (17 | ) | |||||||||||||||||||||||
| Reserves at December 31, 2013 | 1,532 | 1,247 | 5,231 | 2,374 | 1,957 | 744 | 509 | 848 | 14,442 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Reserves at December 31, 2012 | 16 | 353 | 3,043 | 3,355 | 6,767 | ||||||||||||||||||||||
| of which: | |||||||||||||||||||||||||||
| developed | 16 | 402 | 6 | 424 | |||||||||||||||||||||||
| undeveloped | 353 | 2,641 | 3,349 | 6,343 | |||||||||||||||||||||||
| Purchase of minerals in place | |||||||||||||||||||||||||||
| Revisions of previous estimates | 1 | (18 | ) | 16 | (2 | ) | (3 | ) | |||||||||||||||||||
| Improved recovery | |||||||||||||||||||||||||||
| Extensions and discoveries | |||||||||||||||||||||||||||
| Production | (2 | ) | (5 | ) | (60 | ) | (67 | ) | |||||||||||||||||||
| Sales of minerals in place | (2,971 | ) | (2,971 | ) | |||||||||||||||||||||||
| Reserves at December 31, 2013 | 15 | 330 | 28 | 3,353 | 3,726 | ||||||||||||||||||||||
| Reserves at December 31, 2013 | 1,532 | 1,247 | 5,246 | 2,704 | 1,957 | 772 | 3,862 | 848 | 18,168 | ||||||||||||||||||
| Developed | 1,266 | 904 | 2,447 | 1,295 | 1,488 | 300 | 315 | 561 | 8,576 | ||||||||||||||||||
| consolidated subsidiaries | 1,266 | 904 | 2,432 | 1,295 | 1,488 | 286 | 310 | 561 | 8,542 | ||||||||||||||||||
| equity-accounted entities | 15 | 14 | 5 | 34 | |||||||||||||||||||||||
| Undeveloped | 266 | 343 | 2,799 | 1,409 | 469 | 472 | 3,547 | 287 | 9,592 | ||||||||||||||||||
| consolidated subsidiaries | 266 | 343 | 2,799 | 1,079 | 469 | 458 | 199 | 287 | 5,900 | ||||||||||||||||||
| equity-accounted entities | 330 | 14 | 3,348 | 3,692 |
- 94 -
Contents
Eni Fact Book Supplemental oil and gas information
| Results of operations from oil and gas producing activities (a) | (euro million) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2011 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||
| - sales to consolidated entities | 3,583 | 3,695 | 1,956 | 5,945 | 411 | 178 | 1,634 | 93 | 17,495 | ||||||||||||||||||
| - sales to third parties | 514 | 5,090 | 1,937 | 1,268 | 1,233 | 132 | 344 | 10,518 | |||||||||||||||||||
| Total revenues | 3,583 | 4,209 | 7,046 | 7,882 | 1,679 | 1,411 | 1,766 | 437 | 28,013 | ||||||||||||||||||
| Operations costs | (284 | ) | (566 | ) | (483 | ) | (830 | ) | (171 | ) | (183 | ) | (364 | ) | (88 | ) | (2,969 | ) | |||||||||
| Production taxes | (245 | ) | (165 | ) | (853 | ) | (37 | ) | (1,300 | ) | |||||||||||||||||
| Exploration expenses | (38 | ) | (113 | ) | (128 | ) | (509 | ) | (6 | ) | (177 | ) | (136 | ) | (58 | ) | (1,165 | ) | |||||||||
| D.D. & A. and provision for abandonment (b) | (606 | ) | (704 | ) | (843 | ) | (1,435 | ) | (112 | ) | (486 | ) | (901 | ) | (103 | ) | (5,190 | ) | |||||||||
| Other income (expenses) | (562 | ) | 142 | (508 | ) | (314 | ) | (160 | ) | (151 | ) | 125 | 8 | (1,420 | ) | ||||||||||||
| Pretax income from producing activities | 1,848 | 2,968 | 4,919 | 3,941 | 1,230 | 377 | 490 | 196 | 15,969 | ||||||||||||||||||
| Income taxes | (761 | ) | (2,043 | ) | (3,013 | ) | (2,680 | ) | (413 | ) | (157 | ) | (184 | ) | (120 | ) | (9,371 | ) | |||||||||
| Results of operations from E&P activities of consolidated subsidiaries (c) | 1,087 | 925 | 1,906 | 1,261 | 817 | 220 | 306 | 76 | 6,598 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||
| - sales to consolidated entities | |||||||||||||||||||||||||||
| - sales to third parties | 2 | 19 | 93 | 89 | 262 | 465 | |||||||||||||||||||||
| Total revenues | 2 | 19 | 93 | 89 | 262 | 465 | |||||||||||||||||||||
| Operations costs | (11 | ) | (10 | ) | (9 | ) | (17 | ) | (47 | ) | |||||||||||||||||
| Production taxes | (1 | ) | (4 | ) | (113 | ) | (118 | ) | |||||||||||||||||||
| Exploration expenses | (6 | ) | (5 | ) | (8 | ) | (9 | ) | (28 | ) | |||||||||||||||||
| D.D. & A. and provision for abandonment | (1 | ) | (24 | ) | (23 | ) | (21 | ) | (69 | ) | |||||||||||||||||
| Other income (expenses) | (4 | ) | 6 | 11 | (20 | ) | (51 | ) | (58 | ) | |||||||||||||||||
| Pretax income from producing activities | (9 | ) | 9 | 65 | 29 | 51 | 145 | ||||||||||||||||||||
| Income taxes | (4 | ) | (35 | ) | (32 | ) | (4 | ) | (75 | ) | |||||||||||||||||
| Results of operations from E&P activities of equity-accounted entities (c) | (9 | ) | 5 | 30 | (3 | ) | 47 | 70 |
(a) Results of operations from oil and gas producing activities represent only those revenues and expenses directly associated with such activities, including operating overheads. These amounts do not include any allocation of interest expense or general corporate overhead and, therefore, are not necessarily indicative of the contributions to consolidated net earnings of Eni. Related income taxes are computed by applying the local income tax rates to the pre-tax income from producing activities. Eni is a party to certain Production Sharing Agreements (PSAs), whereby a portion of Eni’s share of oil and gas production is withheld and sold by its joint venture partners which are state owned entities, with proceeds being remitted to the state in satisfaction of Eni’s PSA related tax liabilities. Revenue and income taxes include such taxes owed by Eni but paid by state-owned entities out of Eni’s share of oil and gas production. (b) Includes asset impairments amounting to euro 189 million. (c) The "Successful Effort Method" application would have led to an increase of result of operations of euro 118 million for the consolidated subsidiaries and an increase of euro 20 million for equity-accounted entities. |
- 95 -
Contents
Eni Fact Book Supplemental oil and gas information
| Results of operations from oil and gas producing activities | (euro million) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2012 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||
| - sales to consolidated entities | 3,712 | 3,177 | 2,338 | 6,040 | 459 | 425 | 1,614 | 425 | 18,190 | ||||||||||||||||||
| - sales to third parties | 50 | 715 | 9,129 | 2,243 | 1,368 | 1,387 | 106 | 333 | 15,331 | ||||||||||||||||||
| Total revenues | 3,762 | 3,892 | 11,467 | 8,283 | 1,827 | 1,812 | 1,720 | 758 | 33,521 | ||||||||||||||||||
| Operations costs | (302 | ) | (655 | ) | (606 | ) | (913 | ) | (188 | ) | (209 | ) | (361 | ) | (134 | ) | (3,368 | ) | |||||||||
| Production taxes | (307 | ) | (390 | ) | (818 | ) | (43 | ) | (1,558 | ) | |||||||||||||||||
| Exploration expenses | (32 | ) | (154 | ) | (153 | ) | (993 | ) | (3 | ) | (230 | ) | (147 | ) | (123 | ) | (1,835 | ) | |||||||||
| D.D. & A. and provision for abandonment (a) | (779 | ) | (683 | ) | (1,137 | ) | (1,750 | ) | (120 | ) | (720 | ) | (1,256 | ) | (167 | ) | (6,612 | ) | |||||||||
| Other income (expenses) | (202 | ) | (122 | ) | (934 | ) | (435 | ) | 206 | (149 | ) | 74 | (42 | ) | (1,600 | ) | |||||||||||
| Pretax income from producing activities | 2,144 | 2,278 | 8,247 | 3,374 | 1,722 | 461 | 30 | 292 | 18,529 | ||||||||||||||||||
| Income taxes | (919 | ) | (1,524 | ) | (5,194 | ) | (2,508 | ) | (736 | ) | (176 | ) | (14 | ) | (164 | ) | (11,235 | ) | |||||||||
| Results of operations from E&P activities of consolidated subsidiaries (b) | 1,222 | 756 | 3,050 | 854 | 986 | 283 | 16 | 128 | 7,295 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||
| - sales to consolidated entities | |||||||||||||||||||||||||||
| - sales to third parties | 2 | 20 | 44 | 144 | 300 | 510 | |||||||||||||||||||||
| Total revenues | 2 | 20 | 44 | 144 | 300 | 510 | |||||||||||||||||||||
| Operations costs | (10 | ) | (5 | ) | (14 | ) | (20 | ) | (49 | ) | |||||||||||||||||
| Production taxes | (1 | ) | (3 | ) | (4 | ) | (128 | ) | (136 | ) | |||||||||||||||||
| Exploration expenses | (5 | ) | (2 | ) | (11 | ) | (4 | ) | (22 | ) | |||||||||||||||||
| D.D. & A. and provision for abandonment | (50 | ) | (2 | ) | (13 | ) | (41 | ) | (35 | ) | (141 | ) | |||||||||||||||
| Other income (expenses) | (7 | ) | 2 | (48 | ) | (6 | ) | (55 | ) | (114 | ) | ||||||||||||||||
| Pretax income from producing activities | (61 | ) | 5 | (33 | ) | 75 | 62 | 48 | |||||||||||||||||||
| Income taxes | (3 | ) | 4 | (36 | ) | (38 | ) | (73 | ) | ||||||||||||||||||
| Results of operations from E&P activities of equity-accounted entities (b) | (61 | ) | 2 | (29 | ) | 39 | 24 | (25 | ) |
(a) Includes asset impairments amounting to euro 547 million. (b) The "Successful Effort Method" application would have led to an increase of result of operations of euro 189 million for the consolidated subsidiaries and a decrease of euro 2 million for equity-accounted entities. |
- 96 -
Contents
Eni Fact Book Supplemental oil and gas information
| Results of operations from oil and gas producing activities | (euro million) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2013 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||
| - sales to consolidated entities | 3,784 | 2,468 | 2,341 | 5,264 | 396 | 870 | 1,537 | 146 | 16,806 | ||||||||||||||||||
| - sales to third parties | 704 | 7,723 | 1,855 | 1,175 | 864 | 93 | 338 | 12,752 | |||||||||||||||||||
| Total revenues | 3,784 | 3,172 | 10,064 | 7,119 | 1,571 | 1,734 | 1,630 | 484 | 29,558 | ||||||||||||||||||
| Operations costs | (391 | ) | (717 | ) | (649 | ) | (932 | ) | (192 | ) | (224 | ) | (342 | ) | (119 | ) | (3,566 | ) | |||||||||
| Production taxes | (326 | ) | (317 | ) | (710 | ) | (38 | ) | (25 | ) | (1,416 | ) | |||||||||||||||
| Exploration expenses | (32 | ) | (288 | ) | (95 | ) | (869 | ) | (1 | ) | (205 | ) | (136 | ) | (110 | ) | (1,736 | ) | |||||||||
| D.D. & A. and provision for abandonment (a) | (909 | ) | (573 | ) | (1,192 | ) | (1,882 | ) | (111 | ) | (524 | ) | (848 | ) | 43 | (5,996 | ) | ||||||||||
| Other income (expenses) | (271 | ) | 161 | (1,009 | ) | (519 | ) | (105 | ) | (140 | ) | 20 | (11 | ) | (1,874 | ) | |||||||||||
| Pretax income from producing activities | 1,855 | 1,755 | 6,802 | 2,207 | 1,162 | 603 | 324 | 262 | 14,970 | ||||||||||||||||||
| Income taxes | (873 | ) | (1,006 | ) | (4,281 | ) | (1,702 | ) | (396 | ) | (178 | ) | (117 | ) | (149 | ) | (8,702 | ) | |||||||||
| Results of operations from E&P activities of consolidated subsidiaries (b) | 982 | 749 | 2,521 | 505 | 766 | 425 | 207 | 113 | 6,268 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||
| - sales to consolidated entities | |||||||||||||||||||||||||||
| - sales to third parties | 20 | 26 | 199 | 243 | 488 | ||||||||||||||||||||||
| Total revenues | 20 | 26 | 199 | 243 | 488 | ||||||||||||||||||||||
| Operations costs | (11 | ) | (44 | ) | (18 | ) | (23 | ) | (96 | ) | |||||||||||||||||
| Production taxes | (4 | ) | (14 | ) | (113 | ) | (131 | ) | |||||||||||||||||||
| Exploration expenses | (8 | ) | (3 | ) | (25 | ) | (1 | ) | (37 | ) | |||||||||||||||||
| D.D. & A. and provision for abandonment | (1 | ) | (1 | ) | (65 | ) | (40 | ) | (107 | ) | |||||||||||||||||
| Other income (expenses) | (4 | ) | 5 | (12 | ) | (13 | ) | (38 | ) | (62 | ) | ||||||||||||||||
| Pretax income from producing activities | (13 | ) | 6 | (30 | ) | 64 | 28 | 55 | |||||||||||||||||||
| Income taxes | (4 | ) | (10 | ) | (35 | ) | 30 | (19 | ) | ||||||||||||||||||
| Results of operations from E&P activities of equity-accounted entities (b) | (13 | ) | 2 | (40 | ) | 29 | 58 | 36 |
(a) Includes asset impairments amounting to euro 15 million in 2013. (b) The "Successful Effort Method" application would have led to a decrease of result of operations of euro 20 million in 2013 for the consolidated subsidiaries and an increase of euro 6 million in 2013 for equity-accounted entities. |
- 97 -
Contents
Eni Fact Book Supplemental oil and gas information
| Capitalized cost (a) | (euro million) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2012 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Proved mineral interests | 12,579 | 12,428 | 16,240 | 20,875 | 2,451 | 6,477 | 10,018 | 1,894 | 82,962 | ||||||||||||||||||
| Unproved mineral interests | 31 | 324 | 411 | 3,047 | 39 | 1,467 | 1,249 | 200 | 6,768 | ||||||||||||||||||
| Support equipment and facilities | 267 | 39 | 1,421 | 961 | 75 | 78 | 59 | 12 | 2,912 | ||||||||||||||||||
| Incomplete wells and other | 732 | 3,347 | 3,181 | 974 | 5,746 | 358 | 876 | 1 | 15,215 | ||||||||||||||||||
| Gross Capitalized Costs | 13,609 | 16,138 | 21,253 | 25,857 | 8,311 | 8,380 | 12,202 | 2,107 | 107,857 | ||||||||||||||||||
| Accumulated depreciation, depletion and amortization | (9,364 | ) | (9,346 | ) | (10,671 | ) | (14,225 | ) | (928 | ) | (6,002 | ) | (7,879 | ) | (832 | ) | (59,247 | ) | |||||||||
| Net Capitalized Costs consolidated subsidiaries (b) (c) | 4,245 | 6,792 | 10,582 | 11,632 | 7,383 | 2,378 | 4,323 | 1,275 | 48,610 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Proved mineral interests | 1 | 83 | 52 | 964 | 322 | 1,422 | |||||||||||||||||||||
| Unproved mineral interests | 54 | 279 | 333 | ||||||||||||||||||||||||
| Support equipment and facilities | 7 | 6 | 3 | 16 | |||||||||||||||||||||||
| Incomplete wells and other | 22 | 1 | 1,052 | 114 | 200 | 1,389 | |||||||||||||||||||||
| Gross Capitalized Costs | 77 | 91 | 1,104 | 1,363 | 525 | 3,160 | |||||||||||||||||||||
| Accumulated depreciation, depletion and amortization | (55 | ) | (72 | ) | (421 | ) | (111 | ) | (659 | ) | |||||||||||||||||
| Net Capitalized Costs equity-accounted entities (b) (c) | 22 | 19 | 1,104 | 942 | 414 | 2,501 | |||||||||||||||||||||
| 2013 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Proved mineral interests | 13,516 | 12,497 | 18,237 | 21,854 | 2,351 | 6,604 | 10,652 | 1,662 | 87,373 | ||||||||||||||||||
| Unproved mineral interests | 31 | 385 | 428 | 2,835 | 37 | 1,441 | 1,419 | 190 | 6,766 | ||||||||||||||||||
| Support equipment and facilities | 269 | 37 | 1,370 | 992 | 78 | 90 | 57 | 12 | 2,905 | ||||||||||||||||||
| Incomplete wells and other | 799 | 2,803 | 1,105 | 1,851 | 6,069 | 634 | 669 | 24 | 13,954 | ||||||||||||||||||
| Gross Capitalized Costs | 14,615 | 15,722 | 21,140 | 27,532 | 8,535 | 8,769 | 12,797 | 1,888 | 110,998 | ||||||||||||||||||
| Accumulated depreciation, depletion and amortization | (10,269 | ) | (8,581 | ) | (11,370 | ) | (15,562 | ) | (1,000 | ) | (6,269 | ) | (8,406 | ) | (723 | ) | (62,180 | ) | |||||||||
| Net Capitalized Costs consolidated subsidiaries (b) (c) | 4,346 | 7,141 | 9,770 | 11,970 | 7,535 | 2,500 | 4,391 | 1,165 | 48,818 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Proved mineral interests | 2 | 77 | 34 | 438 | 429 | 980 | |||||||||||||||||||||
| Unproved mineral interests | 52 | 74 | 126 | ||||||||||||||||||||||||
| Support equipment and facilities | 7 | 1 | 3 | 11 | |||||||||||||||||||||||
| Incomplete wells and other | 20 | 4 | 1,059 | 378 | 1,461 | ||||||||||||||||||||||
| Gross Capitalized Costs | 74 | 88 | 1,093 | 513 | 810 | 2,578 | |||||||||||||||||||||
| Accumulated depreciation, depletion and amortization | (56 | ) | (67 | ) | (405 | ) | (145 | ) | (673 | ) | |||||||||||||||||
| Net Capitalized Costs equity-accounted entities (b) (c) | 18 | 21 | 1,093 | 108 | 665 | 1,905 |
(a) Capitalized costs represent the total expenditure for proved and unproved mineral interests and related support equipment and facilities utilized in oil and gas exploration and production activities, together with related accumulated depreciation, depletion and amortization. (b) The amounts include net capitalized financial charges totaling euro 672 million in 2012 and euro 715 million in 2013 for the consolidated subsidiaries and euro 24 million in 2012 and euro 12 million in 2013 for equity-accounted entities. (c) The amounts do not include costs associated with exploration activities which are capitalized in order to reflect their investment nature and amortized in full when incurred. The "Successful Effort Method" application would have led to an increase in net capitalized costs of euro 4,071 million in 2012 and euro 3,703 million in 2013 for the consolidated subsidiaries and of euro 74 million in 2012 and euro 76 million in 2013 for equity-accounted entities. |
- 98 -
Contents
Eni Fact Book Supplemental oil and gas information
| Cost incurred (a) | (euro million) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| 2011 | ||||||||||||||||||
| Consolidated subsidiaries | ||||||||||||||||||
| Proved property acquisitions | ||||||||||||||||||
| Unproved property acquisitions | 57 | 697 | 754 | |||||||||||||||
| Exploration | 38 | 100 | 128 | 482 | 6 | 156 | 60 | 240 | 1,210 | |||||||||
| Development (b) | 815 | 1,921 | 1,487 | 1,698 | 935 | 385 | 971 | 70 | 8,282 | |||||||||
| Total costs incurred consolidated subsidiaries | 853 | 2,021 | 1,672 | 2,877 | 941 | 541 | 1,031 | 310 | 10,246 | |||||||||
| Equity-accounted entities | ||||||||||||||||||
| Proved property acquisitions | ||||||||||||||||||
| Unproved property acquisitions | ||||||||||||||||||
| Exploration | 5 | 5 | 8 | 9 | 27 | |||||||||||||
| Development (c) | 2 | 3 | 659 | 68 | 154 | 886 | ||||||||||||
| Total costs incurred equity-accounted entities | 7 | 3 | 664 | 76 | 163 | 913 | ||||||||||||
| 2012 | ||||||||||||||||||
| Consolidated subsidiaries | ||||||||||||||||||
| Proved property acquisitions | 14 | 27 | 2 | 43 | ||||||||||||||
| Unproved property acquisitions | ||||||||||||||||||
| Exploration | 32 | 151 | 153 | 1,142 | 3 | 193 | 80 | 96 | 1,850 | |||||||||
| Development (b) | 1,045 | 2,485 | 1,441 | 2,246 | 762 | 702 | 1,071 | 16 | 9,768 | |||||||||
| Total costs incurred consolidated subsidiaries | 1,077 | 2,636 | 1,608 | 3,415 | 765 | 895 | 1,153 | 112 | 11,661 | |||||||||
| Equity-accounted entities | ||||||||||||||||||
| Proved property acquisitions | ||||||||||||||||||
| Unproved property acquisitions | ||||||||||||||||||
| Exploration | 13 | 2 | 11 | 4 | 30 | |||||||||||||
| Development (c) | 19 | 7 | 117 | 188 | 154 | 485 | ||||||||||||
| Total costs incurred equity-accounted entities | 32 | 9 | 128 | 192 | 154 | 515 | ||||||||||||
| 2013 | ||||||||||||||||||
| Consolidated subsidiaries | ||||||||||||||||||
| Proved property acquisitions | 64 | 64 | ||||||||||||||||
| Unproved property acquisitions | 45 | 45 | ||||||||||||||||
| Exploration | 32 | 357 | 95 | 757 | 1 | 233 | 110 | 84 | 1,669 | |||||||||
| Development (b) | 697 | 1,855 | 765 | 2,617 | 600 | 719 | 1,141 | 57 | 8,451 | |||||||||
| Total costs incurred consolidated subsidiaries | 729 | 2,212 | 969 | 3,374 | 601 | 952 | 1,251 | 141 | 10,229 | |||||||||
| Equity-accounted entities | ||||||||||||||||||
| Proved property acquisitions | ||||||||||||||||||
| Unproved property acquisitions | ||||||||||||||||||
| Exploration | 5 | 3 | 81 | 1 | 90 | |||||||||||||
| Development (c) | 1 | 5 | 39 | 353 | 318 | 716 | ||||||||||||
| Total costs incurred equity-accounted entities | 6 | 8 | 39 | 434 | 319 | 806 |
(a) Cost incurred represent amounts both capitalized and expenses in connection with oil and gas producing activities. (b) Includes the abandonment costs of the assets for euro 918 million in 2011, for euro 1,381 million in 2012 and negative for euro 191 million in 2013. (c) Includes the abandonment costs of the assets for euro 15 million in 2011, euro 63 million in 2012 and euro 10 million in 2013. |
- 99 -
Contents
Eni Fact Book Supplemental oil and gas information
Standardized measure of discounted future net cash flows
| Estimated future cash
inflows represent the revenues that would be received
from production and are determined by applying yearend
the average prices during the years ended. Future price changes are considered only to the extent provided by contractual arrangements. Estimated future development and production costs are determined by estimating the expenditure to be incurred in developing and producing the proved reserves at the end of the year. Neither the effects of price and cost escalations nor expected future changes in technology and operating practices have been considered. The standardized measure is calculated as the excess of future cash inflows from proved reserves less future costs of producing and developing the reserves, future income taxes and a yearly 10% discount factor. Future production costs include the estimated expenditures related to the production of proved reserves plus any production taxes without consideration of future inflation. Future |
development costs include the estimated costs of drilling development wells and installation of production facilities, plus the net costs associated with dismantlement and abandonment of wells and facilities, under the assumption that year-end costs continue without considering future inflation. Future income taxes were calculated in accordance with the tax laws of the Countries in which Eni operates. The standardized measure of discounted future net cash flows, related to the preceding proved oil and gas reserves, is calculated in accordance with the requirements of FASB Extractive Activities - oil&gas (Topic 932). The standardized measure does not purport to reflect realizable values or fair market value of Eni’s proved reserves. An estimate of fair value would also take into account, among other things, hydrocarbon resources other than proved reserves, anticipated changes in future prices and costs and a discount factor representative of the risks inherent in the oil and gas exploration and production activity. |
- 100 -
Contents
Eni Fact Book Supplemental oil and gas information
| Standardized measure of discounted future net cash flows | (euro million) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| December 31, 2011 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Future cash inflows | 38,200 | 37,974 | 109,825 | 59,263 | 50,443 | 10,403 | 11,980 | 5,185 | 323,273 | ||||||||||||||||||
| Future production costs | (5,740 | ) | (7,666 | ) | (17,627 | ) | (15,191 | ) | (7,845 | ) | (3,852 | ) | (2,687 | ) | (813 | ) | (61,421 | ) | |||||||||
| Future development and abandonment costs | (4,712 | ) | (7,059 | ) | (9,639 | ) | (5,734 | ) | (3,705 | ) | (2,842 | ) | (1,836 | ) | (224 | ) | (35,751 | ) | |||||||||
| Future net inflow before income tax | 27,748 | 23,249 | 82,559 | 38,338 | 38,893 | 3,709 | 7,457 | 4,148 | 226,101 | ||||||||||||||||||
| Future income tax | (9,000 | ) | (15,912 | ) | (46,676 | ) | (23,075 | ) | (9,866 | ) | (1,124 | ) | (2,474 | ) | (1,254 | ) | (109,381 | ) | |||||||||
| Future net cash flows | 18,748 | 7,337 | 35,883 | 15,263 | 29,027 | 2,585 | 4,983 | 2,894 | 116,720 | ||||||||||||||||||
| 10% discount factor | (9,692 | ) | (2,572 | ) | (16,191 | ) | (4,833 | ) | (17,599 | ) | (559 | ) | (1,914 | ) | (1,122 | ) | (54,482 | ) | |||||||||
| Standardized measure of discounted future net cash flows |
9,056 | 4,765 | 19,692 | 10,430 | 11,428 | 2,026 | 3,069 | 1,772 | 62,238 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Future cash inflows | 21 | 649 | 1,866 | 6,141 | 15,067 | 23,744 | |||||||||||||||||||||
| Future production costs | (5 | ) | (259 | ) | (471 | ) | (1,540 | ) | (4,598 | ) | (6,873 | ) | |||||||||||||||
| Future development and abandonment costs | (2 | ) | (36 | ) | (147 | ) | (1,247 | ) | (1,754 | ) | (3,186 | ) | |||||||||||||||
| Future net inflow before income tax | 14 | 354 | 1,248 | 3,354 | 8,715 | 13,685 | |||||||||||||||||||||
| Future income tax | (3 | ) | (3 | ) | (189 | ) | (824 | ) | (5,368 | ) | (6,387 | ) | |||||||||||||||
| Future net cash flows | 11 | 351 | 1,059 | 2,530 | 3,347 | 7,298 | |||||||||||||||||||||
| 10% discount factor | (183 | ) | (475 | ) | (1,825 | ) | (2,155 | ) | (4,638 | ) | |||||||||||||||||
| Standardized measure of discounted future net cash flows |
11 | 168 | 584 | 705 | 1,192 | 2,660 | |||||||||||||||||||||
| Total | 9,056 | 4,776 | 19,860 | 11,014 | 11,428 | 2,731 | 4,261 | 1,772 | 64,898 |
| December 31, 2012 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Future cash inflows | 30,308 | 38,912 | 108,343 | 56,978 | 53,504 | 7,881 | 11,008 | 4,957 | 311,891 | ||||||||||||||||||
| Future production costs | (5,900 | ) | (8,190 | ) | (18,555 | ) | (14,844 | ) | (9,561 | ) | (2,854 | ) | (2,520 | ) | (921 | ) | (63,345 | ) | |||||||||
| Future development and abandonment costs | (3,652 | ) | (7,511 | ) | (8,412 | ) | (6,873 | ) | (3,802 | ) | (1,974 | ) | (1,502 | ) | (197 | ) | (33,923 | ) | |||||||||
| Future net inflow before income tax | 20,756 | 23,211 | 81,376 | 35,261 | 40,141 | 3,053 | 6,986 | 3,839 | 214,623 | ||||||||||||||||||
| Future income tax | (6,911 | ) | (15,063 | ) | (44,256 | ) | (21,348 | ) | (10,293 | ) | (903 | ) | (2,906 | ) | (1,181 | ) | (102,861 | ) | |||||||||
| Future net cash flows | 13,845 | 8,148 | 37,120 | 13,913 | 29,848 | 2,150 | 4,080 | 2,658 | 111,762 | ||||||||||||||||||
| 10% discount factor | (5,519 | ) | (2,630 | ) | (16,539 | ) | (4,976 | ) | (17,943 | ) | (496 | ) | (1,337 | ) | (1,030 | ) | (50,470 | ) | |||||||||
| Standardized measure of discounted future net cash flows |
8,326 | 5,518 | 20,581 | 8,937 | 11,905 | 1,654 | 2,743 | 1,628 | 61,292 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Future cash inflows | 1 | 658 | 3,594 | 6,689 | 18,132 | 29,074 | |||||||||||||||||||||
| Future production costs | (203 | ) | (576 | ) | (2,216 | ) | (5,003 | ) | (7,998 | ) | |||||||||||||||||
| Future development and abandonment costs | (1 | ) | (17 | ) | (101 | ) | (1,061 | ) | (2,563 | ) | (3,743 | ) | |||||||||||||||
| Future net inflow before income tax | 438 | 2,917 | 3,412 | 10,566 | 17,333 | ||||||||||||||||||||||
| Future income tax | (36 | ) | (1,291 | ) | (795 | ) | (5,729 | ) | (7,851 | ) | |||||||||||||||||
| Future net cash flows | 402 | 1,626 | 2,617 | 4,837 | 9,482 | ||||||||||||||||||||||
| 10% discount factor | (206 | ) | (962 | ) | (1,747 | ) | (3,621 | ) | (6,536 | ) | |||||||||||||||||
| Standardized measure of discounted future net cash flows |
196 | 664 | 870 | 1,216 | 2,946 | ||||||||||||||||||||||
| Total | 8,326 | 5,518 | 20,777 | 9,601 | 11,905 | 2,524 | 3,959 | 1,628 | 64,238 |
- 101 -
Contents
Eni Fact Book Supplemental oil and gas information
| Standardized measure of discounted future net cash flows | (euro million) |
| Italy | Rest of Europe | North Africa | Sub-Saharan Africa | Kazakhstan | Rest of Asia | America | Australia and Oceania | Total | ||||||||||
| December 31, 2013 | |||||||||||||||||||||||||||
| Consolidated subsidiaries | |||||||||||||||||||||||||||
| Future cash inflows | 28,829 | 33,319 | 92,661 | 58,252 | 50,754 | 12,487 | 10,227 | 5,294 | 291,823 | ||||||||||||||||||
| Future production costs | (6,250 | ) | (6,836 | ) | (16,611 | ) | (15,986 | ) | (9,072 | ) | (3,876 | ) | (2,379 | ) | (1,417 | ) | (62,427 | ) | |||||||||
| Future development and abandonment costs | (4,593 | ) | (6,202 | ) | (8,083 | ) | (7,061 | ) | (3,445 | ) | (3,960 | ) | (1,561 | ) | (279 | ) | (35,184 | ) | |||||||||
| Future net inflow before income tax | 17,986 | 20,281 | 67,967 | 35,205 | 38,237 | 4,651 | 6,287 | 3,598 | 194,212 | ||||||||||||||||||
| Future income tax | (5,776 | ) | (12,746 | ) | (35,887 | ) | (20,491 | ) | (9,939 | ) | (1,391 | ) | (2,387 | ) | (1,093 | ) | (89,710 | ) | |||||||||
| Future net cash flows | 12,210 | 7,535 | 32,080 | 14,714 | 28,298 | 3,260 | 3,900 | 2,505 | 104,502 | ||||||||||||||||||
| 10% discount factor | (5,048 | ) | (2,110 | ) | (14,327 | ) | (5,619 | ) | (16,984 | ) | (1,683 | ) | (1,353 | ) | (1,201 | ) | (48,325 | ) | |||||||||
| Standardized measure of discounted future net cash flows |
7,162 | 5,425 | 17,753 | 9,095 | 11,314 | 1,577 | 2,547 | 1,304 | 56,177 | ||||||||||||||||||
| Equity-accounted entities | |||||||||||||||||||||||||||
| Future cash inflows | 524 | 4,041 | 262 | 17,239 | 22,066 | ||||||||||||||||||||||
| Future production costs | (164 | ) | (1,465 | ) | (38 | ) | (5,467 | ) | (7,134 | ) | |||||||||||||||||
| Future development and abandonment costs | (17 | ) | (85 | ) | (73 | ) | (2,299 | ) | (2,474 | ) | |||||||||||||||||
| Future net inflow before income tax | 343 | 2,491 | 151 | 9,473 | 12,458 | ||||||||||||||||||||||
| Future income tax | (20 | ) | (1,617 | ) | (61 | ) | (4,156 | ) | (5,854 | ) | |||||||||||||||||
| Future net cash flows | 323 | 874 | 90 | 5,317 | 6,604 | ||||||||||||||||||||||
| 10% discount factor | (175 | ) | (401 | ) | (20 | ) | (3,681 | ) | (4,277 | ) | |||||||||||||||||
| Standardized measure of discounted future net cash flows |
148 | 473 | 70 | 1,636 | 2,327 | ||||||||||||||||||||||
| Total | 7,162 | 5,425 | 17,901 | 9,568 | 11,314 | 1,647 | 4,183 | 1,304 | 58,504 |
- 102 -
Contents
Eni Fact Book Supplemental oil and gas information
| Changes in standardized measure of discounted future net cash flows | (euro million) |
| Consolidated subsidiaries | Equity-accounted entities | Total | ||||
| Standardized measure of discounted future net cash flows at December 31, 2010 | 46,077 | 1,083 | 47,160 | ||||||
| Increase (decrease): | |||||||||
| - sales, net of production costs | (23,744 | ) | (300 | ) | (24,044 | ) | |||
| - net changes in sales and transfer prices, net of production costs | 40,961 | 442 | 41,403 | ||||||
| - extensions, discoveries and improved recovery, net of future production and development costs | 1,580 | 2,457 | 4,037 | ||||||
| - changes in estimated future development and abandonment costs | (3,890 | ) | (392 | ) | (4,282 | ) | |||
| - development costs incurred during the period that reduced future development costs | 7,301 | 866 | 8,167 | ||||||
| - revisions of quantity estimates | 1,337 | (87 | ) | 1,250 | |||||
| - accretion of discount | 8,640 | 235 | 8,875 | ||||||
| - net change in income taxes | (17,067 | ) | (1,678 | ) | (18,745 | ) | |||
| - purchase of reserves in-place | 37 | 10 | 47 | ||||||
| - sale of reserves in-place | (146 | ) | (146 | ) | |||||
| - changes in production rates (timing) and other | 1,152 | 24 | 1,176 | ||||||
| Net increase (decrease) | 16,161 | 1,577 | 17,738 | ||||||
| Standardized measure of discounted future net cash flows at December 31, 2011 | 62,238 | 2,660 | 64,898 | ||||||
| Increase (decrease): | |||||||||
| - sales, net of production costs | (28,595 | ) | (325 | ) | (28,920 | ) | |||
| - net changes in sales and transfer prices, net of production costs | 2,264 | (56 | ) | 2,208 | |||||
| - extensions, discoveries and improved recovery, net of future production and development costs | 4,868 | 812 | 5,680 | ||||||
| - changes in estimated future development and abandonment costs | (3,802 | ) | (357 | ) | (4,159 | ) | |||
| - development costs incurred during the period that reduced future development costs | 8,199 | 409 | 8,608 | ||||||
| - revisions of quantity estimates | 3,725 | 824 | 4,549 | ||||||
| - accretion of discount | 12,527 | 477 | 13,004 | ||||||
| - net change in income taxes | 2,207 | (830 | ) | 1,377 | |||||
| - purchase of reserves in-place | |||||||||
| - sale of reserves in-place | (1,509 | ) | (615 | ) | (2,124 | ) | |||
| - changes in production rates (timing) and other | (830 | ) | (53 | ) | (883 | ) | |||
| Net increase (decrease) | (946 | ) | 286 | (660 | ) | ||||
| Standardized measure of discounted future net cash flows at December 31, 2012 | 61,292 | 2,946 | 64,238 | ||||||
| Increase (decrease): | (24,576 | ) | (261 | ) | (24,837 | ) | |||
| - sales, net of production costs | (3,632 | ) | (223 | ) | (3,855 | ) | |||
| - net changes in sales and transfer prices, net of production costs | |||||||||
| - extensions, discoveries and improved recovery, net of future production and development costs | 1,699 | 3 | 1,702 | ||||||
| - changes in estimated future development and abandonment costs | (6,821 | ) | (427 | ) | (7,248 | ) | |||
| - development costs incurred during the period that reduced future development costs | 8,456 | 665 | 9,121 | ||||||
| - revisions of quantity estimates | 6,385 | (298 | ) | 6,087 | |||||
| - accretion of discount | 11,937 | 521 | 12,458 | ||||||
| - net change in income taxes | 5,587 | 379 | 5,966 | ||||||
| - purchase of reserves in-place | 74 | 74 | |||||||
| - sale of reserves in-place | (252 | ) | (770 | ) | (1,022 | ) | |||
| - changes in production rates (timing) and other | (3,972 | ) | (208 | ) | (4,180 | ) | |||
| Net increase (decrease) | (5,115 | ) | (619 | ) | (5,734 | ) | |||
| Standardized measure of discounted future net cash flows at December 31, 2013 | 56,177 | 2,327 | 58,504 |
- 103 -
Contents
Eni Fact Book Quarterly information
Quarterly information
| Main financial data (a) (b) |
| 2011 | 2012 | 2013 | ||||
| (euro million) | I quarter | II quarter | III quarter | IV quarter | I quarter | II quarter | III quarter | IV quarter | I quarter | II quarter | III quarter | IV quarter | |||||||||||||||||||||||||||||||||
| Net sales from operations | 28,408 | 24,118 | 25,516 | 29,648 | 107,690 | 33,140 | 30,063 | 31,494 | 32,523 | 127,220 | 31,165 | 28,111 | 29,423 | 26,023 | 114,722 | ||||||||||||||||||||||||||||||
| Operating profit | 5,583 | 3,604 | 4,241 | 3,375 | 16,803 | 6,549 | 2,791 | 4,081 | 1,650 | 15,071 | 3,834 | 1,459 | 3,303 | 260 | 8,856 | ||||||||||||||||||||||||||||||
| Adjusted operating profit: | 5,010 | 3,717 | 4,267 | 4,236 | 17,230 | 6,237 | 4,221 | 4,370 | 4,970 | 19,798 | 3,713 | 1,947 | 3,439 | 3,519 | 12,618 | ||||||||||||||||||||||||||||||
| Exploration
& Production |
4,131 | 3,822 | 3,909 | 4,213 | 16,075 | 5,095 | 4,239 | 4,336 | 4,867 | 18,537 | 3,999 | 3,409 | 3,917 | 3,321 | 14,646 | ||||||||||||||||||||||||||||||
| Gas & Power | 335 | (314 | ) | (196 | ) | (72 | ) | (247 | ) | 1,019 | (401 | ) | (304 | ) | 42 | 356 | (227 | ) | (436 | ) | (356 | ) | 356 | (663 | ) | ||||||||||||||||||||
| Refining
& Marketing |
(149 | ) | (124 | ) | 2 | (268 | ) | (539 | ) | (224 | ) | (142 | ) | 52 | (7 | ) | (321 | ) | (152 | ) | (174 | ) | (61 | ) | (95 | ) | (482 | ) | |||||||||||||||||
| Versalis | (13 | ) | (32 | ) | (77 | ) | (151 | ) | (273 | ) | (169 | ) | (25 | ) | (173 | ) | (116 | ) | (483 | ) | (63 | ) | (82 | ) | (111 | ) | (130 | ) | (386 | ) | |||||||||||||||
| Engineering
& Construction |
342 | 378 | 333 | 390 | 1,443 | 378 | 389 | 387 | 320 | 1,474 | 204 | (680 | ) | 238 | 154 | (84 | ) | ||||||||||||||||||||||||||||
| Other activities | (45 | ) | (60 | ) | (52 | ) | (69 | ) | (226 | ) | (45 | ) | (57 | ) | (40 | ) | (80 | ) | (222 | ) | (55 | ) | (52 | ) | (52 | ) | (51 | ) | (210 | ) | |||||||||||||||
| Corporate
and financial companies |
(84 | ) | (69 | ) | (94 | ) | (19 | ) | (266 | ) | (80 | ) | (99 | ) | (64 | ) | (82 | ) | (325 | ) | (82 | ) | (76 | ) | (92 | ) | (82 | ) | (332 | ) | |||||||||||||||
| Unrealized profit intragroup elimination and consolidation adjustments |
493 | 116 | 442 | 212 | 1,263 | 263 | 317 | 176 | 26 | 782 | 89 | 38 | (44 | ) | 46 | 129 | |||||||||||||||||||||||||||||
| Net profit (c) | 2,547 | 1,254 | 1,770 | 1,289 | 6,860 | 3,617 | 227 | 2,485 | 1,461 | 7,790 | 1,543 | 275 | 3,989 | (647 | ) | 5,160 | |||||||||||||||||||||||||||||
| - continuing operations | 2,614 | 1,197 | 1,775 | 1,316 | 6,902 | 3,544 | 156 | 2,464 | (1,964 | ) | 4,200 | 1,543 | 275 | 3,989 | (647 | ) | 5,160 | ||||||||||||||||||||||||||||
| - discontinued operations | (67 | ) | 57 | (5 | ) | (27 | ) | (42 | ) | 73 | 71 | 21 | 3,425 | 3,590 | |||||||||||||||||||||||||||||||
| Capital expenditure | 2,615 | 3,343 | 2,568 | 3,383 | 11,909 | 2,632 | 3,015 | 3,224 | 3,890 | 12,761 | 3,119 | 2,812 | 3,053 | 3,766 | 12,750 | ||||||||||||||||||||||||||||||
| Investments | 41 | 87 | 92 | 140 | 360 | 245 | 61 | 207 | 56 | 569 | 113 | 63 | 40 | 101 | 317 | ||||||||||||||||||||||||||||||
| Net borrowings at period end | 24,951 | 25,978 | 28,273 | 28,032 | 28,032 | 27,426 | 26,909 | 19,617 | 15,511 | 15,511 | 15,985 | 16,492 | 15,146 | 15,428 | 15,428 |
(a) Quarterly data are unaudited. (b) In accordance with the guidelines of IFRS 5, results of the Italian regulated businesses managed by Snam divested in accordance to Article 15 of Law Decree No. 1 of January 24, 2012, enacted into Law No. 27 of March 24, 2012 have been reported as discontinued operations from July 1, 2012. Prior year data have been reclassified accordingly. (c) Net profit attributable to Eni’s shareholders. |
| Key market indicators |
| 2011 | 2012 | 2013 | ||||
| I quarter | II quarter | III quarter | IV quarter | I quarter | II quarter | III quarter | IV quarter | I quarter | II quarter | III quarter | IV quarter | |||||||||||||||||||
| Average price of Brent dated crude oil (a) | 104.97 | 117.36 | 113.46 | 109.31 | 111.27 | 118.49 | 108.19 | 109.61 | 110.02 | 111.58 | 112.60 | 102.44 | 110.37 | 109.27 | 108.66 | |||||||||||||||
| Average EUR/USD exchange rate (b) | 1.367 | 1.439 | 1.413 | 1.348 | 1.392 | 1.311 | 1.281 | 1.250 | 1.297 | 1.285 | 1.321 | 1.306 | 1.324 | 1.361 | 1.328 | |||||||||||||||
| Average price in euro of Brent dated crude oil | 76.79 | 81.56 | 80.30 | 81.09 | 79.94 | 90.38 | 84.46 | 87.69 | 84.83 | 86.83 | 85.24 | 78.44 | 83.36 | 80.29 | 81.82 | |||||||||||||||
| Average European refining margin (c) | 1.74 | 1.09 | 2.87 | 2.52 | 2.06 | 2.92 | 5.89 | 7.96 | 2.54 | 4.83 | 3.97 | 3.97 | 2.14 | 0.48 | 2.64 | |||||||||||||||
| Average European refining margins Brent/Ural (c) | 3.35 | 2.20 | 2.92 | 3.13 | 2.90 | 3.26 | 6.31 | 7.35 | 2.83 | 4.94 | 4.30 | 3.76 | 1.69 | 0.64 | 2.60 | |||||||||||||||
| Average European refining margins in euro | 1.27 | 0.76 | 2.03 | 1.87 | 1.48 | 2.23 | 4.60 | 6.37 | 1.96 | 3.76 | 3.01 | 3.04 | 1.62 | 0.35 | 1.99 | |||||||||||||||
| Price of NBP gas (d) | 9.09 | 9.36 | 8.74 | 8.92 | 9.03 | 9.34 | 9.09 | 9.00 | 10.49 | 9.48 | 11.46 | 10.06 | 10.11 | 10.95 | 10.64 | |||||||||||||||
| Euribor - three-month euro rate (%) | 1.1 | 1.4 | 1.6 | 1.5 | 1.4 | 1.0 | 0.7 | 0.4 | 0.2 | 0.6 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | |||||||||||||||
| Libor - three-month dollar rate (%) | 0.3 | 0.3 | 0.3 | 0.5 | 0.3 | 0.5 | 0.5 | 0.4 | 0.3 | 0.4 | 0.3 | 0.3 | 0.3 | 0.2 | 0.3 |
(a) In USD per barrel. Source: Platt’s Oilgram. (b) Source: BCE. (c) In USD per barrel FOB Mediterranean Brent dated crude oil. Eni elaborations on Platt’s Oilgram data. (d) In USD per BTU. Source Platt’s Oilgram. |
- 104 -
Contents
Eni Fact Book Quarterly information
| Main operating data |
| 2011 | 2012 | 2013 | ||||
| I quarter | II quarter | III quarter | IV quarter | I quarter | II quarter | III quarter | IV quarter | I quarter | II quarter | III quarter | IV quarter | |||||||||||||||||||
| Liquids production | (kbbl/d) | 899 | 793 | 793 | 896 | 845 | 867 | 856 | 891 | 912 | 882 | 818 | 845 | 851 | 816 | 833 | ||||||||||||||||
| Natural gas production | (mmcf/d) | 4,356 | 3,867 | 3,773 | 4,345 | 4,085 | 4,480 | 4,394 | 4,545 | 4,584 | 4,501 | 4,290 | 4,410 | 4,402 | 4,177 | 4,320 | ||||||||||||||||
| Hydrocarbons production | (kboe/d) | 1,684 | 1,489 | 1,473 | 1,678 | 1,581 | 1,683 | 1,656 | 1,718 | 1,747 | 1,701 | 1,600 | 1,648 | 1,653 | 1,577 | 1,619 | ||||||||||||||||
| Italy | 186 | 172 | 193 | 191 | 186 | 188 | 187 | 187 | 195 | 189 | 180 | 181 | 189 | 192 | 186 | |||||||||||||||||
| Rest of Europe | 224 | 221 | 203 | 217 | 216 | 206 | 173 | 162 | 172 | 178 | 158 | 151 | 141 | 173 | 155 | |||||||||||||||||
| North Africa | 505 | 384 | 367 | 497 | 438 | 570 | 573 | 593 | 610 | 586 | 554 | 598 | 569 | 506 | 556 | |||||||||||||||||
| Sub-Saharan Africa | 375 | 356 | 364 | 381 | 369 | 335 | 333 | 387 | 324 | 345 | 313 | 322 | 377 | 316 | 332 | |||||||||||||||||
| Kazakhstan | 117 | 106 | 96 | 105 | 106 | 111 | 106 | 90 | 99 | 102 | 103 | 105 | 90 | 102 | 100 | |||||||||||||||||
| Rest of Asia | 120 | 104 | 103 | 121 | 112 | 111 | 128 | 128 | 149 | 129 | 141 | 150 | 143 | 143 | 144 | |||||||||||||||||
| America | 131 | 122 | 121 | 128 | 126 | 119 | 120 | 135 | 166 | 135 | 119 | 110 | 117 | 116 | 116 | |||||||||||||||||
| Australia and Oceania | 26 | 24 | 26 | 38 | 28 | 43 | 36 | 36 | 32 | 37 | 32 | 31 | 27 | 29 | 30 | |||||||||||||||||
| Production sold | (mmboe) | 145.7 | 129.1 | 130.0 | 143.7 | 548.5 | 149.2 | 144.6 | 150.5 | 154.4 | 598.7 | 135.8 | 140.3 | 141.8 | 137.4 | 555.3 | ||||||||||||||||
| Sales of natural gas to third parties | (bcm) | 27.87 | 17.33 | 14.59 | 21.23 | 81.02 | 26.12 | 16.38 | 16.56 | 21.91 | 80.97 | 26.71 | 16.13 | 15.27 | 22.17 | 80.28 | ||||||||||||||||
| Own consumption of natural gas | 1.65 | 1.53 | 1.41 | 1.62 | 6.21 | 1.77 | 1.57 | 1.58 | 1.51 | 6.43 | 1.56 | 1.29 | 1.53 | 1.55 | 5.93 | |||||||||||||||||
| Sales to third parties and own consumption | 29.52 | 18.86 | 16.00 | 22.85 | 87.23 | 27.89 | 17.95 | 18.14 | 23.42 | 87.40 | 28.27 | 17.42 | 16.80 | 23.72 | 86.21 | |||||||||||||||||
| Sales of natural gas of Eni’s affiliates (net to Eni) | 2.81 | 2.14 | 1.96 | 2.62 | 9.53 | 2.72 | 2.20 | 1.34 | 1.66 | 7.92 | 1.95 | 1.62 | 1.55 | 1.84 | 6.96 | |||||||||||||||||
| Total sales and own consumption of natural gas | 32.33 | 21.00 | 17.96 | 25.47 | 96.76 | 30.61 | 20.15 | 19.48 | 25.08 | 95.32 | 30.22 | 19.04 | 18.35 | 25.56 | 93.17 | |||||||||||||||||
| Electricity sales | (TWh) | 9.68 | 9.66 | 9.55 | 11.39 | 40.28 | 12.29 | 9.62 | 10.54 | 10.13 | 42.58 | 9.16 | 8.69 | 8.45 | 8.75 | 35.05 | ||||||||||||||||
| Sales of refined products | (mmtonnes) | 10.34 | 11.03 | 13.16 | 10.49 | 45.02 | 10.01 | 12.73 | 13.25 | 12.34 | 48.33 | 10.65 | 10.42 | 11.91 | 10.51 | 43.49 | ||||||||||||||||
| Retail sales in Italy | 1.94 | 2.14 | 2.23 | 2.05 | 8.36 | 1.81 | 1.98 | 2.24 | 1.80 | 7.83 | 1.65 | 1.71 | 1.71 | 1.57 | 6.64 | |||||||||||||||||
| Wholesale sales in Italy | 2.19 | 2.22 | 2.47 | 2.48 | 9.36 | 2.06 | 2.18 | 2.20 | 2.18 | 8.62 | 1.86 | 2.08 | 2.26 | 2.17 | 8.37 | |||||||||||||||||
| Retail sales Rest of Europe | 0.70 | 0.76 | 0.80 | 0.75 | 3.01 | 0.72 | 0.76 | 0.81 | 0.75 | 3.04 | 0.68 | 0.78 | 0.83 | 0.76 | 3.05 | |||||||||||||||||
| Wholesale sales
Rest of Europe |
0.81 | 0.97 | 1.08 | 0.98 | 3.84 | 0.89 | 1.03 | 1.05 | 0.99 | 3.96 | 0.94 | 1.08 | 1.10 | 1.11 | 4.23 | |||||||||||||||||
| Wholesale
sales outside Europe |
0.10 | 0.11 | 0.11 | 0.11 | 0.43 | 0.10 | 0.11 | 0.10 | 0.11 | 0.42 | 0.10 | 0.11 | 0.11 | 0.11 | 0.43 | |||||||||||||||||
| Other markets | 4.60 | 4.83 | 6.47 | 4.12 | 20.02 | 4.43 | 6.67 | 6.85 | 6.51 | 24.46 | 5.42 | 4.66 | 5.90 | 4.79 | 20.77 |
- 105 -
Contents
Contents
Contents
Contents
Table of Contents
Contents
Contents
Table of Contents
|
|
|||||||||
| Contents | |||||||||
| 2 | Our activities | ||||||||
| 4 | Eni at a glance | ||||||||
| 6 | The competitive environment | ||||||||
| 8 | Our strategy | ||||||||
| Business review | |||||||||
| 10 | n Exploration & Production | ||||||||
| 15 | n Gas & Power | ||||||||
| This
summary review comprises an extract of the description of
the businesses, the management’s discussion and
analysis of financial condition and results of operations
and certain other Company information from Eni’s
Annual Report for the year ended December 31, 2013. It
does not contain sufficient information to allow as full
an understanding of financial results, operating
performance and business developments of Eni as "Eni
2013 Annual Report". It is not deemed to be filed or submitted with any Italian or US market or other regulatory authorities. You may obtain a copy of "Summary Annual Review - Eni in 2013" and "Eni 2013 Annual Report" on request, free of charge (see the request form on Eni’s web site – eni.com – under the section "Publications"). The "Summary Annual Review" and "Eni 2013 Annual Report" may be downloaded from Eni’s web site under the section "Publications". Financial data presented in this
report is based on consolidated financial statements
prepared in accordance with the IFRS endorsed by the EU. |
to
events and depend on circumstances that will or may occur
in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors, including the timing of bringing new fields on stream; management’s ability in carrying out industrial plans and in succeeding in commercial transactions; future levels of industry product supply; demand and pricing; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and regulations; development and use of new technologies; changes in public expectations and other changes in business conditions; the actions of competitors and other factors discussed elsewhere in this document. As Eni shares, in the
form of ADRs, are listed on the New York Stock Exchange
(NYSE), an Annual Report on Form 20-F has been filed with
the US Securities and Exchange Commission in accordance
with the US Securities Exchange Act of 1934. Hard copies
may be obtained free of charge (see the request form on
Eni’s web site – eni.com – under
the section "Publications"). |
20 | n Refining & Marketing | ||||||
| 25 | n Versalis | ||||||||
| 27 | n Engineering & Construction | ||||||||
| Financial review | |||||||||
| 30 | Group results for the year | ||||||||
| 30 | Trading environment | ||||||||
| 30 | 2013 results | ||||||||
| 32 | Outlook for 2014 | ||||||||
| 33 | Financial risk factors | ||||||||
| 35 | Financial information | ||||||||
| 43 | n Frequently used terms | ||||||||
| 46 | Directors and officers | ||||||||
| 50 | Investor information | ||||||||
Contents
Eni in 2013 Our activities
- 2 -
Contents
Eni in 2013 Our activities
- 3 -
Contents
Eni in 2013 Eni at a glance
Eni at a glance
- 4 -
Contents
Eni in 2013 Eni at a glance
- 5 -
Contents
Eni in 2013 The competitive environment
The competitive environment
- 6 -
Contents
Eni in 2013 The competitive environment
- 7 -
Contents
Eni in 2013 Our strategy
| Our strategy Eni’s excellent market position and competitive advantages owe to the Company’s strategic choices which are consistent with the long-term nature of the business, and relies on a sustainable business model founded on an established way of doing business, in a framework of clear and straightforward rules of corporate governance, rigorous risk management and adoption of the highest ethical standards.
|
 |
|||
| The oil&gas industry is
copying with a complex scenario featured by the global
economic slowdown, particularly in the Euro-zone,
increasing political instability in oil-rich Countries,
and volatile market conditions for energy commodities. Against this backdrop, Eni believes that a sustainable business conduct contributes to both the achievement of industrial performance, and the mitigation of political, financial and operational risks. This strengthens Eni’s role as a trustworthy and reliable partner, who is ready to capture new opportunities in the marketplace and able to manage the complexities of the environment. Eni’s strategy for the 2014-2017 four-year period is intended to grow oil and gas production business, which is characterized by improving returns and to restructure Eni’s less profitable Europe-based businesses in the marketing of gas and in the production and marketing of refined products and chemical products in order to increase the cash flows deriving from our businesses. Our planning assumptions do not contemplate any
improvement in the fundamentals of the European
industries of gas, refining and petrochemicals which will
continue to be adversely affected by weak demand,
overcapacity and oversupplies, strong competition and
other cost disadvantages. As a part of our strategy, we
are also planning to restore the profitability of our
listed subsidiary Saipem, which in 2013 was impacted by
activity downturn and extraordinary contract losses. |
the Exploration &
Production which will absorb 83% of planned expenditure. Eni will focus on preserving a balanced and well-established financial structure. Management seeks to maintain the ratio of net borrowings to total equity within a target range of 0.1-0.3 under the assumption of a Brent price scenario of 104 $/bbl in 2014 which will progressively decline in the subsequent years to our long-term case of 90 $/bbl from 2017 onwards and other trading assumptions, as well as the commitments of funding capital expenditure plans and implementing the Company’s progressive dividend policy and share repurchases. Eni expects that cash flow from operations will grow at a healthy rate along the plan period and provide enough resources to fund capital expenditure plans, to pay a regular dividend the amount of which will be set in accordance to our progressive dividend policy and to maintain leverage within the above mentioned range. Cash flow growth will be driven by increased cash generation in our Exploration & Production segment which will be underpinned by profitable production growth, cost control and capital discipline, as well as the restructuring of our Gas & Power, Refining & Marketing and Chemical businesses which will turn cash positive in the plan period due to contract renegotiations, expansion in profitable market segments and reduced exposure to the commodity risk. Furthermore, management expects to deliver approximately euro 9 billion of additional cash flows from asset disposals, of which euro 2.2 billion have been already cashed-in following the closing of the disposal of our interest in Artic Russia early in January 2014. We plans to distribute cash to shareholders by means of dividends and our multi-year buyback program of up to 10% of outstanding shares. Our dividend policy contemplates a progressive, growing dividend at a rate which is expected to be determined year-to-year taking into account Eni’s underlying earnings and cash flow growth as well as capital expenditure requirements and the targeted financial |
structure. Management will
also evaluate the achievement of the targeted production
levels in the Exploration & Production segment, the
status of renegotiations at gas long-term supply
contracts in the Gas & Power segment and the delivery
of efficiency gains in the downstream businesses.
Considering all these variables, we expects to propose to
Shareholders approval a dividend of euro 1.12 per share
for fiscal year 2014, an increase of approximately 1.8%
from 2013. We are also planning to continue repurchasing the Eni shares, which has been authorized by the Shareholders Meeting for a total amount of euro 6 billion. Share repurchases have commenced since the beginning of 2014. In the future, we expect to repurchase our share at our judgment when a number of conditions are met. These include, but are not limited to, current trends in the trading environment, a level of leverage which we are comfortable with and well within our target range limit of 0.3, and full funding of capital expenditure requirements and dividends throughout the plan period. The other leg of our long-term strategy will be a continuing focus on managing the upstream risks. We intend to mitigate the political risk by expanding the geographic reach of our activities and deploying the Eni cooperation model with host Countries based on the commitment to maximize the value delivered to local communities and invest in long-term initiatives that benefit our local partners (access to energy, education and health). The risk of “project delivery” will require the in-source of critical engineering and project management activities as well as careful monitoring of supply-chain programming. Finally, the operational risk relating to drilling activities will be managed by applying Eni’s rigorous procedures throughout the engineering and execution stages, leveraging on proprietary drilling technologies, internal skills and know-how, increased control of operations and specific technologies aimed at minimizing blow-out risks and responding quickly and effectively in case of emergencies. |
||
- 8 -
Contents
Contents
Eni in 2013 Business review / Exploration & Production
Key performance indicators |
2011 |
2012 |
2013 |
||||||
| Employees injury frequency rate | (No. of accidents per million of worked hours) | 0.41 | 0.28 | 0.14 | ||||
| Contractors injury frequency rate | 0.41 | 0.36 | 0.26 | |||||
| Fatality index | (No. of fatalities per 100 million of worked hours) | 1.83 | 0.81 | - | ||||
| Net sales from operations (a) | (euro million) | 29,121 | 35,881 | 31,268 | ||||
| Operating profit | 15,887 | 18,470 | 14,871 | |||||
| Adjusted operating profit | 16,075 | 18,537 | 14,646 | |||||
| Adjusted net profit | 6,865 | 7,426 | 5,952 | |||||
| Capital expenditure | 9,435 | 10,307 | 10,475 | |||||
| Adjusted ROACE | (%) | 17.2 | 17.6 | 13.5 | ||||
| Profit per boe (b) | ($/boe) | 17.0 | 16.0 | 15.5 | ||||
| Opex per boe (b) | 7.3 | 7.1 | 8.3 | |||||
| Cash Flow per boe (d) | 31.7 | 32.8 | 31.9 | |||||
| Finding & Development cost per boe (c) (d) | 18.8 | 17.4 | 19.2 | |||||
| Average hydrocarbons realizations (d) | 72.26 | 73.39 | 71.87 | |||||
| Production of hydrocarbons (d) | (kboe/d) | 1,581 | 1,701 | 1,619 | ||||
| Estimated net proved reserves of hydrocarbons (d) | (mmboe) | 7,086 | 7,166 | 6,535 | ||||
| Reserves life index (d) | (years) | 12.3 | 11.5 | 11.1 | ||||
| Organic reserves replacement ratio (d) | (%) | 143 | 147 | 105 | ||||
| Employees at year end | (number) | 10,425 | 11,304 | 12,352 | ||||
| of which: outside Italy | 6,628 | 7,371 | 8,219 | |||||
| Oil spills due to operations (>1 bbl) | (bbl) | 2,930 | 3,015 | 1,728 | ||||
| Oil spills from sabotage (>1 bbl) | 7,657 | 8,436 | 5,493 | |||||
| Produced water re-injected | (%) | 43 | 49 | 55 | ||||
| Direct GHG emissions | (mmtonnes CO2 eq) | 23.59 | 28.46 | 25.71 | ||||
| of which: from flaring | 9.55 | 9.46 | 8.48 | |||||
| Community investment | (euro million) | 62 | 59 | 53 | ||||
| (a) Before elimination of intragroup sales. (b) Consolidated subsidiaries. (c) Three-year average. (d) Includes Eni’s share of equity-accounted entities. |
2013 Highlights
| Performance
of the year > 2013 marked a strong performance in HSE activities with all KPIs improving from the previous year: • the injury frequency rates of employees and contractors decreased by 48.7% and by 28.8% respectively, with a zero fatality index; • greenhouse gas emissions decreased by 9.7% (down by 10.4% from flaring); • oil spills due to operations decreased by 42.7%; oil spills from sabotage decreased by 34.9%; |
• zero blow-outs for
the tenth consecutive year; • water re-injection was a record at 55% of water used in operations. > Adjusted net profit declined by euro 1,474 million, or 20%, due to extraordinary disruptions in Libya, Nigeria and Algeria. Cash generation was strong with $30 per barrel due to our low cost position. > Oil and natural gas production of 1,619 kboe/day declined by 4.8% from 2012 mainly due to geopolitical factors. |
>
Estimated net proved reserves at December 31, 2013
amounted to 6.54 bboe based on a reference Brent price of
$108 per barrel. The organic reserves replacement ratio
was 105% with a reserves life index of 11.1 years (11.5
years in 2012). > Development expenditure was euro 8,580 million (up by 3.3% from 2012) to support continuing production ramp-up and progress on major projects particularly in Norway, the United States, Angola, Congo, Italy, Nigeria, Kazakhstan, Egypt and the United Kingdom. |
- 10 -
Contents
Eni in 2013 Business review / Exploration & Production
| >
Our exploration results for the year were robust with 1.8
bln boe of discovered resources, at a competitive cost of
$1.2 per barrel. Portfolio |
in the high potential areas
such as Cyprus, Russian offshore and Kenya, as well as
legacy areas such as Australia, Indonesia, China, Congo,
Egypt and Norway. > Achieved start-up of the early production of the giant Junin 5 oil field (Eni’s interest 40%) in the Orinoco Belt in Venezuela, targeting a production plateau of 75 kbbl/d in 2015. > In line with production plans, we achieved main production start-ups, in addition to the above mentioned Junin 5, including the MLE-CAFC (Eni’s interest 75%) and El Merk (Eni’s interest 12.25%) fields in Algeria, the Angola LNG project (Eni’s interest 13.6%) and other fields in Egypt, Nigeria, Norway and the United Kingdom. In addition 7 main FIDs were sanctioned. The start-up of new fields and continuing production ramp-ups contributed with 140 boe/day of new production. Exploration activity |
operator with a 50%
interest). Management estimates that Area 4 may contain
up to 2,650 billion cubic meters of gas in place. > We made the extraordinary Nenè Marine discovery in the mature Marine XII Block (Eni operator with 65%) offshore Congo, where we successfully applied the know-how and expertise gained in exploring frontier areas. > In the Norwegian section of the Barents Sea we continued to expand the mineral potential thanks to the Skavl discovery (Eni’s interest 30%) which added to the Skrugard and Havis findings, increasing the total recoverable resources at over 500 million barrels at 100%. > The appraisal of the Sankofa East discovery (Eni operator with a 47.22% interest) offshore Ghana surpassed our previous estimates with 450 million barrels of oil in place and recoverable reserves up to 150 million barrels. > Further exploration successes of the year were reported in Australia, Angola, Egypt, Norway and Pakistan where existing facilities ensure to reduce time-to-market and costs. |
| Strategies Eni’s
Exploration & Production business boasts a strong
competitive position in a number of strategic oil and gas
basins in the world, namely the Caspian Region, North and
Sub-Saharan Africa, Venezuela, the Barents Sea and the
Gulf of Mexico. |
leveraging on our leading
exploration activity where we boast an impressive
track-record in discovering new resources. All these
industrial targets are planned to be achieved through a
capital expenditure plan 5% lower than the previous one. Under Eni’s price scenario, management expects to increase operating cash flow by 5% on average in the next four-year plan. This coupled with a continuing focus on capital discipline will drive the achievement of a self-financing ratio of 140% on average. The strong cash generation will be the result of organic production growth, the quality of our portfolio which is largely made up of conventional asset, our phased approach in giant projects, reduced time-to-market and production optimizations. Consistent with the long-term nature of the business, strategic guidelines for our Exploration & Production Division have remained basically unchanged in the years, as follows: • Maintain strong, profitable production growth. |
• Invest in exploration to
enhance growth prospects over the long-term and ensure
reserve replacement. • Develop new projects to fuel future growth. • Consolidate our industry-leading cost position. Management
plans to invest euro 38 billion to develop the
Company’s reserves over the next four years. An
important share of this expenditure will be allocated to
certain development projects which will support the
Company’s long-term production plateau, in
particular we plan to develop the gas discovery in
Mozambique and to progress large and complex projects in
Congo, Indonesia, Venezuela, Nigeria, Norway and
Kazakhstan. We are also planning to maintain a prevailing
share of projects regulated by Production Sharing
Agreement in our portfolio; this will shorten the cost
recovery in an environment of high crude oil prices. |
- 11 -
Contents
Eni in 2013 Business review / Exploration & Production
 |
> Production and reserves: 2013 and outlook In 2013, Eni’s liquids and gas production of 1,619 kboe/d declined by 4.8% from the 2012, reflecting significant force majeure events in particular in Libya, Nigeria and Algeria, which considerably impacted the production level. The contribution of the new fields’ start-ups and continuing production ramp-ups mainly in Algeria and Egypt partly offset the effects of planned facility downtimes and technical problems, in the North Sea and in the Gulf of Mexico respectively, as well as mature field declines. The share of oil and natural gas produced outside Italy was 89% (89% in 2012). In the year we achieved the following main start-ups: (i) the MLE-CAFC project (Eni’s interest 75%) in Algeria. A natural gas treatment plant started operations with a production and export capacity of 320 mmcf/d of gas, 15 kbbl/d of oil and condensates and 12 kbbl/d of LPG. The integrated project MLE-CAFC targets a production plateau of approximately 33 kboe/d net to Eni by 2017; (ii) the El Merk field (Eni 12.25%) in Algeria, where a gas treatment plant is processing 600 mmcf/d and two oil trains 65 kbbl/d each. Production is expected to peak at 18 kboe/d net to Eni in 2015; (iii) the oil and gas Jasmine field (Eni’s interest 33%), in the United Kingdom. A production plateau of 117 kbbl/d (39 kbbl/d net to Eni) is expected in 2014; (iii) the LNG plant managed by the Angola LNG consortium (Eni’s interest 13.6%). The plant will develop approximately 10,594 bcf of gas in 30 years; (iv) the Abo - Phase 3 project in the OML 125 Block (Eni operator with an 85% interest), in Nigeria, with production of approximately 5 kboe/d net to Eni; (v) the giant Junin 5 field (Eni’s interest 40%), in Venezuela. Early production of the first phase is expected to reach a plateau of 75 kbbl/d by the end of 2015, targeting a long-term production |
|||
| billion, which
are intended to appraise the latest discoveries made by
the Company, to explore new plays and to support
continuing reserve replacement. 60% of investments will
be in lower risk environments such as proven and near
field areas. Maintain strong Eni’s Exploration & Production segment
engages in oil and natural gas exploration and field
development and production, as well as LNG operations, in
42 Countries, including Italy, Libya, Egypt, Norway, the
United Kingdom, Angola, Congo, Nigeria, the United
States, Kazakhstan, Russia, Algeria, Australia,
Venezuela, Iraq and Mozambique. Management intends to implement a number of initiatives to support profitability in its upstream operations by exercising tight control on project time schedules |
and costs and reducing the
time span which is necessary to develop and market
reserves. We acknowledge that our results of operations
and production levels for the year have been adversely
impacted by delays and cost overruns at a number of
projects. We plan to mitigate those risks in the future
by: (i) in-sourcing critical engineering and project
management activities also redeploying to other areas key
competences which will be freed with the start-up of
certain strategic projects and increase direct control
and governance on construction and commissioning
activities; (ii) signing framework agreements with major
suppliers, using standardized specifications to speed up
pre-award process for critical equipment and plants,
increasing focus on supply chain programming to optimize
order flows. Based on these initiatives, we believe that
almost all of our projects underway will be completed on
time and on cost schedule. Eni will pursue further growth options by developing unconventional plays, gas-to-LNG projects and integrated gas projects. Finally, we intend to optimize our portfolio of development properties by focusing on areas where our presence is well established, and divesting non-strategic or marginal assets. |
|||
 |
||||
- 12 -
Contents
Eni in 2013 Business review / Exploration & Production
| plateau of 240 kbbl/d; (vi)
the Skuld field (Eni’s interest 11.5%) in Norway,
with a production of approximately 30 kboe/d
(approximately 4 kboe/d net to Eni). The 2014 outlook
for the oil and gas production is substantially in line
with 2013, excluding the impact of the divestment of
Eni’s interest in the Russian gas assets of Artic
Russia, reflecting ongoing Country risks and geopolitical
factors and assuming marginal contribution at the
Kashagan field.
To achieve that target, we intend: |
of operated projects and the
contribution to local development. Actual production volumes will vary from year to year due to the timing of individual project start-ups, operational outages, reservoir performance, regulatory changes, asset sales, severe weather events, price effects under production sharing contracts and other factors. Estimated net proved reserves at December 31, 2013 amounted to 6.54 bboe based on a reference Brent price of $108 per barrel. Additions to proved reserves booked in 2013 were 621 mmboe and derived from: (i) revisions of previous estimates up 508 mmboe, mainly reported in Congo, Iraq, Australia and Nigeria; (ii) extensions, discoveries and other factors up 108 mmboe, with major additions booked in Angola, Indonesia and the United States; (iii) improved recovery were 5 mmboe, reported particularly in Nigeria; (iv) sales of mineral-in-place related to the divestment of above mentioned assets in Russia (652 mmboe) and the United Kingdom (13 mmboe); (v) acquisitions referred to interests in assets located in Egypt (4 mmboe). The reserve life index is 11.1 years. Eni intends to pay special attention to reserve replacement in order to ensure the medium to long-term sustainability of the business. In 2013, we achieved an organic replacement ratio of 105% through fast sanctioning and relentless focus on field development. Going forward, our reserve replacement will be underpinned by our strong focus on exploration and timely conversion of resources into reserves and production, while at the same time fighting depletion and enhancing the recovery factor in existing fields through effective reservoir management. Exploration Exploration is the engine of our strategy in the
upstream business. The exploration success has proven to
be an efficient and effective way to increase the
resource base, a driver of organic production growth and
portfolio diversification also providing a boost to cash
generation by early monetization of part of the
discovered volumes. |
average competitive cost of $1.2 per barrel. |
- 13 -
Contents
Eni in 2013 Business review / Exploration & Production
| appraisal program was
concluded in mid 2013 and negotiations with the local
Authorities are ongoing to sanction the development
phase. The start-up of the project is expected by the end
of 2016. Other significant exploration successes were
achieved in Australia, Angola, Egypt, Norway and Pakistan
where synergies with existing infrastructures will reduce
the time-to-market of discovered resources. In the next four years we will pursue even more ambitious exploration targets, by focusing on the emerging plays in Sub-Saharan Africa, the Barents Sea and Asia. In Africa our objectives are the pre-saline deposits in Congo, Angola and Gabon, the completion of the appraisal campaign in Mozambique and the launch of the exploration activity in the Lamu basin in Kenya. In the Russian section of the Barents Sea we jointly operate with Rosneft a high potential basin where seismic surveys have been started. In the Pacific basin we intend to go ahead with exploration in Vietnam and Myanmar and to confirm our commitment in Indonesia and Australia. We acquired the operatorship of three licenses in the Cypriot deep offshore portion of the Levantine basin, in proximity of large gas discoveries.
|
Future exploration projects
and appraisal activities will attract some euro 5.6
billion in the next four-year time frame to support
continuing reserve replacement. 60% of the projected
expenditure will be made in low-risk environments such as
proven and near field areas. We target the discovery of
3.2 bboe of new resources at a unit cost of approximately
$2.2 per barrel. These discoveries will be developed to
ensure high-margin organic growth. Another option is
their monetization in advance of development activities
by diluting Eni’s interest at an early stage thus
reducing the execution and financial risk as it was the
case with the Mozambique deal. As of December 31, 2013, Eni’s mineral right portfolio consisted of 976 exclusive or shared rights for exploration and development in 42 Countries on five continents for a total acreage of 276,256 square kilometers net to Eni of which developed acreage of 41,538 square kilometers and undeveloped acreage of 234,718 square kilometers net to Eni. Eni’s portfolio was boosted with the acquisition of new exploration licenses in emerging basins which represent new frontiers in oil and gas exploration activity such as Vietnam, Myanmar and Greenland, in the high potential areas, in addition to above mentioned Cyprus, such as Russian offshore and Kenya, as well as legacy areas such as Australia, Indonesia, China, Congo, Egypt and Norway. Develop
new Eni has a strong pipeline of development projects that will fuel the medium and long- |
term growth of its oil and
gas production. The pipeline of projects is
geographically diversified and will become even more
balanced across our hubs. We plan to start-up 26 new major fields in the next four years, mainly Goliat in the Barents Sea, the Block 15/06 West Hub in Angola, the heavy oil and gas Venezuelan assets and Jangkrik in Indonesia, which will add more than 500 kboe/d by 2017, supporting production growth and the replacement of mature production. We expect that costs to develop and operate fields will increase in the next years due to sector-specific inflation, and growing complexity of new projects. We plan to counteract those cost increases by leveraging on cost efficiencies associated with: (i) increasing the scale of our operations as we concentrate our resources on larger fields than in the past where we plan to achieve economies of scale; (ii) expanding projects where we serve as operator. We believe operatorship will enable the Company to exercise better cost control, effectively manage reservoir and production operations, and deploy our safety standards and procedures to minimize risks; and (iii) applying our technologies which we believe can reduce drilling and completion costs. We plan to mitigate the operational risk relating to drilling activities by applying Eni’s rigorous procedures throughout the engineering and execution stages, by leveraging on proprietary drilling technologies, excellent skills and know-how, increased control of operations and by deploying technologies which we believe to be able to reduce blowout risks and to enable the Company to respond quickly and effectively in case of emergencies. |
- 14 -
Contents
Eni in 2013 Business review / Gas & Power
Key performance indicators |
2011 |
2012 |
2013 |
||||||
| Employees injury frequency rate | (No. of accidents per million of worked hours) | 2.44 | 1.84 | 1.31 | |||||||
| Contractors injury frequency rate | 5.22 | 3.64 | 1.81 | ||||||||
| Net sales from operations (a) | (euro million) | 33,093 | 36,200 | 32,124 | |||||||
| Operating profit | (326 | ) | (3,219 | ) | (2,992 | ) | |||||
| Adjusted operating profit | (247 | ) | 354 | (663 | ) | ||||||
| Marketing | (657 | ) | 47 | (837 | ) | ||||||
| International transport | 410 | 309 | 174 | ||||||||
| Adjusted net profit | 252 | 473 | (246 | ) | |||||||
| EBITDA proforma adjusted | 949 | 1,316 | 6 | ||||||||
| Marketing | 257 | 858 | (311 | ) | |||||||
| International transport | 692 | 458 | 317 | ||||||||
| Capital expenditure | 192 | 225 | 232 | ||||||||
| Worldwide gas sales (b) | (bcm) | 96.76 | 95.32 | 93.17 | |||||||
| LNG sales (c) | 15.7 | 14.6 | 12.4 | ||||||||
| Customers in Italy | (million) | 7.10 | 7.45 | 8.00 | |||||||
| Electricity sold | (TWh) | 40.28 | 42.58 | 35.05 | |||||||
| Employees at year end | (number) | 4,795 | 4,752 | 4,514 | |||||||
| Direct GHG emissions | (mmtonnes CO2 eq) | 12.77 | 12.70 | 11.16 | |||||||
| Customer satisfaction index (CSS) (d) | (%) | 88.6 | 89.8 | 90.4 | |||||||
| Water consumption/withdrawals per kWh eq produced | (cm/kWh eq) | 0.014 | 0.012 | 0.017 | |||||||
| (a) Before
elimination of intragroup sales. (b) Include volumes marketed by the Exploration & Production Division of 2.61 bcm (2.73 and 2.86 bcm in 2012 and 2011, respectively). (c) LNG sales of affiliates and associates of the Gas & Power Division (included in worldwide gas sales) and the Exploration & Production Division. (d) The customer satisfaction score for 2013 relates to the first six months as at the date of publication of this Annual Report the Authority for Electricity and Gas has not yet published the data for the second half of the year. |
2013 Highlights
| Performance
of the year > In 2013 our KPI in HSE improved significantly from the previous year with the employees and contractors injury frequency rates down by 28.9% and 50.1%, respectively and GHG emissions down by 12.1%. > The adjusted net loss was euro 246 million, down by euro 719 million from 2012 reflecting the negative impacts of declining demand, strong competition and an oversupplied market on selling prices and margins. > Eni gas sales (93.17 bcm) were flat when excluding the divestment of Galp made in 2012. Sales in the domestic market were driven by higher volumes at spot markets and to importers in Italy (up by 1.08 bcm), while volumes marketed in the main European markets were down 5.61 bcm particularly in Benelux, the Iberian Peninsula and the United Kingdom, due to declining gas |
demand and competitive
pressure. > Electricity sales of 35.05 TWh decreased by 7.53 TWh from 2012, down 17.7%, reflecting lower energy demand and inter-fuel competition. Strategies Eni’s Gas & Power segment engages in supply,
trading and marketing of gas and electricity,
international transport, and LNG supply and marketing.
This segment also includes the activities of electricity
generation. |
production. In the meantime, we have had a build up in gas supplies due to the entry into operations of several LNG projects and a massive development in the production of shale gas in the USA which have progressively reduced the imports of LNG. Those trends have favored the growth of the hubs in Europe where large volumes of gas are traded on a daily basis and spot prices have become the prevailing benchmark in sales to large accounts. Therefore, the profitability of the traditional European gas wholesalers has been squeezed by continuing pricing pressures due to weak fundamentals and reduced unit margins as spot prices have ceased to track the oil-linked cost of gas supplies in long-term contracts. To make matters worse, gas wholesalers have been forced to dispose of additional quantities of gas to reduce the financial risks associated with the take-or-pay clause provided by the |
- 15 -
Contents
Eni in 2013 Business review / Gas & Power
| long-term supply contracts.
We believe that the trends we are facing in the gas
market are structural ones and we do not expect any
improvement in the gas market in Italy and Europe in the
foreseeable future. Against this backdrop, management
reaffirms its commitment in restoring profitability and
preserving cash generation of its gas business leveraging
on a robust turnaround plan which provides for: Overall, we intend to preserve our leading role in the
European gas market and to generate euro 1.2 billion of
EBITDA by the end of the plan period. |
equity gas, particularly
with the start of the gas projects in Mozambique. We will retain our large accounts by offering innovative solutions and develop our customer base in the retail market across Europe. In addition, the Company intends to capture margins improvements by means of its enhanced optimization and trading activities by entering derivative contracts both in the commodity and the financial trading venues in order to capture possible favorable trends in market prices, within the limits set by internal policies and guidelines that define the maximum tolerable level of market risk, leveraging the size and uniqueness of Eni’s portfolio of contracts and transport capacities. Finally we expect to generate saving of approximately euro 300 million p.a. by rationalizing logistics, by restructuring our foreign subsidiaries to eliminate unnecessary staff costs and by reorganizing back-office activities, IT, billings and other overhead costs, as well as tight control of working capital. Gas Market trends In the latest years competitive dynamics and the
economics of the European gas sector have structurally
changed reflecting reduced sales opportunities due to
lower gas demand, expansion of renewable sources of
electricity and use of coal on a large scale in firing
power plants due to cost advantages, abundant supplies on
the marketplace related to worldwide flows of LNG and
continuing pipeline upgrades for importing natural gas
from Algeria and Russia to Europe and other factors as
the massive increase of shale gas production in the
United States which substantially reduced the
Country’s dependence on LNG imports. |
connection with take-or-pay,
long-term gas supply contracts and the necessity to
minimize the associated financial exposure have forced
gas operators to compete more aggressively on pricing in
consideration of lower selling opportunities, with
negative effects on selling prices, and hence
profitability. In 2013 gas demand continued its downward trajectory as it was down by 7 per cent. and 1 per cent. in Italy and Europe respectively, driven by the economic downturn and sharply lower gas consumption in the thermoelectric sector. While there are signs that demand may have finally bottomed by end of 2013, there is still little visibility on the evolution of gas demand due to the risks and uncertainties associated with a number of ongoing trends: • uncertainties and volatility in the macroeconomic cycle; particularly the anticipated slow recovery of the economic activity in Europe will weigh on the prospects of any sustainable rebound in gas demand; • EU policies intended on one hand to reduce greenhouse gas emissions which should negatively impact the consumption of coal in producing electricity to advantage of gas; on the other hand continuing subsides to promote the development of renewable energy sources might jeopardize a recovery in gas-fired thermoelectric production which management still considers to be potentially the main engine of growth in gas demand; • real developments following announcements made by certain national governments in Europe to shut down nuclear plants; • growing adoption of consumption patterns and life styles characterized by wider sensitivity to energy efficiency. Against these ongoing trends, management has revised downward its estimates for gas demand: it is now assumed an almost flat demand environment in Italy and Europe up to 2017 compared to previous years’ assumptions made in the industrial plan 2013-2016 of a growth rate of 1.7-1.8%. It is worth mentioning that the projected levels of European gas demand in 2017 are significantly lower than the pre-crisis levels registered in 2008 as a result of weak fundamentals. As a result of those drivers, we expect that market conditions will remain unfavorable in the gas sector in Italy and Europe for the foreseeable future. Looking beyond, there is still little visibility about future developments in the European gas sector. However we believe that a number of factors may help rebalance the European gas market. Those include: macroeconomic stability, renewed focus by European agencies on the role of |
- 16 -
Contents
Eni in 2013 Business review / Gas & Power
| gas in electricity production as source of clean energy, possible reductions in the role of nuclear energy in crucial Countries like Japan, Taiwan and in Europe might support long-term trends in gas demand. In addition, we foresee continuing growing energy needs from the developing economies of China, India | and other emerging Countries
in East Asia, the Middle East and South America that will
be covered by worldwide LNG streams. On the supply side,
we expect a decline in production rates at European
fields thus increasing the need for gas import
requirements. Any combination of those possible developments |
could trigger a recovery in European gas prices and a market tightening. In such an environment, Eni’s competitive advantages given by a solid portfolio of gas contracts, access to infrastructures and storage capacity, innovative product offering and trading capabilities would drive significant upside potential. |
Gas sales: 2013 and outlook
Gas sales by market (bcm) |
2011 |
2012 |
2013 |
||||||
| ITALY | 34.68 | 34.78 | 35.86 | |||
| Wholesalers | 5.16 | 4.65 | 4.58 | |||
| Gas release | ||||||
| Italian gas exchange and spot markets | 5.24 | 7.52 | 10.68 | |||
| Industries | 7.21 | 6.93 | 6.07 | |||
| Medium-sized enterprises and services | 0.88 | 0.81 | 1.12 | |||
| Power generation | 4.31 | 2.55 | 2.11 | |||
| Residential | 5.67 | 5.89 | 5.37 | |||
| Own consumption | 6.21 | 6.43 | 5.93 | |||
| INTERNATIONAL SALES | 62.08 | 60.54 | 57.31 | |||
| Rest of Europe | 52.98 | 51.02 | 47.35 | |||
| Importers in Italy | 3.24 | 2.73 | 4.67 | |||
| European markets | 49.74 | 48.29 | 42.68 | |||
| Iberian Peninsula | 7.48 | 6.29 | 4.90 | |||
| Germany/Austria | 6.47 | 7.78 | 8.31 | |||
| Benelux | 13.84 | 10.31 | 8.68 | |||
| Hungary | 2.24 | 2.02 | 1.84 | |||
| UK/Northern Europe | 4.21 | 4.75 | 3.51 | |||
| Turkey | 6.86 | 7.22 | 6.73 | |||
| France | 7.01 | 8.36 | 7.73 | |||
| Other | 1.63 | 1.56 | 0.98 | |||
| Extra European markets | 6.24 | 6.79 | 7.35 | |||
| E&P in Europe and in the Gulf of Mexico | 2.86 | 2.73 | 2.61 | |||
| WORLDWIDE GAS SALES | 96.76 | 95.32 | 93.17 | |||
| In 2013, Eni’s gas
sales were 93.17 bcm, down by 2.3% from 2012. When
excluding the effect of the divestment of Galp, gas sales
were broadly in line with the previous year. Eni’s
sales in the domestic market increased by 1.08 bcm driven
by higher spot sales and by higher sales to importers in
Italy (up 1.94 bcm). This positive trend was more than
offset by lower volumes marketed in the main European
markets (down 5.61 bcm, particularly in Benelux, the
Iberian Peninsula and the UK) due to declining gas demand
and competitive pressure. Higher sales outside Europe (up
0.56 bcm) were driven by increasing LNG sales in the Far
East, particularly in Japan and Korea. Exploration &
Production sales in Northern Europe and in the United
States (2.61 bcm) declined by 0.12 bcm due to lower sales
in the United State. Looking forward, we expect flat to down gas |
sales across the plan period
due to weak demand, continuing oversupplies and strong
competition. Marketing strategy: Over the 2014-2017 period, Eni’s marketing
strategy will focus on offering valuable services and
other options to our clients across all our markets
leveraging our multi-Country approach, a new trading
platform, market expertise and a strong brand. |
the Italian market by
strengthening the customer base in the profitable
segments of retail consumers and small and medium
businesses, as well as expand our share in the retail
markets in Europe. Our efforts in the retail market will target to expand and to preserve the customer base in Italy and across our main European countries of presence. The main driver will be the development of the dual offer of gas and electricity, and the commercial penetration in France and the Benelux; for example we intend to launch the marketing of electricity in France. Value creation will be also supported by high standards of service, continuing innovation in processes, adoption of a wide range of sale channels to facilitate customers’ acquisition and retention with a strong focus on web channels, and economies of scale. |
- 17 -
Contents
Eni in 2013 Business review / Gas & Power
Supply
Supply of natural gas (bcm) |
2011 |
2012 |
2013 |
Change |
% Ch. |
||||||
| Italy | 7.22 | 7.55 | 7.15 | (0.40 | ) | (5.3 | ) | ||||||||
| Russia | 21.00 | 19.83 | 29.59 | 9.76 | 49.2 | ||||||||||
| Algeria (including LNG) | 13.94 | 14.45 | 9.31 | (5.14 | ) | (35.6 | ) | ||||||||
| Libya | 2.32 | 6.55 | 5.78 | (0.77 | ) | (11.8 | ) | ||||||||
| Netherlands | 11.02 | 11.97 | 13.06 | 1.09 | 9.1 | ||||||||||
| Norway | 12.30 | 12.13 | 9.16 | (2.97 | ) | (24.5 | ) | ||||||||
| United Kingdom | 3.57 | 3.20 | 3.04 | (0.16 | ) | (5.0 | ) | ||||||||
| Hungary | 0.61 | 0.61 | 0.48 | (0.13 | ) | (21.3 | ) | ||||||||
| Qatar (LNG) | 2.90 | 2.88 | 2.89 | 0.01 | 0.3 | ||||||||||
| Other supplies of natural gas | 6.16 | 5.43 | 3.63 | (1.80 | ) | (33.1 | ) | ||||||||
| Other supplies of LNG | 2.23 | 2.09 | 1.58 | (0.51 | ) | (24.4 | ) | ||||||||
| Outside Italy | 76.05 | 79.14 | 78.52 | (0.62 | ) | (0.8 | ) | ||||||||
| TOTAL SUPPLIES OF ENI’S CONSOLIDATED SUBSIDIARIES | 83.27 | 86.69 | 85.67 | (1.02 | ) | (1.2 | ) | ||||||||
| Offtake from (input to) storage | 1.79 | (1.35 | ) | (0.58 | ) | 0.77 | .. | ||||||||
| Network losses, measurement differences and other changes | (0.21 | ) | (0.28 | ) | (0.31 | ) | (0.03 | ) | (10.7 | ) | |||||
| AVAILABLE FOR SALE BY ENI’S CONSOLIDATED SUBSIDIARIES | 84.85 | 85.06 | 84.78 | (0.28 | ) | (0.3 | ) | ||||||||
| Available for sale by Eni’s affiliates | 9.05 | 7.53 | 5.78 | (1.75 | ) | (23.2 | ) | ||||||||
| E&P volumes | 2.86 | 2.73 | 2.61 | (0.12 | ) | (4.4 | ) | ||||||||
| TOTAL AVAILABLE FOR SALE | 96.76 | 95.32 | 93.17 | (2.15 | ) | (2.3 | ) | ||||||||
| LNG Eni operates in all phases of the LNG business: purchase, liquefaction, shipping, re-gasification and sale through operated activities or interests in joint ventures and associates. Eni’s presence in the business is |
tied to the Company’s plans to develop its large gas reserve base in Africa and elsewhere in the world. The LNG business has been marginally impacted by the economic downturn and oversupply affecting the European gas market, as well as by structural modifications in the US market. LNG flexibility allowed to adapt the | business model to the new
scenario and to increase the value of the commodity
entering in new markets. At present, we participate through our affiliates in a number of facilities located in Spain (re-gasification) and Egypt (liquefaction). The Company has also access to LNG supplies in |
- 18 -
Contents
Eni in 2013 Business review / Gas & Power
| Algeria and Qatar. Our main ongoing interest in the LNG business is the joint Pascagoula project with our Exploration & Production | business. The Pascagoula project is part of an upstream development project related to the construction of an LNG plant in Angola | designed to produce 5.2 mmtonnes of LNG (approximately 7.3 bcm/y) in order to monetize part of the Company’s gas reserves. |
Power generation
Power stations |
Installed capacity as of December 31, 2013 (a) |
Fully installed capacity (2017) (b) |
Effective/planned start-up |
Technology |
Fuel |
||||||
| Power stations | (MW) | (GW) | ||||||||
| Brindisi | 1,321 | 1.3 | 2006 | CCGT | Gas | |||||
| Ferrera Erbognone | 1,030 | 1.0 | 2004 | CCGT | Gas/syngas | |||||
| Livorno | 199 | 0.2 | 2000 | Power Station | Gas/fuel oil | |||||
| Mantova | 836 | 0.9 | 2005 | CCGT | Gas | |||||
| Ravenna | 972 | 1.0 | 2004 | CCGT | Gas | |||||
| Taranto (c) | 75 | 0.1 | 2000 | Power Station | Gas/fuel oil | |||||
| Ferrara | 841 | 0.8 | 2008 | CCGT | Gas | |||||
| Bolgiano | 30 | 0.1 | 2012 | Power Station | Gas | |||||
| Photovoltaic sites | 4 | 2011-2015 | Photovoltaic | Photovoltaic | ||||||
| 5,308 | 5.4 | |||||||||
| (a) Capacity available
after completion of dismantling of obsolete plants. (b) Installed and operational generation capacity. (c) In October 2013, divested to Raffineria di Taranto (R&M). |
| International transport Eni owns capacity entitlements in an extensive network of high-pressure backbones which |
enable the Company to ship
natural gas produced in Russia, Algeria, the North Sea,
including the Netherlands and Norway, and Libya in order
to serve Italy and the other European markets. The Company also participates to entities which manage the transport rights, the carriers, and |
to entities which own and operate the pipelines, the pipeline owners. This business has provided a stable stream of operating profits in the latest years due to the fact that the transport capacity of the gas pipelines is booked by the shippers on a long-term basis. |
Transport infrastructure |
| OUTSIDE ITALY | Lines |
Length of |
Diameter |
Transport capacity
(a) |
Transit capacity (b) |
Compression stations |
||||||
| TTPC (c) (Oued Saf Saf-Cap Bon) | 2 lines of km 370 | 740 | 48 | 34.0 | 33.2 | 5 | ||||||
| TMPC (c) (Cap Bon-Mazara del Vallo) | 5 lines of km 155 | 775 | 20/26 | 33.5 | 33.5 | |||||||
| GreenStream (Mellitah-Gela) | 1 line of km 520 | 520 | 32 | 8.0 | 8.0 | 1 | ||||||
| Blue Stream (Beregovaya-Samsun) | 2 lines of km 387 | 774 | 24 | 16.0 | 16.0 | 1 | ||||||
| (a) Includes both transit
capacity and volumes of natural gas destined to local
markets and withdrawn at various points along the
pipeline. (b) The maximum volume of natural gas which is input at various entry points along the pipeline and transported to the next pipeline. (c) Entirely owned by an affiliate of the Tunisian State. |
- 19 -
Contents
Eni in 2013 Business review / Refining & Marketing
Key performance indicators |
2011 |
2012 |
2013 |
||||||
| Employees injury frequency rate | (No. of accidents per million of worked hours) | 1.96 | 1.08 | 0.31 | |||||||
| Contractors injury frequency rate | 3.21 | 2.32 | 1.68 | ||||||||
| Net sales from operations (a) | (euro million) | 51,219 | 62,656 | 57,329 | |||||||
| Operating profit | (273 | ) | (1,296 | ) | (1,517 | ) | |||||
| Adjusted operating profit | (539 | ) | (321 | ) | (482 | ) | |||||
| Adjusted net profit | (264 | ) | (179 | ) | (232 | ) | |||||
| Capital expenditure | 866 | 842 | 619 | ||||||||
| Refinery throughputs on own account | (mmtonnes) | 31.96 | 30.01 | 27.38 | |||||||
| Conversion index | (%) | 61 | 61 | 62 | |||||||
| Balanced capacity of refineries | (kbbl/d) | 767 | 767 | 787 | |||||||
| Retail sales of petroleum products in Europe | (mmtonnes) | 11.37 | 10.87 | 9.69 | |||||||
| Service stations in Europe at year end | (units) | 6,287 | 6,384 | 6,386 | |||||||
| Average throughput per service station in Europe | (kliters) | 2,206 | 2,064 | 1,828 | |||||||
| Retail efficiency index | (%) | 1.50 | 1.48 | 1.28 | |||||||
| Employees at year end | (number) | 7,591 | 7,125 | 6,942 | |||||||
| Direct GHG emissions | (mmtonnes CO2 eq) | 7.23 | 6.03 | 5.18 | |||||||
| SOx emissions (sulphur oxide) | (ktonnes SO2 eq) | 23.07 | 16.99 | 10.80 | |||||||
| NOx emissions (nitrogen oxide) | (ktonnes NO2 eq) | 6.74 | 5.87 | 4.51 | |||||||
| Water consumption rate (refineries)/refinery throughputs | (cm/tonnes) | 30.98 | 25.43 | 19.98 | |||||||
| Biofuels marketed | (mmtonnes) | 13.26 | 14.83 | 10.84 | |||||||
| Customer satisfaction index | (likert scale) | 7.74 | 7.90 | 8.10 | |||||||
| (a) Before elimination of intragroup sales. |
2013 Highlights
| Financial
and operating results > The 2013 HSE performance was solid with all KPI improving sequentially: (i) the injury frequency rates down by 71.4% for employees and by 27.5% for contractors; (ii) emissions of GHG, SOx and NOx were lower due to energy saving measures and increasing use of natural gas to replace fuel oil; (iii) the water consumption rate down by 21%. > The net loss was sharply lower at euro 232 million, down by 30%, caused by plunging refining margins due to weak demand and overcapacity, the effects of which were exacerbated by shrinking price differentials between light and heavy crudes due to lower heavy crudes supplies in the Mediterranean area. The negative trading environment was partly counteracted by efficiency and optimization gains. Marketing results declined due to lower sales related to the |
declining demand for fuels
and mounting competitive pressure. > 2013 refining throughputs were 27.38 mmtonnes, down by 8.8% from 2012. In Italy, processed volumes decreased (down 9.4%) due to the planned shutdown of the Venice Refinery following the Green Refinery project and in all the remaining plants due to their downsizing on the back of declining refining margins. Outside Italy, Eni’s refining throughputs decreased by 5.9% in particular in the Czech Republic. > In 2013, retail sales in Italy of 6.64 mmtonnes decreased by 15.2% from 2012. This decline was driven by the current economic downturn and increased competitive pressure. In 2013 Eni’s average retail market share was 27.5% decreasing by 3.7 percentage points from 2012 when sales volumes benefited from the effect |
of a promotional campaign
made during the summer weekends. > Retail sales in the Rest of Europe of 3.05 mmtonnes are substantially unchanged from 2012 (up 0.3%) due to higher volumes marketed in Germany and Austria, offset by lower sales in the Czech Republic and Hungary. > Capital expenditure amounting to euro 619 million related mainly to refining, supply and logistics (euro 444 million) to improve flexibility and yields, in particular at the Sannazzaro Refinery, and marketing activities for upgrading the retail distribution network (euro 175 million). > In 2013 total expenditure in R&D in the Refining & Marketing Division amounted to approximately euro 33 million, net of general and administrative costs. In the year 6 patent applications were filed. |
- 20 -
Contents
Eni in 2013 Business review / Refining & Marketing
| Strategies Eni’s
Refining & Marketing segment engages in the supply of
crude oil, refining and marketing of refined products,
trading and shipping of crude oil and refined products
primarily in Italy and in Central-Eastern Europe. In
Italy, Eni is the largest refining and marketing operator
in terms of capacity and market share. The Company’s
operations are fully integrated through refining, supply,
trading, logistics and marketing so as to maximize cost
efficiencies and effectiveness of operations. |
Over the next four years of
the industrial plan, management does not see any
meaningful improvement in the trading environment as we
expect that excess capacity, weak demand and continuing
competitive pressure continue to hurt our profitability.
The ongoing economic downturn is anticipated to weigh on
the recovery of demand for fuels, while high costs of the
crude oil feedstock and energy utilities will continue
squeezing refining margins. On the supply side, it is
unlikely that ongoing capacity rationalization will help
to absorb product surpluses on the short-term. Also retail and wholesale marketing activities of refined products will be affected by sluggish demand and product oversupply that are expected to trigger pricing competition. Our priority in the Refining & Marketing segment is to restore profitability against the backdrop of weak industry fundamentals. We plan to further reduce and restructure refining capacity in order to reduce our exposure to the commodity risk and to implement a number of efficiency and cost reduction initiatives, energy saving and optimization of plant operations to drive margin expansions. Our strategic guidelines are: • To reduce refining capacity. • To make selective capital projects for developing bio-fuels, upgrading refinery |
complexity and the safety
and reliability of our assets. • To enhance the profitability of our retail network by closing down marginal outlets and continuing upgrading of our modern and most efficient service stations. • To improve service quality and client retention and non-oil profit contribution taking into account a weak outlook for fuel consumption. • To grow selectively in target European markets and divest marginal assets. In the four-year period,
management plans to make capital expenditure amounting to
euro 2.5 billion carefully selecting capital projects.
The main expenditure will regard the conversion of the
Venice refinery into a biofuel plant, continuous refinery
upgrade as well as to improve plant efficiency and
reliability. Retail activities will attract some 25% of
the planned expenditure which will be mainly directed to
upgrade and modernize our service stations in Italy and
in selected European Countries, and to complete the
network rebranding. |
Refining
- 21 -
Contents
Eni in 2013 Business review / Refining & Marketing
| > Planned actions In 2013, Eni’s refining system had total refinery capacity (balanced with conversion capacity) of approximately 39.3 mmtonnes (equal to 787 kbbl/d) and a conversion index of 62%. Conversion index is a measure of refinery complexity. The higher is the index, the wider is the spectrum of crude qualities and feedstock that a refinery is able to process thus enabling it to benefit from the cost economies which the Company generally expects to achieve as certain qualities of crude (particularly the heavy ones) may be traded at discount with reference to the light crude Brent benchmark. Eni’s five 100% owned refineries have balanced capacity of 28.7 mmtonnes (equal to 574 kbbl/d), with a 64% conversion index. In 2013, Eni’s refineries throughputs in Italy and outside Italy was 27.38 mmtonnes. Against the backdrop of a weak refining scenario, management has progressively reduced the Company’s exposure to the commodity risk by cutting refining capacity by around 13% and we are planning to achieve a further 22% reduction along the plan period by closing marginal lines and through the full conversion of the Venice refinery into a facility which will be able to process biofuels. In addition we will use all available levers to improve operations efficiency and profitability by: • pursuing better integration of refineries and logistic assets and seeking synergies with the Exploration & Production segment to monetize equity crudes and proprietary technologies; • maximizing refinery flexibility to quickly respond to market changes and exploiting the availability of any crude qualities; • achieving energy efficiency initiatives; • rationalizing logistic costs and implementing other cost-saving measures involving maintenance, labor and other fixed plant expenses; • strictly selecting capital expenditure; and • boosting margins leveraging on risk management activities. > Our assets ITALY |
and Switzerland. The high
flexibility and conversion capacity of this refinery
allows it to process a wide range of feedstock. From a
logistical standpoint this refinery is located on the
route of the Central Europe Pipeline, which links the
Genoa terminal with French-speaking Switzerland. This
refinery contains two primary distillation plants and
relevant facilities, including three desulphurization
units. Conversion is obtained through a fluid catalytic
cracker (FCC), two hydrocrackers (HdC), the last unit
entered into operations in June 2009, which enables
middle distillate conversion and a visbreaking thermal
conversion unit with a gasification facility loaded with
heavy residue from visbreaking unit (tar) to produce
syn-gas to feed the nearby EniPower power plant at
Ferrera Erbognone. In 2013 a new conversion unit started
operations based on the proprietary EST technology (Eni
Slurry Technology). This conversion plant with a 23
kbbl/d capacity is designed to process extra heavy crude
with high sulphur content yielding a high rate of middle
distillates and reduced fuel oil. Furthermore, Eni is
developing a conversion technology called Slurry Dual
Catalyst (an evolution of EST), based on a combination of
two nano-catalysts, which could lead to a breakthrough in
the EST process, improving efficiency and product
quality. Another important project is a proprietary process which is being tested to economically produce hydrogen on the basis of a SCT-CPO (Short Contact Time-Catalytic Partial Oxidation) reforming technology, which may be able to produce synthetic gas (carbon monoxide and hydrogen) from gaseous and liquid hydrocarbons (also derived from biomass). Taranto Refinery has balanced primary refining capacity of 120 kbbl/d and a conversion index of 72%. This refinery can process a wide range of crudes and other feedstock. It processes most of the oil produced in Eni’s Val d’Agri fields (2.87 mmtonnes in 2013) and transported to Taranto through the Monte Alpi pipeline. Complex cycles are achieved through a Residue Hydroconversion Unit (RHU) - Hydrocracking process and a "Two Stage" Visbreaking - Thermal Cracking unit. Gela Refinery has balanced primary refining capacity of 100 kbbl/d and a conversion index of 142%. Gela refinery represents an upstream integrated pole with the production of heavy crude oil obtained from nearby Eni fields in Sicily, while downstream it is integrated with Eni’s nearby petrochemical plants. Located on the Southern coast of Sicily, it mainly produces fuels for |
automotive use and other
feedstock. Its high conversion level is ensured by a
catalytic cracking unit integrated with go finer for
feedstock upgrading and two coking plants enabling
conversion of heavy residues topping or vacuum residues.
The power plant of this refinery also contains modern
fume treatment plants (so-called SNOx) which
allow full compliance with the tightest environmental
standards, removing almost all sulphur and nitrogen
composites coming from the coke burning-process. The Gela
refinery is undergoing a revamping plan which is designed
to increase the production of gasoil, to convert the go
finer unit into a hydrocracking facility and to shut down
the production of gasoline and chemical feedstock with
the aim of restoring the plant profitability. The project
will also involve the closure of Eni’s adjacent
polyethylene production. OUTSIDE ITALY > Operational efficiency and |
- 22 -
Contents
Eni in 2013 Business review / Refining & Marketing
| Logistics Eni is a primary
operator in storage and transport of petroleum products
in Italy with its logistical integrated infrastructure
consisting of 18 directly managed storage sites and a
network of petroleum product pipelines for products sale
and storage of LPG and crude. Located in the Vado
Ligure-Genova (Petrolig), Arquata Scrivia (Sigemi),
Venice (Petroven), Ravenna (Petra) and Trieste (DCT)
sites, they reduce logistic costs, and increase
efficiency. Marketing Eni is a leader in the Italian retail market of refined products with a 27.5% market share, down by 3.7 percentage points from 2012 when sales volumes benefited of the effect of a promotional campaign made during the summer weekends ("riparti con eni"). In the Marketing activity management intends to
preserve profitability by: |
marginal service stations
and continuously upgrading our best plants and developing
new revenues streams from non oil activities and other
services to the driver; • preserving our customer base by effective marketing actions, fidelity cards, cross initiatives with other operators (food distributors, telecoms, etc.), rolling out our "eni" brand and service excellence; • boosting margins by increasing the number of fully automated outlets; and • selectively growing our market share in European markets and divesting from marginal areas. Outside Italy, we intend to selectively develop our activities. In 2013, Eni’s retail network in Italy consisted of 4,762 service stations, 18 stations less than at December 31, 2012 (4,780 service stations), resulting from the negative balance of the closing of service stations with low throughput (51 units), the release of one motorway concession, partially offset by the positive contribution of acquisitions/releases of lease concessions (34 units). In 2013, retail sales in Italy of 6.64 mmtonnes decreased by approximately 1.19 mmtonnes or 15.2% from 2012, driven by lower consumption of gasoil and gasoline, in particular at highway service stations reflecting the decline in freight transportation and high competitive pressure. Average |
gasoline and gasoil
throughputs (1,657 kliters) decreased by approximately
318 kliters from 2012.
Co-marketing |
- 23 -
Contents
Eni in 2013 Business review / Refining & Marketing
| > Retail - outside Italy Eni’s strategy in the rest of Europe is focused on selectively growing its market share, particularly in Germany, Austria and France leveraging on the synergies ensured by the proximity of these markets to Eni’s production and logistic facilities. We plan to divest from other area which are lacking growth and profitability prospects. In 2013, retail sales in the Rest of Europe of 3.05 mmtonnes registered a slight increase compared to 2012 (up by 0.3% or 10 ktonnes). Higher volumes marketed in Germany and Austria were almost completely offset by lower sales in the Czech Republic and Hungary. At December 31, 2013 Eni’s retail network in the Rest of Europe consisted of 1,624 service stations, with an increase of 20 units from December 31, 2012 (1,604 service stations). The key markets of Eni’s presence are: Austria with a 11.9% market share, Hungary with 11.7%, Czech Republic with 9.8%, Slovakia with 9.7%, Switzerland with 7.3% and Germany with a 3.2% on national basis. > Non-oil In 2013, Eni continued its engagement in enriching the
offer of non-oil products and services in Eni’s
service stations in Italy by developing the following
franchised chains: |
|
|||
| > Wholesale and other businesses Fuels Eni markets gasoline and other fuels on the wholesale market in Italy, including diesel fuel for automotive use and for heating purposes, for agricultural vehicles and for vessels and fuel oil. Major customers are resellers, agricultural users, manufacturing industries, public utilities and transports, as well as final users (transporters, condominiums, farmers, fishers, etc.). Eni provides its customers with its expertise in the area of fuels with a wide range of products that cover all market requirements. Along with traditional products provided with the high quality Eni standard, there is also an innovative low environmental impact line, which includes AdvanceDiesel especially targeted for heavy duty public and private transports. Customer care and product distribution is supported by a widespread commercial and logistical organization presence all over Italy and articulated in local marketing offices and a network of agents and distributors. In 2013, wholesale sales in Italy (8.37 mmtonnes) declined by approximately 253 ktonnes, or 2.9%, mainly due to declining sales of bunkering and bitumen due to lower demand, almost completely offset by higher sales of fuel oil and minor products. LPG |
2013 amounted to 510 ktonnes
of which 398 ktonnes in Ecuador where LPG market share is
around 37.8%. Lubricants Oxygenates |
|||
- 24 -
Contents
Eni in 2013 Business review / Versalis
Key performance indicators |
2011 |
2012 |
2013 |
||||||
| Employees injury frequency rate | (No. of accidents per million of worked hours) | 1.47 | 0.76 | 0.76 | |||||||
| Contractors injury frequency rate | 4.60 | 1.67 | 0.30 | ||||||||
| Net sales from operations (a) | (euro million) | 6,491 | 6,418 | 5,859 | |||||||
| Intermediates | 2,987 | 3,050 | 2,709 | ||||||||
| Polymers | 3,299 | 3,188 | 2,933 | ||||||||
| Other sales | 205 | 180 | 217 | ||||||||
| Operating profit | (424 | ) | (681 | ) | (725 | ) | |||||
| Adjusted operating profit | (273 | ) | (483 | ) | (386 | ) | |||||
| Adjusted net profit | (206 | ) | (395 | ) | (338 | ) | |||||
| Capital expenditure | 216 | 172 | 314 | ||||||||
| Production | (ktonnes) | 6,245 | 6,090 | 5,817 | |||||||
| Sales of petrochemical products | 4,040 | 3,953 | 3,785 | ||||||||
| Average plant utilization rate | (%) | 65.3 | 66.7 | 65.3 | |||||||
| Employees at year end | (number) | 5,804 | 5,668 | 5,708 | |||||||
| Direct GHG emissions | (mmtonnes CO2 eq) | 4.12 | 3.69 | 3.66 | |||||||
| NMVOC (Non-Methane Volatile Organic Compound) emissions | (ktonnes) | 4.18 | 4.40 | 3.93 | |||||||
| SOx emissions (sulphur oxide) | (ktonnes SO2 eq) | 3.17 | 2.19 | 1.53 | |||||||
| NOx emissions (nitrogen oxide) | (ktonnes NO2 eq) | 4.14 | 3.43 | 3.29 | |||||||
| Recycled/reused water | (%) | 81.9 | 81.6 | 86.2 | |||||||
| (a) Before elimination of intragroup sales. |
2013 Highlights
| Performance
of the year > In 2013, the contractors injury frequency rate was down by 81.9% from 2012. The employees injury frequency rate remained unchanged. > In 2013 emissions of Greenhouse gas improved from 2012 particularly at the Mantova site for NOx, and NMVOC as well as at the Dunkerque site for SOx and NMVOC. Recycled/reused water rate improved, up to 86.2%. > In 2013 the adjusted net loss of euro 338 million improved by euro 57 million from 2012. > Sales of petrochemical products were 3,785 ktonnes, down by 168 ktonnes, or 4.2% from 2012, due to lower commodity demand. > Production volumes were 5,817 ktonnes, decreasing by 273 ktonnes, or 4.5% from 2012, due to declining demand in all businesses. The steepest decline was reported in elastomers and polyethylene. > In 2013 overall expenditure in R&D amounted to approximately euro 39 million in line with the previous year. 10 patent applications were filed, one of which jointly with E&P. |
Business
development and sustainability initiatives > As part of the expansion strategy in the bioplastic sector and diversification from the commodity business, Versalis signed strategic partnerships with major operators in the field of biotechnology and rubber: • with Genomatica, for the establishment of a technology joint venture for bio-based butadiene production from non-food biomass. The resulting process will be licensed across Europe, Asia and Africa by the newly-created joint venture. Versalis will invest over $20 million in the development of process technologies and aims to be the first to license the process and build commercial plants; • with Pirelli, a Memorandum of Understanding for joint research project for the use of guayule-based natural rubber in tyre production; • with Yulex Corporation, an agricultural-based biomaterials company, for a project of guayule-based biorubber |
production and a launch of
industrial production complex in Southern Europe. The
partnership will cover the entire manufacturing chain.
Versalis will manufacture materials for various
applications, with a final goal of the optimization of
the productive process in the tyre industry; • with South Korean company Lotte Chemical, Versalis established a 50:50 joint venture, while with Malaysian company Petronas, Versalis signed a shareholders agreement. The agreements concern the development of joint production of styrene and elastomers, as part of the expansion process in the growing South-East Asian markets; • with Neville Venture, Versalis signed an agreement of strategic partnership for the production of hydrocarbon resins at the Priolo plant and finalized a license agreement related to the resins production for various applications such as adhesives, inks, coatings and rubber; |
- 25 -
Contents
Eni in 2013 Business review / Versalis
| • with Elevance Renewable Sciences Inc., a United States chemical company, specialized in production of chemicals from vegetable oils, with a significant value added, Versalis signed a Memorandum of Understanding (MoU) for establishing a strategic partnership, in order to jointly develop and scale a new technology for a production from vegetable oils, aiming at developing and scaling of new catalysts. The market applications of the future production will be specialties with a significant added | value such as personal care
products, detergents and cleaners, bio-lubricants and
oilfield chemicals. > In the field of Green Chemistry, Versalis continued with the requalification of the hub of Porto Torres, in order to replace the traditional activities of the site with activities characterized by significant perspectives of future growth, by realizing the products with an elevated biodegradability and/or produced from row materials obtained from renewable sources. In 2013, Versalis completed the initiatives |
of restructuration and
reorganization of the distribution network and storage at
the Matrìca plant. > In February 2014, Versalis reached an important agreement on the project of transformation and relaunch of the Porto Marghera site to redesign production facilities and regain competitiveness. Versalis expects to invest euro 200 million in Porto Marghera focused on the optimization and reorganization of cracker utilities, with significant energy savings, and on the new initiative of Green Chemistry. |
| Strategies The chemical
industry is subject to fluctuations in demand in response
to macroeconomic cycles, leading to volatile results of
operations and cash flow. It is a highly competitive
industry due to lack of entry barriers, product
commoditization and excess capacity, which may exacerbate
the impact of any demand downturns on the results
reported by our Chemicals business. Eni’s chemical
operations have been accumulating operating losses and
negative cash flow over the latest years driven by
structural headwinds in the industry and increasing
competition from Asian companies and the petrochemical
arm of national oil companies based in the Middle East
which can leverage on long-term competitive advantages in
terms of lower operating costs and cheaper feedstock
costs. |
Business areas > Intermediates > Polymers |
companies that transform it
into a range of finished goods; (ii) Styrenics, which are
polymeric materials based on styrenes that are used in a
very large number of sectors through a range of
transformation technologies. The most common applications
are for industrial packaging and in the food industry,
small and large electrical appliances, building
isolation, electrical and electronic devices, household
appliances, car components and toys; (iii) Elastomers,
which are polymers characterized by high elasticity that
allow them to regain their original shape even after
having been subjected to extensive deformation. Versalis
has a leading position in this sector and produces a wide
range of products for the following sectors: tyres,
footwear, adhesives, building components, pipes,
electrical cables, car components and sealings, household
appliances; they can be used as modifiers for plastics
and bitumens, as additives for lubricating oils (solid
elastomers); paper coating and saturation, carpet
backing, molded foams, adhesives (synthetic latex).
Versalis is one of the world’s major producers of
elastomers and synthetic latex. Polymers revenues (euro 2,933 million) decreased by euro 255 million from 2012, or by 8%, due to average unit prices decreasing by 19% and lower elastomers sale volumes (down by 9.7%) due to the significant decrease in demand from the tyre and automotive industry. This negative performance was partly offset by higher average prices of styrene (up 7.5%) and polyethylene (up 1%) mainly registered in the last part of 2013. Polymer production (2,356 ktonnes) decreased by 140 ktonnes from 2012 (down 5.6%), due mainly to a decline in production at the Ravenna plant and at English sites (Hythe and Grangemouth) reflecting market dynamics. |
- 26 -
Contents
Eni in 2013 Business review / Engineering & Construction
Key performance indicators |
2011 |
2012 |
2013 |
||||||
| Employees injury frequency rate | (No. of accidents per million of worked hours) | 0.44 | 0.54 | 0.46 | |||||
| Contractors injury frequency rate | 0.21 | 0.17 | 0.10 | ||||||
| Fatality index | (No. of fatalities per 100 per million of worked hours) | 1.82 | 0.93 | 2.01 | |||||
| Net sales from operations (a) | (euro million) | 11,834 | 12,771 | 11,611 | |||||
| Operating profit | 1,422 | 1,442 | (83 | ) | |||||
| Adjusted operating profit | 1,443 | 1,474 | (84 | ) | |||||
| Adjusted net profit | 1,098 | 1,111 | (253 | ) | |||||
| Capital expenditure | 1,090 | 1,011 | 902 | ||||||
| Orders acquired | (euro million) | 12,505 | 13,391 | 10,653 | |||||
| Order backlog | 20,417 | 19,739 | 17,514 | ||||||
| Employees at year end | (number) | 38,561 | 43,387 | 47,209 | |||||
| Employees outside Italy rate | (%) | 86.5 | 88.1 | 89.1 | |||||
| Local managers rate | 43.0 | 41.3 | 41.3 | ||||||
| Local procurement rate | 56.4 | 51.8 | 51.1 | ||||||
| Healthcare expenditure | (euro million) | 32 | 21 | 22 | |||||
| Security expenditure | 51 | 82 | 85 | ||||||
| Direct GHG emissions | (mmtonnes CO2 eq) | 1.32 | 1.54 | 1.54 | |||||
| (a) Before elimination of intragroup sales. |
2013 Highlights
| Performance
of the year > In 2013 the injury frequency rate for employees and contractors declined from 2012 (by 14.8% and 41.1%, respectively). In 2013, Eni continued its commitment in education and training for employees and contractors in the field of health and security, with the initiatives such as "Leadership in Health and Safety", "Working at height and Confined Space" as well as the use of dedicated HSE training portal and individual protection equipment. > In 2013 procurement amounted to euro 9,066 million, 51.1% of which referred to local procurement. |
>
Health and safety expenditure registered an increase
(totally up by 4% from 2012). In particular, the
expenditure for individual protection equipment increased
by 30% and the expenditure for safety training increased
by 10%. > In 2013, adjusted net loss amounted to euro 253 million (down by euro 1,264 million from the adjusted net profit of euro 1,111 million reported in 2012). This result reflected operating and marketing difficulties encountered in the first half of 2013, which led management to revise the profit margin estimates for important orders, in particular for the construction of onshore industrial complexes. |
>
Orders acquired amounted to euro 10,653 million (euro
13,391 million in 2012) 94% of which relating to the
works outside Italy, while 14% orders from Eni Companies. > Order backlog amounted to euro 17,514 million at December 31, 2013 (euro 19,739 million at December 31, 2012), of which euro 9,244 million to be fulfilled within 2014. > In 2013 overall expenditure in R&D amounted approximately to euro 15 million, in line with the previous year. 14 patent applications were filed. > Capital expenditure amounted to euro 902 million (euro 1,011 million in 2012), mainly regarded the upgrading of the drilling and construction fleet. |
| Strategies Through Saipem, a subsidiary listed on the Italian Stock Exchange (Eni’s interest is 42.91%), and Saipem’s controlled entities, Eni engages in engineering and construction, as well as offshore and onshore drilling targeting the oil&gas industry. In those markets Saipem boasts a |
strong competitive position, particularly in executing large, complex EPC contracts for the construction of offshore and onshore facilities and systems to develop hydrocarbons reserves as well as LNG, refining and petrochemicals plants, pipeline layering and offshore and onshore drilling services. The Company owes its market position to technological and operational | skills which we believe are acknowledged in the marketplace due to its capabilities to operate in frontier areas and complex ecosystems, efficiently and effectively managing large projects, engineering competencies and availability of technologically-advanced vessels and rigs which have been upgraded in recent years through a large capital expenditure plan. |
- 27 -
Contents
Eni in 2013 Business review / Engineering & Construction
| Despite the above mentioned
factors, the Engineering & Construction segment faced
sharply lower profitability in 2013 compared to 2012 due
to a slowdown in business activities and large losses
which were recorded at certain contract works due to a
worsening trading environment and customer relationship
and management issues. The sharp contraction in
profitability negatively impacted the share performance
of our listed subsidiary Saipem. The business underwent
profound operational and organizational changes, a more
selective commercial strategy was adopted and a new
management team was put in place. We believe that 2014 will be a transitional year with a recovery in profitability, the degree of which relies upon effective execution of operational and commercial activities at low-margin contracts still present in the current portfolio, in addition to the speed at which bids underway will be awarded. Looking forward, management believes that the business remains well positioned to return to revenue and profitability growth in the medium term leveraging on technologically-advanced assets and competencies in engineering and project management and execution of large and complex oil and gas development. > Engineering & Construction
Offshore |
and Australia. Orders
acquired amounted to euro 5,777 million (euro 7,477
million in 2012). Among the main orders acquired in 2013 were: (i) EPCI contract on behalf of Total Upstream Nigeria Ltd, for the development of the Egina field in Nigeria regarding engineering, procurement, fabrication, installation and pre-commissioning of subsea pipelines for oil and gas production and gas export, flexible jumpers and umbilicals; (ii) a contract on behalf of Burullus Gas Co for the development of the West Delta Deep Marine - Phase IXa Project, for the installation of subsea facilities. > Engineering & Construction
Onshore |
> Offshore drilling Saipem is the only engineering and construction contractor that provides also offshore and onshore drilling services to oil companies. In the offshore drilling segment Saipem mainly operates in West Africa, the North Sea, Mediterranean Sea and the Middle East and boasts significant market positions in the most complex segments of deep and ultra-deep offshore, leveraging on the outstanding technical features of its drilling platforms and vessels, capable of drilling exploration and development wells at a maximum depth of 9,200 meters. In parallel, investments are ongoing to renew and to keep up the production capacity of other fleet equipment (upgrade equipment to the characteristics of projects or to clients’ needs and purchase of support equipment). In 2013 revenues amounted to euro 1,177 million, increasing by 8.1% from 2012. Revenues deriving from the entry in full activity of the semisubmersible rigs Scarabeo 8, Scarabeo 3 and Scarabeo 6 and the beginning of operations of Ocean Spur vessels. Orders acquired amounted to euro 1,401 million (euro 1,025 million in 2012). Among the main orders acquired were: (i) five-year contract extension with Eni for the charter of the drillship Saipem 10000 starting from the third quarter of 2014 for worldwide drilling activity operations; (ii) one-year contract extension on behalf of IEOC, for the utilization of the semi-submersible Scarabeo 4 in Egypt. > Onshore drilling In 2013 revenues amounted to euro 721 million,
slightly decreasing from 2012. |
- 28 -
Contents
- 29 -
Contents
Eni in 2013 Group results for the year
Group results for the year
| Trading environment In
2013 the Group faced strong headwinds in any of its
reference markets. In the Exploration & Production
Division, production was negatively impacted by the
resurgence of internal conflict in Libya and other
geopolitical events, as well as technical issues at the
giant Kashagan oil field. Oil and gas realizations in
dollar terms declined due to a reduced Brent price, down
by 2.6% from 2012. |
purchase take-or-pay
contracts and reduced sales opportunities. Spot prices in
Europe increased by 12.2% from 2012, even if this was not
reflected in gas margins because of higher oil-linked
supply costs. We recorded sharply lower margins in the
production and sale of electricity due to oversupply and
increasing competition from more competitive sources. Results of 2013 were affected by the appreciation of the euro against the dollar (up by 3.3% over the year). Finally, Saipem reported a net loss due to customer relationship and management issues which translated into large contract losses. 2013 results In 2013, net profit attributable to Eni’s shareholders was euro 5,160 million. In spite of the challenging market conditions which impacted all of Eni’s business segments, the 2013 net profit represented a 23% increase driven by the portfolio rationalization permitted by the recent discoveries that has enabled us to anticipate the monetization of results and cash. We divested a 20% interest in the Mozambique |
discovery to CNPC for a cash
consideration of euro 3.4 billion and a net gain recorded
in profit of approximately euro 3 billion. We defined a
deal with Gazprom to dispose our 60% stake in Artic
Russia for a total consideration of euro 2.2 billion
which was cashed-in in January 2014, with the profit for
2013 benefiting of a fair-value revaluation of euro 1.7
billion. Adjusted net profit attributable to Eni’s shareholders amounted to euro 4,433 million, a decrease of euro 2,697 million, or 37.8% from 2012. Excluding Snam’s contribution to continuing operations in 2012, the decline of 2013 adjusted net profit was 35%. The decline reflected the lower performance incurred by all the Divisions reflecting the above mentioned drivers. Adjusted net profit was calculated by excluding an inventory holding loss which amounted to euro 438 million and special gains of euro 1,165 million, net of exchange rate differences and exchange rate derivative instruments (euro 195 million) reclassified in operating profit, as they mainly related to derivative transactions entered into to manage exposure to the exchange rate risk implicit in commodity pricing formulas, resulting in a net negative adjustment of euro 727 million. |
- 30 -
Contents
Eni in 2013 Group results for the year
| Adjusted net profit (euro million) |
| 2011 | 2012 | 2013 | Change | % Ch. | |||||||||||
| 6,902 | Net profit attributable to Eni's shareholders - continuing operations | 4,200 | 5,160 | 960 | 22.9 | ||||||||||
| (724 | ) | Exclusion of inventory holding (gains) losses | (23 | ) | 438 | ||||||||||
| 760 | Exclusion of special items | 2,953 | (1,165 | ) | |||||||||||
| of which: | |||||||||||||||
| 69 | - non-recurring items | ||||||||||||||
| 691 | - other special items | 2,953 | (1,165 | ) | |||||||||||
| 6,938 | Adjusted net profit attributable to Eni's shareholders - continuing operations (a) | 7,130 | 4,433 | (2,697 | ) | (37.8 | ) | ||||||||
| (a) For a detailed explanation of adjusted operating profit and net profit see paragraph "Reconciliation of reported operating and net profit to results on an adjusted basis". |
| Special
charges in operating profit from continuing
operations were euro 3,046 million: i) impairment losses of euro 2,400 million were recorded to write down the book values of property, plant and equipment, goodwill and other intangible assets to their lower values in-use in the gas marketing (euro 1,685 million) and power generation business and in the refining businesses (euro 633 million). In performing the impairment review, management assumed a reduced profitability outlook in these businesses driven by structural headwinds in demand, excess capacity and oversupply, rising competitive |
pressure and other cost
disadvantages; ii) risk provisions of euro 334 million were recorded in connection with an onerous contract in the gas business; iii) provisions for redundancy incentives (euro 270 million) and environmental provisions (euro 205 million); iv) the effects of fair-value evaluation of certain commodity derivatives contracts lacking the formal criteria to be accounted as hedges under IFRS (a loss of euro 315 million); v) net gains on the divestment of marginal properties in the Exploration & Production Division (euro 283 million). |
Special
items excluded from adjusted net profit mainly
related to the gains on the divestment of an interest in
the Mozambique project (euro 2,994 million net of the
related tax effect) and on the fair-value revaluation of
Eni’s stake in the joint venture Artic Russia (euro
1,682 million). These positives were partly offset by a write-off of deferred tax assets which were assessed to be no more recoverable due to the projections of lower earnings before income taxes at Italian activities (euro 954 million) and the renewal of certain petroleum contracts (euro 490 million). The breakdown of adjusted net profit by Division is shown in the table below: |
| Adjusted net profit by Division (euro million) |
| 2011 | 2012 | 2013 | Change | % Ch. | |||||||||||
| 6,865 | Exploration & Production | 7,426 | 5,952 | (1,474 | ) | (19.8 | ) | ||||||||
| 252 | Gas & Power | 473 | (246 | ) | (719 | ) | .. | ||||||||
| (264 | ) | Refining & Marketing | (179 | ) | (232 | ) | (53 | ) | (29.6 | ) | |||||
| (206 | ) | Versalis | (395 | ) | (338 | ) | 57 | 14.4 | |||||||
| 1,098 | Engineering & Construction | 1,111 | (253 | ) | (1,364 | ) | .. | ||||||||
| (225 | ) | Other activities | (247 | ) | (205 | ) | 42 | 17.0 | |||||||
| (753 | ) | Corporate and financial companies | (976 | ) | (472 | ) | 504 | 51.6 | |||||||
| 1,146 | Impact of unrealized intragroup profit elimination (a) | 661 | 39 | (622 | ) | ||||||||||
| 7,913 | Adjusted net profit - continuing operations | 7,874 | 4,245 | (3,629 | ) | (46.1 | ) | ||||||||
| of which attributable to: | |||||||||||||||
| 975 | - non-controlling interest | 744 | (188 | ) | (932 | ) | .. | ||||||||
| 6,938 | - Eni’s shareholders | 7,130 | 4,433 | (2,697 | ) | (37.8 | ) | ||||||||
| (a) This item concerned mainly intragroup sales of commodities, services and capital goods recorded in the assets of the purchasing business segment as of end period. |
| > Capital expenditure In 2013, capital expenditure amounted to euro 12,750 million (euro 12,761 million in 2012) relating to: • development activities deployed mainly in Norway, the United States, Angola, Congo, Italy, Nigeria, Kazakhstan, Egypt and the UK and exploratory activities of which |
98% was spent outside Italy,
primarily in Mozambique, Norway, Congo, Togo, Nigeria,
the United States and Angola as well as acquisition of
new licenses in the Republic of Cyprus and in Vietnam; • upgrading of the fleet used in the Engineering & Construction Division (euro 902 million); • refining, supply and logistics in Italy and |
outside Italy (euro 444
million) with projects designed to improve the conversion
rate and flexibility of refineries, in particular at the
Sannazzaro Refinery, as well as the upgrade of the
refined product retail network in Italy and in the rest
of Europe (euro 175 million); • initiatives to improve flexibility of the combined cycle power plants (euro 121 million). |
- 31 -
Contents
Eni in 2013 Group results for the year
| Capital expenditure by Division (euro million) |
| 2011 | 2012 | 2013 | Change | % Ch. | |||||||||||
| 9,435 | Exploration & Production | 10,307 | 10,475 | 168 | 1.6 | ||||||||||
| 192 | Gas & Power | 225 | 232 | 7 | 3.1 | ||||||||||
| 866 | Refining & Marketing | 842 | 619 | (223 | ) | (26.5 | ) | ||||||||
| 216 | Versalis | 172 | 314 | 142 | 82.6 | ||||||||||
| 1,090 | Engineering & Construction | 1,011 | 902 | (109 | ) | (10.8 | ) | ||||||||
| 10 | Other activities | 14 | 21 | 7 | 50.0 | ||||||||||
| 128 | Corporate and financial companies | 152 | 190 | 38 | 25.0 | ||||||||||
| (28 | ) | Impact of unrealized intragroup profit elimination | 38 | (3 | ) | (41 | ) | ||||||||
| 11,909 | Capital expenditure - continuing operations | 12,761 | 12,750 | (11 | ) | (0.1 | ) | ||||||||
| 1,529 | Capital expenditure - discontinued operations | 756 | (756 | ) | .. | ||||||||||
| 13,438 | Capital expenditure | 13,517 | 12,750 | (767 | ) | (5.7 | ) | ||||||||
| > Sources and uses of cash The Company’s cash requirements for capital expenditure, buyback program, dividends to shareholders, and working capital were financed by a combination of funds generated from operations, borrowings and divestments. Net cash provided
by operating activities (euro 10,969 million)
and proceeds from disposals of euro 6,360 million funded
cash outflows relating to capital expenditure totaling
euro 12,750 million and investments (euro 317 million)
and dividend payments and other changes amounting to euro
4,231 million (of which euro 1,993 million relating to
2013 interim dividend). Net cash provided by operating
activities was positively influenced by higher
receivables due beyond the end of the reporting period,
being transferred to financing institutions compared to
the amount transferred at the end of the previous
reporting period (up euro 552 million; from euro 2,203
million as of December 31, 2012 to euro 2,755 million as
of December 31, 2013). > Capital structure and ratios |
previous years up to the
divestment of Italian gas transport activities which
occurred at the end of 2012. Going forward, management expects that the projected future cash flow from operations will provide enough resources to fund capital expenditure plans, pay a regular dividend which amounts will be set in accordance to our progressive dividend policy and maintain the leverage within the above mentioned range. We expect that our cash flow from operations will grow at a healthy rate along the plan period. This will be driven by increased cash generation in our Exploration & Production segment which will be underpinned by profitable production growth, cost control and capital discipline, as well as the restructuring of our Gas & Power, Refining & Marketing and Chemical businesses which will turn cash positive in the plan period due to contract renegotiations, expansion in profitable market segments and a reduced exposure to the commodity risk. Furthermore management expects to deliver approximately euro 9 billion of additional cash flows from asset disposals, of which euro 2.2 billion have been already cashed-in following the closing of the disposal of our interest in Arctic Russia early in January 2014. Our cash flow projections are based on our declining Brent scenario down progressively from 104 $/bbl in 2014 to 90 $/bbl in 2017. We note that the Brent price in the period January 1 to March 31, 2014 was 108.21 $/bbl on average. We estimated that our cash flow from operations may improve by around euro 0.1 billion for each dollar increase in Brent prices on a yearly basis. > Returning cash to shareholders |
May 2014. The dividend for
fiscal year 2013 represented an increase of 2% compared
to the 2012 dividend. The Company dividend policy contemplates a progressive, growing dividend at a rate which is expected to be determined year-to-year taking into account Eni’s underlying earnings and cash flow growth as well as capital expenditure requirements and the targeted financial structure. Management will also evaluate the achievement of the targeted production levels in the Exploration & Production segment, the status of renegotiations at gas long-term supply contracts in the Gas & Power segment and the delivery on efficiency gains in the other businesses. Based on current business trends and expectations, including the probable evolution of the Company’s financial structure, management expects to pay a dividend per share of euro 1.12 in 2014. Management is also planning to continue repurchasing the Eni shares, which has been authorized by the Shareholders Meeting for a total amount of euro 6 billion. Share repurchases have commenced since the beginning of 2014. In the future, share repurchases will be executed at management’s sole discretion and when a number of conditions are met. These include, but are not limited to, current trends in the trading environment, a level of leverage which management assesses to be sound enough given market conditions and well within our target range limit of 0.3, and full funding of capital expenditure requirements and dividends throughout the plan period. Outlook for 2014 The 2014 outlook features a moderate strengthening in the global economic recovery. Still a number of uncertainties are surrounding this outlook due to weak |
- 32 -
Contents
Eni in 2013 Group results for the year
| growth prospects in the
Euro-zone and risks concerning the emerging economies.
Crude oil prices are forecast on a solid trend driven by
geopolitical factors and the resulting technical issues
in a few important producing Countries against the
backdrop of well supplied global markets. Management
expects that the trading environment will remain
challenging in the other Company’s businesses. We
expect continuing weak conditions in the European
industries of gas distribution, refining and marketing of
fuels and chemical products, where we do not anticipate
any meaningful improvement in demand, while competition,
excess supplies and overcapacity will continue to weigh
on selling margins of energy commodities. In this
scenario, management reaffirms its commitment in
restoring profitability and preserving cash generation at
the Company’s loss-making businesses leveraging on
cost cuts and continuing renegotiation of long-term gas
supply contracts, capacity restructuring and reconversion
and product and marketing innovation. In 2014,
management expects a capital budget in line with 2013
(euro 12.75 billion in capital expenditure and euro 0.32
billion in financial investments). Assuming a Brent price
of $104 a barrel on average for the full year 2014, the
ratio of net borrowings to total equity – leverage
– is projected to be almost in line with the level
achieved at the end of 2013, due to cash flows from
operations and portfolio transactions. Financial risk factors > Market risk and sensitivity |
and marketing businesses and
petrochemical operations depends upon the speed at which
the prices of finished products adjust to reflect changes
in crude oil prices. In addition, the Group’s
activities are, to various degrees, sensitive to
fluctuations in the euro/$ exchange rate as commodities
are generally priced internationally in US dollars or
linked to dollar denominated products as in the case of
gas prices. Overall, an appreciation of the euro against
the dollar reduces the Group’s results from
operations and liquidity, and vice versa. As part of its financing and cash management activities, the Company uses derivative instruments to manage its exposure to changes in interest rates and foreign exchange rates. These instruments are principally interest rate and currency swaps. The Company also enters into commodity derivatives as part of its ordinary commercial, optimization and risk management activities as well as exceptionally to hedge the exposure to variability in future cash flows due to movements in commodity prices, in view of pursuing acquisitions of oil and gas reserves as part of the Company’s ordinary asset portfolio management or other strategic initiatives. During 2013, the above mentioned centralized model for the execution of financial derivatives has been ring-fenced in light of the relevant new financial regulations which became effective (EMIR/Dodd Frank). Eni’s activities are now in compliance with regulatory requirements which mandate that derivatives instruments be executed on an European Regulated Market or non European exchange, on a Multilateral Trading Facilities or purely OTC, by using semi-automated broker/crossing platform (so-called OTF) or directly with a counterpart. To comply with the EMIR framework, financial derivatives have been classified in order to clearly: a) isolate ex ante trading activities; b) define a priori the types of OTC derivative contracts included in the hedging portfolios and the eligibility criteria, and stating that the transactions in contracts included in the hedging portfolios are limited to covering risks directly related to commercial or treasury financing activities; c) provide for a sufficiently disaggregate view of the hedging portfolios in terms of e.g. asset class, product, time horizon, in order to establish the direct link between the portfolio of hedging transactions and the risks that this portfolio seeks to hedge. A derivative can be qualified a risk reducing instrument when, by itself or in combination with other derivative contracts (so-called macro or portfolio hedging): i) directly or through |
closely correlated
instruments (so-called proxy hedging) covers the risks
arising from potential changes in value, direct or caused
by fluctuation of interest rates, inflation rates,
foreign exchange rates or credit risk, of different
assets under Eni controls or that Eni will have under its
controls in the normal course of business or; ii)
qualifies as a hedging contract pursuant to International
Financial Reporting Standards (IFRS). > Liquidity and counterparty
risks |
- 33 -
Contents
Eni in 2013 Group results for the year
| consequence of the
availability of financial assets and lines of credit and
the access to a wide range of funding at competitive
costs through the credit system and capital markets. Eni has in place a program for the issuance of Euro Medium Term Notes up to euro 15 billion, of which about euro 13.7 billion were drawn as of December 31, 2013. In the course of 2013, Eni issued bonds for a total amount of euro 4.3 billion, of which euro 3.1 billion related to the Euro Medium Term Notes Program and euro 1.2 billion related to bonds exchangeable into Snam ordinary shares. At December 31, 2013, Eni maintained short-term committed and uncommitted unused borrowing facilities of euro 14.3 billion, of which euro 2.1 billion were committed, and long-term committed borrowing facilities of euro 4.7 billion which were completely undrawn at the balance sheet date. These facilities bore interest rates and fees for unused facilities that reflected prevailing market conditions. The Group has credit ratings of A and A-1 respectively for long and short-term debt assigned by Standard & Poor’s and A3 and P-2 assigned by Moody’s; the outlook is negative in both ratings. Eni’s credit rating is linked in addition to the Company’s industrial fundamentals and trends in the trading environment to the sovereign credit rating of Italy. On the basis of the methodologies used by Standard & Poor’s and Moody’s, a |
potential downgrade of
Italy’s credit rating may trigger a potential
knock-on effect on the credit rating of Italian issuers
such as Eni and make it more likely that the credit
rating of the notes or other debt instruments issued by
the Company could be downgraded. Eni, through the
constant monitoring of the international economic
environment and continuing dialogue with financial
investors and rating agencies, believes to be ready to
perceive emerging critical issues screened by the
financial community and to be able to react quickly to
any changes in the financial and the global macroeconomic
environment and implement the necessary actions to
mitigate such risks, coherently with Company strategies. Credit risk is the
potential exposure of the Group to losses in case
counterparties fail to perform or pay amounts due. The
Group manages differently credit risk depending on
whether credit risk arises from exposure to financial
counterparties or to customers relating to outstanding
receivables. Individual business units and Eni’s
corporate financial and accounting units are responsible
for managing credit risk arising in the normal course of
the business. |
units define directions and methods for quantifying and controlling customer’s reliability. With regard to risk arising from financial counterparties, Eni has established guidelines prior to entering into cash management and derivative contracts to assess the counterparty’s financial soundness and rating in view of optimizing the risk profile of financial activities while pursuing operational targets. Maximum limits of risk exposure are set in terms of maximum amounts of credit exposures for categories of counterparties as defined by the Company’s Board of Directors taking into account the credit ratings provided by primary credit rating agencies on the marketplace. Credit risk arising from financial counterparties is managed by the Group central finance department, including Eni’s subsidiary Eni Trading & Shipping which specifically engages in commodity derivatives transactions and by Group companies and Divisions, only in the case of physical transactions with financial counterparties consistently with the Group centralized finance model. Eligible financial counterparties are closely monitored to check exposures against limits assigned to each counterpart on a daily basis. Exceptional market conditions have forced the Group to adopt contingency plans and under certain circumstances to suspend eligibility to be a Group financial counterparty. Actions implemented also have been intended to limit concentrations of credit risk by maximizing counterparty diversification and turnover. |
- 34 -
Contents
Eni in 2013 Financial information
Financial information
| Summary of significant accounting policies and practices Eni prepares its consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and adopted by the European Union. Differences in certain respects between IFRS as endorsed by the EU and IFRS as issued by IASB are on matters that do not relate to Eni. On this basis, Eni’s financial statements are fully in compliance with IFRS as issued by IASB. The consolidated financial statements of Eni include accounts of the parent company Eni SpA and of all Italian and foreign significant subsidiaries in which Eni directly or indirectly holds the majority of voting rights or is otherwise able to exercise control as in the case of "de facto" controlled entities. Control comprises the power to govern the financial and operating policies of the investee so as to obtain benefit from its activities. Immaterial subsidiaries, jointly controlled entities, and other entities in which the group is in a position to exercise a significant influence through participation in the financial and operating policy decisions of the investee are generally accounted for under the equity method. Revenues from sales of crude oil, natural gas, petroleum and chemical products are recognized when the products are delivered and title passes to the customer. Revenue recognition in the Engineering & Construction division is based on the stage of completion of contracts as measured on the cost-to-cost basis applied to contractual revenues. Eni enters into various derivative financial transactions to manage exposures to certain market risks, including foreign currency exchange rate risks, interest rate risks and |
commodity risks. Such
derivative financial instruments
are assets and liabilities recognized at fair value
starting on the date on which a derivative contract is
entered into and are subsequently re-measured at fair
value. Derivatives are designated as hedges when the
hedging relationship between the hedged item or
transaction and the hedging instrument is highly
effective and formally documented. Changes in the fair
value of hedging derivatives are recognized: (i) for fair
value hedges, hedging the exposure to changes in the fair
value of a recognized asset or liability, in the profit
and loss account; (ii) for cash flow hedges, hedging
exposure to variability in cash flows, the effective
portion is recognized directly in equity, while the
ineffective portion is recognized in profit or loss;
subsequently amounts taken to equity are transferred to
the profit and loss account when the hedged transaction
affects profit or loss. Changes in fair value of
derivatives held for trading purposes, including
derivatives for which the hedging relationship is not
formally documented or is ineffective, are recognized in
profit or loss. Inventories of crude oil, natural gas and oil products are stated at the lower of purchase or production cost and net realizable value. Cost is determined by applying the weighted-average cost method. Contract work in progress is recorded on the basis of contractual considerations by reference to the stage of completion of a contract measured on a cost-to-cost basis. Property, plant and equipment is stated at cost less any accumulated depreciation, depletion and amortization charges and impairment losses. Depreciation, depletion and amortization of oil and gas properties (capitalized costs incurred to obtain access to proved reserves and to provide facilities for extracting, gathering and storing oil and gas) is calculated based on the Unit-Of-Production (UOP) method on proved reserves or proved developed reserves. Other property, plant and equipment is depreciated on a straight-line basis over its expected useful life. |
Exploration
costs (costs associated with exploratory
activities for oil and gas including geological and
geophysical exploration costs and exploratory drilling
well expenditure) are capitalized and fully amortized as
incurred. Intangible assets are initially stated at cost. Intangible assets having a defined useful life are amortized systematically, based on the straight-line method. Goodwill and intangibles lacking defined useful life are not amortized and are reviewed periodically for impairment. Recoverability of the carrying amounts of tangible and intangible assets Eni assesses its property, plant and equipment and intangible assets, including goodwill, for impairment whenever events or changes in circumstances indicate that the carrying values of the assets may not be recoverable. Indications of impairment include changes in the Group’s business plans, changes in commodity prices leading to unprofitable performance and, for oil and gas properties, significant downward revisions of estimated proved reserve quantities. The recoverability of an asset or Group of assets is assessed by comparing the carrying value with the recoverable amount represented by the higher of fair value less costs to sell and value in use. In assessing value in use, the Group makes an estimate of the future cash flows expected to be derived from the use of the asset on the basis of reasonable and documented assumptions that represent the best estimate of the future economic conditions during the remaining useful life of the asset, giving more importance to independent assumptions. Oil, natural gas and petroleum products prices used to quantify the expected future cash flows are estimated based on forward prices prevailing in the marketplace for the first four years of the estimate and management’s long-term planning assumptions thereafter. Future cash flows are discounted at a rate that reflects current market valuation of the time value of money and those specific risks of the asset that are not reflected in the estimation of future cash flows. The Group uses a discount rate that is calculates as the weighted average cost of capital to the Group |
- 35 -
Contents
Eni in 2013 Financial information
| (WACC), adjusted to reflect
specific Country risks of each asset. Asset retirement obligations, that may be incurred for the dismantling and removal of assets and the reclamation of sites, are evaluated estimating the costs to be incurred when the asset is retired. Future estimated costs are discounted if the effect of the time value of money is material. The initial estimate is reviewed periodically to reflect changes in circumstances and other factors surrounding the estimate, including the discount rates. The Company recognizes material provisions for asset retirement in the upstream business. No significant asset retirement obligations associated with any legal obligations to retire refining, marketing and transportation (downstream) and chemical long-lived assets are generally recognized, as indeterminate settlement dates for the asset retirement prevent estimation of the fair value of the associated asset retirement obligation. Provisions, including environmental liabilities, are recognized when the Group has a current obligation (legal or constructive) as a result of a past event, when it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, and when the obligation can be reliably estimated. The initial estimate to settle |
the obligation is discounted
when the effect of the time value of money is material.
The estimate is reviewed periodically to take account of
changes in costs expected to be incurred to settle the
obligation and other factors, including changes in the
discount rates. Eni is a party to a number of legal proceedings arising in the ordinary course of business. Based on information available to date, and taking into account the existing risk provisions, Eni’s management believes that ongoing litigations will not have a material adverse effect on Eni’s financial position and results of operations. However, there can be no assurance that in the future Eni will not incur material charges in connection with pending litigations as new information becomes available and new developments may occur. For further information about pending litigations, see Note 35 – Legal proceedings – to the consolidated financial statements of 2013 Eni’s Annual Report on Form 20-F filed with the US SEC. The preparation of consolidated financial statements requires the use of estimates and |
assumptions that affect the
reported amounts of assets, liabilities, revenues and
expenses. Estimates made are based on complex or
subjective judgments, past experience, other assumptions
deemed reasonable in consideration of the information
available at the time. The accounting policies and areas
that require the most significant judgments and estimates
to be used in the preparation of consolidated financial
statements are in relation to the accounting for oil and
natural gas activities, specifically in the determination
of proved and proved developed reserves, impairment of
fixed assets, intangible assets and goodwill, asset
retirement obligations, business combinations, pensions
and other postretirement benefits, recognition of
environmental liabilities and recognition of revenues in
the oilfield services construction and engineering
businesses. Although the Company uses its best estimates
and judgments, actual results could differ from the
estimates and assumptions used. For further information regarding accounting policies and practices, see Note 3 – Summary of significant accounting policies – and Note 5 – Use of accounting estimates – to the consolidated financial statements of 2013 Eni’s Annual Report. |
- 36 -
Contents
Eni in 2013 Financial information
| Profit and loss account (euro million) |
| 2011 | 2012 | 2013 | |||||||
| REVENUES | |||||||||
| Net sales from operations | 107,690 | 127,220 | 114,722 | ||||||
| Other income and revenues | 926 | 1,546 | 1,385 | ||||||
| 108,616 | 128,766 | 116,107 | |||||||
| OPERATING EXPENSES | |||||||||
| Purchases, service and other | 78,795 | 95,363 | 90,213 | ||||||
| - of which non-recurring charge (income) | 69 | ||||||||
| Payroll and related costs | 4,404 | 4,613 | 5,264 | ||||||
| OTHER OPERATING (EXPENSE) INCOME | 171 | (158 | ) | (71 | ) | ||||
| DEPRECIATION, DEPLETION, AMORTIZATION AND IMPAIRMENTS | 8,785 | 13,561 | 11,703 | ||||||
| OPERATING PROFIT | 16,803 | 15,071 | 8,856 | ||||||
| FINANCE INCOME (EXPENSE) | |||||||||
| Finance income | 6,376 | 7,218 | 5,746 | ||||||
| Finance expense | (7,410 | ) | (8,314 | ) | (6,649 | ) | |||
| Finance income (expense) from financial instruments held for trading, net | 4 | ||||||||
| Derivative financial instruments | (112 | ) | (251 | ) | (92 | ) | |||
| (1,146 | ) | (1,347 | ) | (991 | ) | ||||
| INCOME (EXPENSE) FROM INVESTMENTS | |||||||||
| Share of profit (loss) of equity-accounted investments | 500 | 278 | 252 | ||||||
| Other gain (loss) from investments | 1,623 | 2,603 | 5,863 | ||||||
| - of which gains on disposal of the 28.57% of Eni East Africa BV | 3,359 | ||||||||
| 2,123 | 2,881 | 6,115 | |||||||
| PROFIT BEFORE INCOME TAXES | 17,780 | 16,605 | 13,980 | ||||||
| Income taxes | (9,903 | ) | (11,661 | ) | (9,008 | ) | |||
| Net profit - Continuing operations | 7,877 | 4,944 | 4,972 | ||||||
| Net profit (loss) - Discontinued operations | (74 | ) | 3,732 | ||||||
| Net profit | 7,803 | 8,676 | 4,972 | ||||||
| Attributable to: | |||||||||
| Eni’s shareholders | |||||||||
| - continuing operations | 6,902 | 4,200 | 5,160 | ||||||
| - discontinued operations | (42 | ) | 3,590 | ||||||
| 6,860 | 7,790 | 5,160 | |||||||
| Non-controlling interest | |||||||||
| - continuing operations | 975 | 744 | (188 | ) | |||||
| - discontinued operations | (32 | ) | 142 | ||||||
| 943 | 886 | (188 | ) | ||||||
- 37 -
Contents
Eni in 2013 Financial information
| Balance sheet (euro million) |
| Dec. 31, 2012 | Dec. 31, 2013 | |||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 7,765 | 5,288 | ||||
| Other financial assets held for trading | 5,004 | |||||
| Other financial assets available for sale | 235 | 235 | ||||
| Trade and other receivables | 28,747 | 29,073 | ||||
| Inventories | 8,496 | 7,883 | ||||
| Current tax assets | 771 | 802 | ||||
| Other current tax assets | 1,230 | 825 | ||||
| Other current assets | 1,624 | 1,325 | ||||
| 48,868 | 50,435 | |||||
| Non-current assets | ||||||
| Property, plant and equipment | 63,466 | 62,506 | ||||
| Inventory - compulsory stock | 2,538 | 2,571 | ||||
| Intangible assets | 4,487 | 3,877 | ||||
| Equity-accounted investments | 4,262 | 3,934 | ||||
| Other investments | 5,085 | 3,027 | ||||
| Other financial assets | 1,229 | 1,097 | ||||
| Deferred tax assets | 5,027 | 4,662 | ||||
| Other non-current receivables | 4,400 | 3,683 | ||||
| 90,494 | 85,357 | |||||
| Assets held for sale | 516 | 2,296 | ||||
| TOTAL ASSETS | 139,878 | 138,088 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Short-term debt | 2,223 | 2,742 | ||||
| Current portion of long-term debt | 2,961 | 2,149 | ||||
| Trade and other payables | 23,581 | 23,598 | ||||
| Income taxes payables | 1,622 | 742 | ||||
| Other taxes payables | 2,162 | 2,268 | ||||
| Other current liabilities | 1,437 | 1,448 | ||||
| 33,986 | 32,947 | |||||
| Non-current liabilities | ||||||
| Long-term debt | 19,279 | 20,988 | ||||
| Provisions for contingencies | 13,603 | 13,167 | ||||
| Provisions for employee benefits | 1,374 | 1,245 | ||||
| Deferred tax liabilities | 6,740 | 6,723 | ||||
| Other non-current liabilities | 1,977 | 1,704 | ||||
| 42,973 | 43,827 | |||||
| Liabilities directly associated with assets held for sale | 361 | 140 | ||||
| TOTAL LIABILITIES | 77,320 | 76,914 | ||||
| SHAREHOLDERS’ EQUITY | ||||||
| Non-controlling interest | 3,498 | 2,964 | ||||
| Eni shareholders’ equity | ||||||
| Share capital | 4,005 | 4,005 | ||||
| Reserves related to the fair value of cash flow hedging derivatives net of tax effect | (16 | ) | (154 | ) | ||
| Other reserves | 49,438 | 51,393 | ||||
| Treasury shares | (201 | ) | (201 | ) | ||
| Interim dividend | (1,956 | ) | (1,993 | ) | ||
| Net profit | 7,790 | 5,160 | ||||
| Total Eni shareholders’ equity | 59,060 | 58,210 | ||||
| TOTAL SHAREHOLDERS’ EQUITY | 62,558 | 61,174 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 139,878 | 138,088 | ||||
- 38 -
Contents
Eni in 2013 Financial information
| Statements of cash flows (euro million) |
| 2011 | 2012 | 2013 | |||||||
| Net profit of the year - Continuing operations | 7,877 | 4,944 | 4,972 | ||||||
| Adjustments to reconcile net profit to net cash provided by operating activities: | |||||||||
| Depreciation and amortization | 7,755 | 9,538 | 9,303 | ||||||
| Impairments of tangible and intangible assets, net | 1,030 | 4,023 | 2,400 | ||||||
| Share of (profit) loss of equity-accounted investments | (500 | ) | (278 | ) | (252 | ) | |||
| Gain on disposal of assets, net | (1,176 | ) | (875 | ) | (3,770 | ) | |||
| Dividend income | (659 | ) | (431 | ) | (400 | ) | |||
| Interest income | (99 | ) | (108 | ) | (155 | ) | |||
| Interest expense | 773 | 803 | 709 | ||||||
| Income taxes | 9,903 | 11,661 | 9,008 | ||||||
| Other changes | 331 | (1,945 | ) | (1,878 | ) | ||||
| Changes in working capital: | |||||||||
| - inventories | (1,400 | ) | (1,395 | ) | 320 | ||||
| - trade receivables | 218 | (3,184 | ) | (1,363 | ) | ||||
| - trade payables | 34 | 2,029 | 706 | ||||||
| - provisions for contingencies | 109 | 338 | 58 | ||||||
| - other assets and liabilities | (657 | ) | (1,161 | ) | 765 | ||||
| Cash flow from changes in working capital | (1,696 | ) | (3,373 | ) | 486 | ||||
| Net change in the provisions for employee benefits | (10 | ) | 11 | 5 | |||||
| Dividends received | 955 | 988 | 684 | ||||||
| Interest received | 99 | 91 | 108 | ||||||
| Interest paid | (927 | ) | (825 | ) | (944 | ) | |||
| Income taxes paid, net of tax receivables received | (9,893 | ) | (11,868 | ) | (9,307 | ) | |||
| Net cash provided by operating activities - Continuing operations | 13,763 | 12,356 | 10,969 | ||||||
| Net cash provided by operating activities - Discontinued operations | 619 | 15 | |||||||
| Net cash provided by operating activities | 14,382 | 12,371 | 10,969 | ||||||
| Investing activities: | |||||||||
| - tangible assets | (11,658 | ) | (11,222 | ) | (10,864 | ) | |||
| - intangible assets | (1,780 | ) | (2,295 | ) | (1,886 | ) | |||
| - consolidated subsidiaries and businesses | (115 | ) | (178 | ) | (25 | ) | |||
| - investments | (245 | ) | (391 | ) | (292 | ) | |||
| - securities | (62 | ) | (17 | ) | (5,048 | ) | |||
| - financing receivables | (715 | ) | (1,634 | ) | (989 | ) | |||
| - change in payables and receivables in relation to investing activities and capitalized depreciation | 379 | 54 | 48 | ||||||
| Cash flow from investing activities | (14,196 | ) | (15,683 | ) | (19,056 | ) | |||
| Disposals: | |||||||||
| - tangible assets | 154 | 1,229 | 514 | ||||||
| - intangible assets | 41 | 61 | 16 | ||||||
| - consolidated subsidiaries and businesses | 1,006 | 3,521 | 3,401 | ||||||
| - investments | 711 | 1,203 | 2,429 | ||||||
| - securities | 128 | 52 | 33 | ||||||
| - financing receivables | 695 | 1,578 | 1,565 | ||||||
| - change in payables and receivables in relation to disposals | 243 | (252 | ) | 155 | |||||
| Cash flow from disposals | 2,978 | 7,392 | 8,113 | ||||||
| Net cash used in investing activities | (11,218 | ) | (8,291 | ) | (10,943 | ) | |||
| Proceeds from long-term debt | 4,474 | 10,484 | 5,418 | ||||||
| Repayments of long-term debt | (889 | ) | (3,784 | ) | (4,669 | ) | |||
| Increase (decrease) in short-term debt | (2,481 | ) | (753 | ) | 1,029 | ||||
| 1,104 | 5,947 | 1,778 | |||||||
| Net capital contributions by non-controlling interest | 26 | (4 | ) | ||||||
| Sale of treasury shares | 3 | ||||||||
| Net acquisition of treasury shares different from Eni SpA | 17 | 29 | 1 | ||||||
| Acquisition of additional interests in consolidated subsidiaries | (126 | ) | 604 | (28 | ) | ||||
| Dividends paid to Eni’s shareholders | (3,695 | ) | (3,840 | ) | (3,949 | ) | |||
| Dividends paid to non-controlling interest | (552 | ) | (539 | ) | (251 | ) | |||
| Net cash used in financing activities | (3,223 | ) | 2,201 | (2,453 | ) | ||||
| Effect of change in consolidation (inclusion/exclusion of significant/insignificant subsidiaries) | (7 | ) | (4 | ) | (13 | ) | |||
| Effect of exchange rate changes on cash and cash equivalents and other changes | 17 | (12 | ) | (37 | ) | ||||
| Net cash flow of the year | (49 | ) | 6,265 | (2,477 | ) | ||||
| Cash and cash equivalents - beginning of the year | 1,549 | 1,500 | 7,765 | ||||||
| Cash and cash equivalents - end of the year | 1,500 | 7,765 | 5,288 | ||||||
- 39 -
Contents
Eni in 2013 Financial information
| Non-GAAP measures > Reconciliation of reported
operating profit and reported net profit to results on an
adjusted basis |
margins and translation of
commercial payables and receivables. Accordingly also
currency translation effects recorded through profit and
loss are reported within business segments’ adjusted
operating profit. The taxation effect of the items excluded from adjusted operating or net profit is determined based on the specific rate of taxes applicable to each of them. The Italian statutory tax rate is applied to finance charges and income (38% is applied to charges recorded by companies in the energy sector, whilst a tax rate of 27.5% is applied to all other companies). Adjusted operating profit and adjusted net profit are non-GAAP financial measures under either IFRS, or US GAAP. Management includes them in order to facilitate a comparison of base business performance across periods, and to allow financial analysts to evaluate Eni’s trading performance on the basis of their forecasting |
models. The following is a
description of items that are excluded from the
calculation of adjusted results. Inventory holding gain or loss is the difference between the cost of sales of the volumes sold in the period based on the cost of supplies of the same period and the cost of sales of the volumes sold calculated using the weighted average cost method of inventory accounting. Special items include certain significant income or charges pertaining to either: (i) infrequent or unusual events and transactions, being identified as non-recurring items under such circumstances; (ii) certain events or transactions which are not considered to be representative of the ordinary course of business, as in the case of environmental provisions, restructuring charges, asset |
| 2013 (euro million) |
Exploration
& Production |
Gas & Powe |
Refining &
Marketing |
Versalis |
Engineering
& Construction |
Corporate and
financial companies |
Other activities |
Impact of
unrealized intragroup profit elimination |
GROUP |
||||||||||
| Operating profit | 14,871 | (2,992 | ) | (1,517 | ) | (725 | ) | (83 | ) | (399 | ) | (337 | ) | 38 | 8,856 | ||||||||||||
| Exclusion of inventory holding (gains) losses | 191 | 221 | 213 | 91 | 716 | ||||||||||||||||||||||
| Exclusion of special items: | |||||||||||||||||||||||||||
| - environmental charges | (1 | ) | 93 | 61 | 52 | 205 | |||||||||||||||||||||
| - asset impairments | 19 | 1,685 | 633 | 44 | 19 | 2,400 | |||||||||||||||||||||
| - net gains on disposal of assets | (283 | ) | 1 | (9 | ) | 107 | (3 | ) | (187 | ) | |||||||||||||||||
| - risk provisions | 7 | 292 | 4 | 31 | 334 | ||||||||||||||||||||||
| - provision
for redundancy incentives |
52 | 10 | 91 | 23 | 2 | 72 | 20 | 270 | |||||||||||||||||||
| - commodity derivatives | (2 | ) | 314 | 5 | (1 | ) | (1 | ) | 315 | ||||||||||||||||||
| - exchange
rate differences and derivatives |
(2 | ) | (186 | ) | (2 | ) | (5 | ) | (195 | ) | |||||||||||||||||
| - other | (16 | ) | 23 | 3 | (109 | ) | (5 | ) | 8 | (96 | ) | ||||||||||||||||
| Special items of operating profit | (225 | ) | 2,138 | 814 | 126 | (1 | ) | 67 | 127 | 3,046 | |||||||||||||||||
| Adjusted operating profit | 14,646 | (663 | ) | (482 | ) | (386 | ) | (84 | ) | (332 | ) | (210 | ) | 129 | 12,618 | ||||||||||||
| Net finance (expense) income (a) | (264 | ) | 24 | (4 | ) | (2 | ) | (5 | ) | (554 | ) | 4 | (801 | ) | |||||||||||||
| Net income (expense) from investments (a) | 367 | 100 | 70 | (12 | ) | 290 | 1 | 816 | |||||||||||||||||||
| Income taxes (a) | (8,797 | ) | 293 | 184 | 50 | (152 | ) | 124 | (90 | ) | (8,388 | ) | |||||||||||||||
| Tax rate (%) | 59.6 | .. | .. | .. | 66.4 | ||||||||||||||||||||||
| Adjusted net profit | 5,952 | (246 | ) | (232 | ) | (338 | ) | (253 | ) | (472 | ) | (205 | ) | 39 | 4,245 | ||||||||||||
| of which attributable to: | |||||||||||||||||||||||||||
| - non-controlling interest | (188 | ) | |||||||||||||||||||||||||
| - Eni’s shareholders | 4,433 | ||||||||||||||||||||||||||
| Net profit attributable to Eni’s shareholders | 5,160 | ||||||||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | 438 | ||||||||||||||||||||||||||
| Exclusion of special items | (1,165 | ) | |||||||||||||||||||||||||
| Adjusted net profit attributable to Eni’s shareholders | 4,433 | ||||||||||||||||||||||||||
| (a) Excluding special items. |
- 40 -
Contents
Eni in 2012 Financial information
| impairments or write ups and
gains or losses on divestments even though they occurred
in past periods or are likely to occur in future ones; or
(iii) exchange rate differences and derivatives relating
to industrial activities and commercial payables and
receivables, particularly exchange rate derivatives to
manage commodity pricing formulas which are quoted in a
currency other than the functional currency. Those items
are reclassified in operating profit with a corresponding
adjustment to net finance charges, notwithstanding the
handling of foreign currency exchange risks is made
centrally by netting off naturally-occurring opposite
positions and then dealing with any residual risk
exposure in the exchange rate market. As provided for in Decision No. 15519 of July 27, 2006, of the Italian market regulator |
(Consob), non recurring
material income or charges are to be clearly reported in
the management’s discussion and financial tables.
Also, special items include gains and losses on
re-measurement at fair value of certain non hedging
commodity derivatives, including the ineffective portion
of cash flow hedges and certain derivatives financial
instruments embedded in the pricing formula of long-term
gas supply agreements of the Exploration & Production
Division. Finance charges or income related to net borrowings excluded from the adjusted net profit of business segments are comprised of interest charges on finance debt and interest income earned on cash and cash equivalents not related to operations. Therefore, the |
adjusted net profit of business segments includes finance charges or income deriving from certain segment-operated assets, i.e., interest income on certain receivable financing and securities related to operations and finance charge pertaining to the accretion of certain provisions recorded on a discounted basis (as in the case of the asset retirement obligations in the Exploration & Production Division). Finance charges or interest income and related taxation effects excluded from the adjusted net profit of the business segments are allocated on the aggregate corporate and financial companies. For a reconciliation of adjusted operating profit and adjusted net profit to reported operating profit and reported net profit see tables below. |
| 2012 (euro million) |
OTHER ACTIVITIES (a) |
DISCONTINUED
OPERATIONS |
||||
Exploration
& Production |
Gas & Power (a) |
Refining &
Marketing |
Versalis |
Engineering
& Construction |
Corporate and
financial companies |
Snam |
Other activities |
Impact of
unrealized intragroup profit elimination |
GROUP |
Snam |
Consolidation
adjustments |
Total |
CONTINUING
OPERATIONS |
|||||||||||||||
| Operating profit | 18,470 | (3,219 | ) | (1,296 | ) | (681 | ) | 1,442 | (341 | ) | 1,679 | (300 | ) | 208 | 15,962 | (1,679 | ) | 788 | (891 | ) | 15,071 | |||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | 163 | (29 | ) | 63 | (214 | ) | (17 | ) | (17 | ) | ||||||||||||||||||||||||||||||||
| Exclusion of special items: | ||||||||||||||||||||||||||||||||||||||||||
| - environmental charges | (2 | ) | 40 | 71 | 25 | 134 | (71 | ) | (71 | ) | 63 | |||||||||||||||||||||||||||||||
| - asset impairments | 550 | 2,494 | 846 | 112 | 25 | 2 | 4,029 | 4,029 | ||||||||||||||||||||||||||||||||||
| - net gains on disposal of assets | (542 | ) | (3 | ) | 5 | 1 | 3 | (22 | ) | (12 | ) | (570 | ) | 22 | 22 | (548 | ) | |||||||||||||||||||||||||
| - risk provisions | 7 | 831 | 49 | 18 | 5 | 35 | 945 | 945 | ||||||||||||||||||||||||||||||||||
| - provision
for redundancy incentives |
6 | 5 | 19 | 14 | 7 | 11 | 2 | 2 | 66 | (2 | ) | (2 | ) | 64 | ||||||||||||||||||||||||||||
| - commodity derivatives | 1 | 1 | (3 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||||||||||||||||
| - exchange
rate differences and derivatives |
(9 | ) | (51 | ) | (8 | ) | (11 | ) | (79 | ) | (79 | ) | ||||||||||||||||||||||||||||||
| - other | 54 | 138 | 53 | 26 | 271 | 271 | ||||||||||||||||||||||||||||||||||||
| Special items of operating profit | 67 | 3,412 | 1,004 | 135 | 32 | 16 | 51 | 78 | 4,795 | (51 | ) | (51 | ) | 4,744 | ||||||||||||||||||||||||||||
| Adjusted operating profit | 18,537 | 356 | (321 | ) | (483 | ) | 1,474 | (325 | ) | 1,730 | (222 | ) | (6 | ) | 20,740 | (1,730 | ) | 788 | (942 | ) | 19,798 | |||||||||||||||||||||
| Net finance (expense) income (b) | (264 | ) | 29 | (11 | ) | (3 | ) | (7 | ) | (865 | ) | (54 | ) | (24 | ) | (1,199 | ) | 54 | 54 | (1,145 | ) | |||||||||||||||||||||
| Net income (expense) from investments (b) | 436 | 261 | 63 | 2 | 55 | 99 | 38 | (1 | ) | 953 | (38 | ) | (38 | ) | 915 | |||||||||||||||||||||||||||
| Income taxes (b) | (11,283 | ) | (173 | ) | 90 | 89 | (411 | ) | 115 | (712 | ) | 2 | (12,283 | ) | 712 | (123 | ) | 589 | (11,694 | ) | ||||||||||||||||||||||
| Tax rate (%) | 60.3 | 26.8 | .. | 27.0 | 41.5 | 59.9 | 59.8 | |||||||||||||||||||||||||||||||||||
| Adjusted net profit | 7,426 | 473 | (179 | ) | (395 | ) | 1,111 | (976 | ) | 1,002 | (247 | ) | (4 | ) | 8,211 | (1,002 | ) | 665 | (337 | ) | 7,874 | |||||||||||||||||||||
| of which attributable to: | ||||||||||||||||||||||||||||||||||||||||||
| - non-controlling interest | 886 | (142 | ) | 744 | ||||||||||||||||||||||||||||||||||||||
| - Eni’s shareholders | 7,325 | (195 | ) | 7,130 | ||||||||||||||||||||||||||||||||||||||
| Net profit attributable to Eni’s shareholders | 7,790 | (3,590 | ) | 4,200 | ||||||||||||||||||||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | (23 | ) | (23 | ) | ||||||||||||||||||||||||||||||||||||||
| Exclusion of special items | (442 | ) | 3,395 | 2,953 | ||||||||||||||||||||||||||||||||||||||
| Adjusted net profit attributable to Eni’s shareholders | 7,325 | (195 | ) | 7,130 | ||||||||||||||||||||||||||||||||||||||
| (a)
Following the divestment of the Regulated Businesses in
Italy, Snam results are reclassified from "Gas &
Power" sector to "Other activities" and
accounted as discontinued operations. (b) Excluding special items. |
- 41 -
Contents
Eni in 2013 Financial information
| 2011 (euro million) |
OTHER ACTIVITIES (a) |
DISCONTINUED
OPERATIONS |
||||
Exploration
& Production |
Gas & Power (a) |
Refining &
Marketing |
Versalis |
Engineering
& Construction |
Corporate and
financial companies |
Snam |
Other activities |
Impact of
unrealized intragroup profit elimination |
GROUP |
Snam |
Consolidation
adjustments |
Total |
CONTINUING
OPERATIONS |
|||||||||||||||
| Operating profit | 15,887 | (326 | ) | (273 | ) | (424 | ) | 1,422 | (319 | ) | 2,084 | (427 | ) | (189 | ) | 17,435 | (2,084 | ) | 1,452 | (632 | ) | 16,803 | ||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | (166 | ) | (907 | ) | (40 | ) | (1,113 | ) | (1,113 | ) | ||||||||||||||||||||||||||||||||
| Exclusion of special items | ||||||||||||||||||||||||||||||||||||||||||
| of which: | ||||||||||||||||||||||||||||||||||||||||||
| Non-recurring (income) charges | 10 | 59 | 69 | 69 | ||||||||||||||||||||||||||||||||||||||
| Other special (income) charges: | 188 | 245 | 641 | 181 | 21 | 53 | 27 | 142 | 1,498 | (27 | ) | (27 | ) | 1,471 | ||||||||||||||||||||||||||||
| - asset impairments | 190 | 154 | 488 | 160 | 35 | (9 | ) | 4 | 1,022 | 9 | 9 | 1,031 | ||||||||||||||||||||||||||||||
| - net gains on disposal of assets | (63 | ) | 10 | 4 | (1 | ) | (4 | ) | (7 | ) | (61 | ) | 4 | 4 | (57 | ) | ||||||||||||||||||||||||||
| - risk provisions | 77 | 8 | (6 | ) | 9 | 88 | 88 | |||||||||||||||||||||||||||||||||||
| - environmental charges | 34 | 1 | 10 | 141 | 186 | (10 | ) | (10 | ) | 176 | ||||||||||||||||||||||||||||||||
| - provision for redundancy incentives |
44 | 34 | 81 | 17 | 10 | 9 | 6 | 8 | 209 | (6 | ) | (6 | ) | 203 | ||||||||||||||||||||||||||||
| - commodity derivatives | 1 | 45 | (3 | ) | (28 | ) | 15 | 15 | ||||||||||||||||||||||||||||||||||
| - exchange rate differences and derivatives |
(2 | ) | (82 | ) | (4 | ) | 3 | (85 | ) | (85 | ) | |||||||||||||||||||||||||||||||
| - other | 18 | 17 | 27 | 51 | 24 | (13 | ) | 124 | (24 | ) | (24 | ) | 100 | |||||||||||||||||||||||||||||
| Special items of operating profit | 188 | 245 | 641 | 191 | 21 | 53 | 27 | 201 | 1,567 | (27 | ) | (27 | ) | 1,540 | ||||||||||||||||||||||||||||
| Adjusted operating profit | 16,075 | (247 | ) | (539 | ) | (273 | ) | 1,443 | (266 | ) | 2,111 | (226 | ) | (189 | ) | 17,889 | (2,111 | ) | 1,452 | (659 | ) | 17,230 | ||||||||||||||||||||
| Net finance (expense) income (b) | (231 | ) | 43 | (876 | ) | 19 | 5 | (1,040 | ) | (19 | ) | (19 | ) | (1,059 | ) | |||||||||||||||||||||||||||
| Net income (expense) from investments (b) | 624 | 363 | 99 | 95 | 1 | 44 | (3 | ) | 1,223 | (44 | ) | (44 | ) | 1,179 | ||||||||||||||||||||||||||||
| Income taxes (b) | (9,603 | ) | 93 | 176 | 67 | (440 | ) | 388 | (918 | ) | (1 | ) | 78 | (10,160 | ) | 918 | (195 | ) | 723 | (9,437 | ) | |||||||||||||||||||||
| Tax rate (%) | 58.3 | .. | .. | 28.6 | 42.2 | 56.2 | 54.4 | |||||||||||||||||||||||||||||||||||
| Adjusted net profit | 6,865 | 252 | (264 | ) | (206 | ) | 1,098 | (753 | ) | 1,256 | (225 | ) | (111 | ) | 7,912 | (1,256 | ) | 1,257 | 1 | 7,913 | ||||||||||||||||||||||
| of which attributable to: | ||||||||||||||||||||||||||||||||||||||||||
| - non-controlling interest | 943 | 32 | 975 | |||||||||||||||||||||||||||||||||||||||
| - Eni’s shareholders | 6,969 | (31 | ) | 6,938 | ||||||||||||||||||||||||||||||||||||||
| Net profit attributable to Eni’s shareholders | 6,860 | 42 | 6,902 | |||||||||||||||||||||||||||||||||||||||
| Exclusion of inventory holding (gains) losses | (724 | ) | (724 | ) | ||||||||||||||||||||||||||||||||||||||
| Exclusion of special items: | 833 | (73 | ) | 760 | ||||||||||||||||||||||||||||||||||||||
| - non-recurring charges | 69 | 69 | ||||||||||||||||||||||||||||||||||||||||
| - other special (income) charges | 764 | (73 | ) | 691 | ||||||||||||||||||||||||||||||||||||||
| Adjusted net profit attributable to Eni’s shareholders | 6,969 | (31 | ) | 6,938 | ||||||||||||||||||||||||||||||||||||||
| (a)
Following the divestment of the Regulated Businesses in
Italy, Snam results are reclassified from "Gas &
Power" sector to "Other activities" and
accounted as discontinued operations. (b) Excluding special items. |
- 42 -
Contents
Eni in 2013 Financial information
For a reconciliation of Summarized Group Balance Sheet and Summarized Group Cash Flow Statement with the corresponding statutory tables see Eni’s 2013 Annual Report, "Reconciliation of Summarized Group Balance Sheet and Statement of Cash Flows to Statutory Schemes" pages 87-89.
| > Summarized Group Balance Sheet The Summarized Group Balance Sheet aggregates the amount of assets and liabilities derived from the statutory balance sheet in accordance with functional criteria which consider the enterprise conventionally divided into the three fundamental areas |
focusing on resource investments, operations and financing. Management believes that this summarized group balance sheet is useful information in assisting investors to assess Eni’s capital structure and to analyze its sources of funds and investments in fixed assets and working capital. Management | uses the summarized group balance sheet to calculate key ratios such as the proportion of net borrowings to shareholders’ equity (leverage) intended to evaluate whether Eni’s financing structure is sound and well-balanced. |
| Summarized Group Balance Sheet (euro million) |
| Dec. 31, 2012 | Dec. 31, 2013 | |||||
| Fixed assets | ||||||
| Property, plant and equipment | 63,466 | 62,506 | ||||
| Inventories - Compulsory stock | 2,538 | 2,571 | ||||
| Intangible assets | 4,487 | 3,877 | ||||
| Equity-accounted investments and other investments | 9,347 | 6,961 | ||||
| Receivables and securities held for operating purposes | 1,457 | 1,607 | ||||
| Net payables related to capital expenditure | (1,142 | ) | (1,256 | ) | ||
| 80,153 | 76,266 | |||||
| Net working capital | ||||||
| Inventories | 8,496 | 7,883 | ||||
| Trade receivables | 19,966 | 21,213 | ||||
| Trade payables | (14,993 | ) | (15,529 | ) | ||
| Tax payables and provisions for net deferred tax liabilities | (3,204 | ) | (3,005 | ) | ||
| Provisions | (13,603 | ) | (13,167 | ) | ||
| Other current assets and liabilities | 2,473 | 2,030 | ||||
| (865 | ) | (575 | ) | |||
| Provisions for employee post-retirement benefits | (1,374 | ) | (1,245 | ) | ||
| Assets held for sale including related liabilities | 155 | 2,156 | ||||
| CAPITAL EMPLOYED NET | 78,069 | 76,602 | ||||
| Eni shareholders’ equity | 59,060 | 58,210 | ||||
| Non-controlling interest | 3,498 | 2,964 | ||||
| Shareholders’ equity | 62,558 | 61,174 | ||||
| Net borrowings | 15,511 | 15,428 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 78,069 | 76,602 | ||||
| > Net borrowings and leverage Eni evaluates its financial condition by reference to net borrowings, which is calculated as total finance debt less: cash, cash equivalents and certain very liquid investments not related to operations, including among others non-operating financing receivables and securities not related to operations. Non-operating financing receivables consist of amounts due to Eni’s |
financing subsidiaries from
banks and other financing institutions and amounts due to
other subsidiaries from banks for investing purposes and
deposits in escrow. Securities not related to operations
consist primarily of government and corporate securities. Leverage is a measure used by management to assess the Company’s level of indebtedness. It is calculated as a ratio of net borrowings which is calculated by excluding cash and |
cash equivalents and certain very liquid assets from financial debt to shareholders’ equity, including non-controlling interest. Management periodically reviews leverage in order to assess the soundness and efficiency of the Group balance sheet in terms of optimal mix between net borrowings and net equity, and to carry out benchmark analysis with industry standards. |
- 43 -
Contents
Eni in 2013 Financial information
| Net borrowings and leverage (euro million) |
| Dec. 31, 2012 | Dec. 31, 2013 | |||||
| Total debt | 24,463 | 25,879 | ||||
| - Short-term debt | 5,184 | 4,891 | ||||
| - Long-term debt | 19,279 | 20,988 | ||||
| Cash and cash equivalents | (7,765 | ) | (5,288 | ) | ||
| Securities held for trading and other securities held for non-operating purpose | (34 | ) | (5,037 | ) | ||
| Financing receivables for non-operating purposes | (1,153 | ) | (126 | ) | ||
| Net borrowings | 15,511 | 15,428 | ||||
| Shareholders’ equity including non-controlling interest | 62,558 | 61,174 | ||||
| Leverage | 0.25 | 0.25 | ||||
| > Summarized Group Cash Flow Statement and Change in net borrowings Eni’s summarized Group cash flow statement derives from the statutory statement of cash flows. It enables investors to understand the link existing between changes in cash and cash equivalents (deriving from the statutory cash flows statement) and in net borrowings (deriving from the summarized cash flow |
statement) that occurred from the beginning of the period to the end of period. The measure enabling such a link is represented by the free cash flow which is the cash in excess of capital expenditure needs. Starting from free cash flow it is possible to determine either: (i) changes in cash and cash equivalents for the period by adding/deducting cash flows relating to financing debts/receivables (issuance/repayment of debt and receivables related | to financing activities), shareholders’ equity (dividends paid, net repurchase of own shares, capital issuance) and the effect of changes in consolidation and of exchange rate differences; and (ii) change in net borrowings for the period by adding/deducting cash flows relating to shareholders’ equity and the effect of changes in consolidation and of exchange rate differences. The free cash flow is a non-GAAP measure of financial performance. | ||
| Summarized Group Cash Flow Statement (euro million) |
| 2011 | 2012 | 2013 | |||||||
| Net profit - continuing operations | 7,877 | 4,944 | 4,972 | ||||||
| Adjustments to reconcile net profit to net cash provided by operating activities: | |||||||||
| - depreciation, depletion and amortization and other non-monetary items | 8,606 | 11,349 | 9,578 | ||||||
| - net gains on disposal of assets | (1,176 | ) | (875 | ) | (3,770 | ) | |||
| - dividends, interest, taxes and other changes | 9,918 | 11,925 | 9,162 | ||||||
| Changes in working capital related to operations | (1,696 | ) | (3,373 | ) | 486 | ||||
| Dividends received, taxes paid, interest (paid) received during the period | (9,766 | ) | (11,614 | ) | (9,459 | ) | |||
| Net cash provided by operating activities - continuing operations | 13,763 | 12,356 | 10,969 | ||||||
| Net cash provided by operating activities - discontinued operations | 619 | 15 | |||||||
| Net cash provided by operating activities | 14,382 | 12,371 | 10,969 | ||||||
| Capital expenditure - continuing operations | (11,909 | ) | (12,761 | ) | (12,750 | ) | |||
| Capital expenditure - discontinued operations | (1,529 | ) | (756 | ) | |||||
| Capital expenditure | (13,438 | ) | (13,517 | ) | (12,750 | ) | |||
| Investments and purchase of consolidated subsidiaries and businesses | (360 | ) | (569 | ) | (317 | ) | |||
| Disposals | 1,912 | 6,014 | 6,360 | ||||||
| Other cash flow related to capital expenditure, investments and disposals | 627 | (136 | ) | (253 | ) | ||||
| Free cash flow | 3,123 | 4,163 | 4,009 | ||||||
| Borrowings (repayment) of debt related to financing activities | 41 | (83 | ) | (3,983 | ) | ||||
| Changes in short and long-term financial debt | 1,104 | 5,947 | 1,778 | ||||||
| Dividends paid and changes in non-controlling interests and reserves | (4,327 | ) | (3,746 | ) | (4,231 | ) | |||
| Effect of changes in consolidation area and exchange differences | 10 | (16 | ) | (50 | ) | ||||
| NET CASH FLOW | (49 | ) | 6,265 | (2,477 | ) | ||||
| Change in net borrowings (euro million) |
| 2011 | 2012 | 2013 | |||||||
| Free cash flow | 3,123 | 4,163 | 4,009 | ||||||
| Net borrowings of acquired companies | (2 | ) | (21 | ) | |||||
| Net borrowings of divested companies | (192 | ) | 12,446 | (16 | ) | ||||
| Exchange differences on net borrowings and other changes | (517 | ) | (340 | ) | 342 | ||||
| Dividends paid and changes in non-controlling interest and reserves | (4,327 | ) | (3,746 | ) | (4,231 | ) | |||
| CHANGE IN NET BORROWINGS | (1,913 | ) | 12,521 | 83 | |||||
| > Pro-forma adjusted EBITDA EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization charges) on an adjusted basis is calculated by adding amortization and depreciation charges to |
adjusted operating profit, which is also modified to take into account the impact associated with certain derivatives instruments as detailed below. This performance indicator includes the adjusted EBITDA of Eni’s wholly | owned subsidiaries and Eni’s share of adjusted EBITDA generated by certain associates which are accounted for under the equity method for IFRS purposes. Management believes that the EBITDA pro-forma adjusted is an |
- 44 -
Contents
Eni in 2013 Financial information
| important alternative
measure to assess the performance of Eni’s Gas &
Power Division, taking into account evidence that this
Division is comparable to European utilities in the gas
and power generation sector. This measure is provided in
order to assist investors and financial analysts in
assessing the divisional performance of Eni Gas &
Power, as compared to its European peers, as EBITDA is
widely used as the main performance indicator for
utilities. The EBITDA pro-forma adjusted is a non-GAAP
measure under IFRS. > Production sharing agreements (PSA) > Possible reserves > Probable reserves > Proved reserves |
regulations, prior to the
time at which contracts providing the right to operate
expire, unless evidence indicates that renewal is
reasonably certain, regardless of whether deterministic
or probabilistic methods are used for the estimation. The
project to extract the hydrocarbons must have commenced
or the operator must be reasonably certain that it will
commence the project within a reasonable time. Existing
economic conditions include prices and costs at which
economic producibility from a reservoir is to be
determined. The price shall be the average price during
the 12-month period prior to the ending date of the
period covered by the report, determined as an unweighted
arithmetic average of the first-day-of-the-month price
for each month within such period, unless prices are
defined by contractual arrangements, excluding
escalations based upon future conditions. Reserves are
classified as either developed and undeveloped. Proved
developed oil and gas reserves are reserves that can be
expected to be recovered through existing wells with
existing equipment and operating methods or in which the
cost of the required equipment is relatively minor
compared to the cost of a new well, and through installed
extraction equipment and infrastructure operational at
the time of the reserves estimate if the extraction is by
means not involving a well. Proved undeveloped oil and
gas reserves are reserves of any category that are
expected to be recovered from new wells on undrilled
acreage, or from existing wells where a relatively major
expenditure is required for recompletion. > Recoverable reserves > Reserves |
infrastructure operational
at the time of the reserves estimate; (ii) undeveloped
reserves: oil and gas expected to be recovered from new
wells, facilities and operating methods. > Reserve replacement ratio > Average reserve life index > Resource base > Take-or-pay > Conversion |
- 45 -
Contents
Eni in 2013 Directors and officers
 Was born in 1964 and has been Chairman of the Board of Eni since May 2011. He is also member of the Board of Directors and the Internal Control and Risk Committee of Exor SpA; Director of GE Capital Interbanca SpA and member of the Massachusetts Institute of Technology E.I. External Advisory Board. He is also member of the Italian Corporate Governance Committee, the Executive Committees of Confindustria (where he chairs the Foreign Investment Committee), Assonime (Association of Italian Joint Stock Companies), Aspen Institute Italia; member of the Board of Directors of FEEM-Eni Enrico Mattei Foundation, of the Italian Institute of Technology and of the LUISS Business School Advisory Board. He is Co-Chair of the Italy-China Foundation, Co-Chair of the B20 Task Force on Improving Transparency and Anti-Corruption and Director of the World Economic Forum Partnering Against Corruption Initiative. He graduated in Engineering at the Polytechnic of Turin. In 1989 he started his career as entrepreneur at Recchi SpA, a general contractor active in 25 Countries in the construction of high tech public infrastructure. Since 1994 he has served as Executive Chairman of Recchi America Inc, the US branch of the Group. In 1999 he joined General Electric, where he held several managerial positions in Europe and in the USA. He served as Director of GE Capital Structure Finance Group; Managing Director for Industrial M&A and Business Development of GE EMEA; President & CEO of GE Italy. Until May 2011 he was President & CEO of GE South Europe. Until March 2014, he was member of the European Advisory Board of Blackstone. Mr. Recchi has been member of the Honorary Committee for the Rome Candidacy to the 2020 Olympic Games, member of the Board of Permasteelisa SpA Advisory Board member of Invest Industrial (private equity) and visiting Professor in Structured Finance at Turin University.
Has been Chief Executive Officer of Eni since June 2005. He is currently a Non-Executive Director of Assicurazioni Generali, Non-Executive Deputy Chairman of London Stock Exchange Group, Non-Executive Director of Veolia Environnement. Besides is in the Board of Overseers of Columbia Business |
School and
Fondazione Teatro alla Scala. After graduating in
economics at the Università Luigi Bocconi in Milan in
1969, he worked for three years at Chevron, before
obtaining an MBA from Columbia University, New York, and
continuing his career at McKinsey. In 1973 he joined
Saint Gobain, where he held a series of management
positions in Italy and abroad, until his appointment as
head of the Glass Division in Paris. From 1985 to 1996 he
was Deputy Chairman and Chief Executive Officer of
Techint. In 1996 he moved to the UK and was Chief
Executive Officer of Pilkington until May 2002. From May
2002 to May 2005 he was Chief Executive Officer and Chief
Operating Officer of Enel. In 2005 and in 2006 he was
Chairman of Alliance Unichem. In May 2004 he was
appointed Cavaliere del Lavoro of the Italian Republic.
In June 2013 he was made a Commandeur of the Legion of
Honour.
Was born in Murazzano (Cuneo) in 1941
and has been a Director of Eni since May 2011. He
graduated in Economics and Business at the Università
degli Studi of Turin. He is a registered public auditor.
He is currently Chairman of the Board of Statutory
Auditors of Rai SpA, Natuzzi SpA, Difesa Servizi SpA,
Rainet SpA; effective Statutory Auditor of Rai
Pubblicità SpA and Director of Arcese Trasporti SpA. He
was teacher of Finance, Administration and Control at the
Isvor Fiat SpA training institute. |
 Was born in Turin in 1948 and has been a Director of Eni since May 2011. He is currently a founding partner of Tokos Srl, consulting firm for securities investment, Chairman of Società Metropolitana Acque Torino SpA, Director of Ersel SIM SpA, Millbo SpA and Sicme Motori Srl. He began his career at SAIAG SpA, in the Administration and Control area. In 1975 he joined Fiat Iveco SpA where he held a series of positions: Controller of Fiat V.I. SpA, Head of Administration, Finance and Control, Head of Personnel of Orlandi SpA in Modena (1977-1980) and Project Manager (1981-1982). In 1983 he joined the GFT Group, where he was Head of Administration, Finance and Control of Cidat SpA, a GFT SpA subsidiary (1983-1984), Central Controller of the GFT Group (1984-1988), Head of Finance and Control of the GFT Group (1989-1994) and Managing Director of GFT SpA, with ordinary and extraordinary powers over all operating activities (1994-1995). In 1995 he was appointed Chief Executive Officer of SCI SpA, where he oversaw the restructuring process. In 1998 he was appointed Central Manager and, subsequently, Director of Ersel SIM SpA, until June 2000. In 2000 he became Central Manager of Planning and Control at the Ferrero Group and General Manager of Soremartec, the technical research and marketing company of the Ferrero Group. In May 2003 he was appointed CFO of the Coin Group. In 2006 he became Central Corporate Manager at Lavazza SpA, becoming member of the Board of Directors from 2008 to June 2011.
Was born in Verbania in 1969 and has been a Director of Eni since June 2008. He is a qualified lawyer specializing in penal and administrative law, counselor in the Supreme Court and superior jurisdictions. He has been Chairman of the Board of Directors of Finpiemonte partecipazioni SpA since August 2010. He acts as a consultant to government agencies and business organizations on business, corporate, administrative and local government law. He was Mayor of Baveno (Verbania) from April 1995 to June 2004 and Chairman of the Assembly of Mayors of Con.Ser.Vco from September 1995 to June 1999. Until June 2004 he was a member of the Assembly of Mayors of the Asl 14 health authority, the steering committee of the Verbania health |
(*) Appointed by the Ordinary Shareholders’ Meeting held on May 5, 2011, for a three-year period. The Board of Directors appointed Paolo Scaroni Chief Executive Officer. The Board mandate will expire with the shareholders’ meeting approving the financial statements for the year ending December 31, 2013.
- 46 -
Contents
Eni in 2013 Directors and officers
| district, the
Assembly of Mayors of the Valle Ossola waste water
consortium, the Assembly of Mayors of the Verbania social
services consortium. From April 2005 to January 2008 he
was a member of the Stresa city council. From October
2001 to April 2004 he was a Director of CIM SpA of Novara
(merchandise interport center) and from December 2002 to
December 2005 Director and executive committee member of
Finpiemonte SpA. From June 2005 to June 2008 he was a
Director of Consip SpA. He was Provincial Councillor in
charge of balance, property, legal affairs and production
activities and Vice-President of the Province of
Verbano-Cusio-Ossola from June 2009 to October 2011. He
was Director of the Provincial Board of the Province of
Verbano-Cusio-Ossola from October 2011 to November 2012.
Was born in Pescara in 1949 and has been a Director of Eni since May 2011. He graduated in law at the Università degli Studi "Gabriele D’Annunzio" of Chieti and Pescara. He has been Chairman of Italimmobili Srl since 2011. In 1976 he was hired by Banca Nazionale del Lavoro (BNL) where he held a series of positions: Head of the "Overdrafts Advisory" of BNL in Busto Arsizio (1982), Deputy Manager for the industrial division at the BNL branch in Ravenna (1983-1987), Area Chief of BNL in Venice (1987-1989) and Joint Manager of the central office of BNL in Rome (1989-1990). In 1990 he was appointed commercial manager at Banca Popolare and in 1994 he moved, with the same position, to Cassa di Risparmio di Ravenna Group (Carisp Ravenna and Banca di Imola). From 2001 to 2006 he was Chief Secretary to the Under-Secretary of Defence, where he was mainly involved in the Department’s contacts with industry and international relations. From 2008 to 2011 he was Chief Secretary at the Minister of Defence. From 2003 to 2006 he was a Director of Fintecna SpA and from 2005 to 2008 a Director of Finmeccanica SpA.
Was born in Genoa in 1957 and has been Director of Eni since May 2011. He graduated in Business Administration at the Università Luigi Bocconi of Milan. He is currently Chairman of Banca Monte dei Paschi di Siena, of Appeal Strategy & Finance Srl and member of the Supervisory Board of Sberbank. He is also member of the Board of Directors of the Bocconi University in Milan. He began his career in 1977 at the Banco Lariano, becoming Branch Manager in Milan. In 1987 he joined McKinsey where he was Project Manager in the strategy area |
for the
finance sector. In 1989 he was appointed Head of
relations with financial institutions and integrated
development projects at Bain, Cuneo e Associati firm (now
Bain & Company). In 1991 he left the field of company
consultancy to join RAS, Riunione Adriatica di Sicurtà,
where he was given responsibility, as General Manager,
for the banking and parabanking sectors. He was also in
charge of the yield increase of that company’s bank
and of the other Group companies operating in the field
of asset management. In 1994 he joined Credito Italiano
as Joint Central Manager, with responsibility for
Programming and Control, becoming General Manager in
1995. In 1997 he was appointed Chief Executive Officer of
Credito Italiano and subsequently of Unicredit, a
position he held until September 2010. On an
international level he was Chairman of the European
Banking Federation and Chairman of the IMC Washington. In
May 2004 he was decorated as Cavaliere del Lavoro.
Was born in Ferrara in 1945 and has been a Director of Eni since May 2002. He graduated in Economics and Business at the Università Luigi Bocconi of Milan. He is Chairman of Confimprese, Chairman of Bioenergy C.G. and Director of Mondadori SpA. After graduating he joined Chase Manhattan Bank. In 1974 he was appointed manager of Saifi Finanziaria (Fiat Group) and from 1976 to 1991 he was a partner and Country Mgr of Egon Zehnder. In this period he was appointed Director of Lancôme Italia and of companies belonging to the RCS Corriere della Sera Group and the Versace Group. From 1995 to 2007 he was Chairman and Chief Executive Officer of McDonald’s Italia. He was also Chairman of Sambonet SpA and Kenwood Italia SpA, a founding partner of Eric Salmon & Partners, Chairman of the American Chamber of Commerce, General Director of Italian Heritage and Antiquities in the Ministry of Cultural Heritage and Activities and Chairman of Convention Bureau Italia SpA. He was also Extraordinary Commissioner of Cirio Del Monte. He was decorated as a Cavaliere del Lavoro in June 2002.
Was born in Genoa in 1940 and has been a Director of Eni since June 2008. He is currently Vice Chairman of Banca CR Firenze SpA (Cassa di Risparmio di Firenze SpA). He is also a Director and member of the Executive Committee of Rimorchiatori Riuniti SpA. He started working in 1959 in a stock brokerage in Milan; from 1965 to 1982, he worked at Banco |
di Napoli as
deputy manager of the stock market and securities
department. He held a series of managerial positions in
the asset management field, notably as manager of
securities funds at Eurogest from 1982 to 1984, and
General Manager of Interbancaria Gestioni from 1984 to
1987. After moving to the Prime Group (1987 to 2000), he
was Chief Executive Officer of the parent company for a
long period. He was Director of ERSEL S.I.M., member of
the steering council of Assogestioni and of the Corporate
Governance Committee for listed companies formed by Borsa
Italiana. He was a Director of Enel from October 2000 to
June 2008. BOARD
COMMITTEES BOARD OF STATUTORY AUDITORS EXTERNAL AUDITORS GROUP OFFICERS |
- 47 -
Contents
Eni in 2013 Directors and officers
| > Remuneration1 The Eni Remuneration Policy is defined consistently with the recommendations of the Borsa Italiana Code as transposed in the Eni Code. It is approved by the Board of Directors following a proposal by the Compensation Committee, made up of non-executive, independent Directors, and is |
defined in accordance with
the governance model adopted by the Company and with the
recommendations of the Corporate Governance Code. This Policy is designed to align the interests of management with the prime objective of creating sustainable value for shareholders over the medium/long-term, in accordance |
with the guidelines defined
in the Strategic Plan of the Company. The table describes the main elements of the approved 2014 Guidelines for the remuneration of the Chief Executive Officer, of the Chief Operating Officers of Eni’s Divisions and other Managers with strategic responsibilities (MSR). |
||
| Remuneration Policy 2014 |
| Component | Purpose and characteristics | Conditions for the implementation | Values |
| Fixed remuneration | Values the expertise, experience and complexity required by the assigned role | Setting of the remuneration levels through benchmarks consistent with the characteristics of Eni and the assigned roles | CEO/GM: 1,430,000
Euro per year (amount unchanged since 2005) MSR: remuneration set based on the assigned role with possible adjustments in relation to annual competitive positioning (average market values) settings |
| Annual variable incentives | Promotes the achievement of annual budget
targets Beneficiaries: the whole management team |
2014 CEO targets: - Cash flow - Ebit (40%) - Implementation of strategic guidelines (30%) - Divisions’ operating performance (20%) - Sustainability (10%) MSR targets: business and individual targets based on those of the CEO/GM and the assigned responsibilities Incentives paid on the basis of the results achieved in the previous year and evaluated according to a performance scale 70÷130 points1, with a minimum threshold for the incentive equal to an overall performance of 85 points Clawback in cases of violation of company or legal rules and regulations |
CEO/GM: level of incentive target equal to 110%
of fixed remuneration (min 87.5% and max 155%) MSR: levels of incentive targets differentiated according to the assigned role, up to a maximum of 60% of the fixed remuneration |
| Deferred Monetary Incentives | Promotes
the growth of profitability of the business over the
long-term Beneficiaries: managerial resources who have achieved their annual targets |
EBITDA
performance measured relative to the value of the Planned
EBITDA Incentives awarded on the basis of the EBITDA results achieved during the previous year according to a performance scale of 70÷1301 Incentives paid as a percentage varying between zero and 170% of the amounts assigned, according to the average of the annual results achieved during the vesting period, according to an annual performance scale of 70÷1701 Three-year vesting Clawback in cases of violation of company or legal rules and regulation |
CEO/GM:
incentive to be awarded for targets (the third and last
awarding) equal to 55% of the fixed remuneration (min
38.5% and max 71.5%) MSR: incentives awarded based on targets differentiated according to the assigned role, up to a maximum of 40% of the fixed remuneration |
| Long-Term Monetary Incentives | Promotes the alignment with shareholder
interests and the sustainability of value creation in the
long-term Beneficiaries: Key managerial roles for the Business |
Performance measured in terms of variation of
the TSR parameters2 (60%) and Net Present
Value of proved reserves2 (40%), compared to
the variation achieved by the companies of a peer group
of reference (Exxon, Chevron, Shell, BP, Total, Repsol) Incentives paid as a percentage varying between zero and 130% of the amounts awarded, according to the average of the annual positioning achieved during the vesting period: 1° Place 130% 2° Place 115% 3° Place 100% 4° Place 85% ——————————————————————————————————— 5° Place 70%5 6° Place 0% 7° Place 0% Three-year vesting Clawback in cases of violation of company or legal rules and regulations |
CEO3: incentive to be awarded for
targets in relation to a restructuring of the
remuneration provided by Law No. 98/2013 MSR: incentives awarded based on targets differentiated according to the assigned role, up to a maximum of 75% of the fixed remuneration |
| Benefits | Completing the
salary package following a total reward logic by means of
predominantly social security and welfare benefits Beneficiaries: the whole management team |
Conditions defined by the national collective labor agreements and the complementary company agreements applicable to senior managers | Supplementary
pension Supplementary health care Insurance coverage Car for business and personal use |
(1) Performance rated below the minimum threshold (70 points) is considered equal to zero. (2) The Total Shareholder Return is an indicator that measures the overall return of a stock investment, taking into consideration both the price change and the dividends paid and reinvested in the same stock, in a specific period. The Net Present Value of the proved reserves is an indicator that represents the present value of the future cash flows of proved reserves, net of future production and development costs and related taxes. (3) Incentive to be awarded to the new CEO in relation to the decisions that will be taken by the Board of Directors. (4) The minimum incentive threshold requires both indicators to be ranked among the first five in at least one year of the three-year vesting period. |
| Pursuant to Article
84-quater of Consob Decision No. 11971 of May 14, 1999,
and subsequent modifications, the following table below
reports individual remuneration paid in 2012 to each
Member of the Board of Directors, Statutory Auditors, and
Chief Operating Officers. The overall amount earned by
other Managers with strategic responsibilities is
reported too. In compliance with the rule, the table provides details on: • "Fixed remuneration" which includes, on an accrual basis, fixed remuneration and fixed salary contractually agreed, gross of social security and tax expenses to be paid by the |
employee; it excludes
lump-sum expense reimbursements and attendance fees, as
they are not envisaged; • "Committees membership remuneration" which reports, on an accrual basis the compensation due to the Directors for participation to the Committees established by the Board; • "Variable non-equity remuneration - Bonuses and other incentives" which reports the incentives paid during the year due to the vesting of the relative awards following the assessment and approval of the relative performance results by the |
relevant company bodies, in
accordance with that detailed in the Table "Monetary
incentive plans for Directors, Chief Operating Officers,
and other Managers with strategic responsibilities";
the column "Profit sharing", does not include
any amounts, as no form of profit-sharing is envisaged; • "Non-monetary benefits" which report, on an accrual and taxable basis, the value of fringe benefits awarded; • "Other remuneration" reports, the criteria of competence, any other remuneration deriving from other services provided; |
(1) For detailed information on Eni’s remuneration policy and compensation see the “Remuneration Report 2014” available on Eni’s website under the sections “Governance” and “Investor relations”.
- 48 -
Contents
Eni in 2013 Directors and officers
| • "Fair value of equity remuneration". Currently the Company is not adopting any scheme of stock based compensation which reports the fair value of competence of the year related to the existing stock option plans, | estimated in accordance with
international accounting standards which assign the
relevant cost in the vesting period; • "Severance indemnities for end of office or termination of employment" which |
reports the indemnities accrued, for the terminations which occurred during the course of the reporting period considered or in relation to the end of the office and/or employment. | ||
| Remuneration paid to Directors, Statutory Auditors, Chief Operating Officers, and other Managers with strategic responsibilities |
| (euro thousand) | Variable
non-equity remuneration |
|||
Name |
Office |
Term of
office |
Office
expiry (*) |
Fixed
remuneration |
Committee
membership remuneration |
Bonuses and
other incentives |
Profit
sharing |
Non-monetary
benefits |
Other
remuneration |
Total 2013 |
Fair Value
of equity remuneration |
Severance
indemnity for end of office or termination of employment |
||||||||||||
| Board of Directors | ||||||||||||||||||||||||
| Giuseppe Recchi | Chairman | 01.01 - 31.12 | 04.2014 | 765 | 452 | 4 | 1,221 | |||||||||||||||||
| Paolo Scaroni | CEO and General Manager | 01.01 - 31.12 | 04.2014 | 1,430 | 3,110 | 15 | 4,555 | |||||||||||||||||
| Carlo Cesare Gatto | Director | 01.01 - 31.12 | 04.2014 | 115 | 50 | 20 | 185 | |||||||||||||||||
| Alessandro Lorenzi | Director | 01.01 - 31.12 | 04.2014 | 115 | 59 | 20 | 194 | |||||||||||||||||
| Paolo Marchioni | Director | 01.01 - 31.12 | 04.2014 | 115 | 50 | 20 | 185 | |||||||||||||||||
| Roberto Petri | Director | 01.01 - 31.12 | 04.2014 | 115 | 36 | 20 | 171 | |||||||||||||||||
| Alessandro Profumo | Director | 01.01 - 31.12 | 04.2014 | 115 | 45 | 20 | 180 | |||||||||||||||||
| Mario Resca | Director | 01.01 - 31.12 | 04.2014 | 115 | 45 | 20 | 180 | |||||||||||||||||
| Francesco Taranto | Director | 01.01 - 31.12 | 04.2014 | 115 | 50 | 20 | 185 | |||||||||||||||||
| Board of Statutory Auditors | 435 | 435 | ||||||||||||||||||||||
| Chief Operating Officers | ||||||||||||||||||||||||
| Claudio Descalzi | E&P Division | 01.01 - 31.12 | 04.2014 | 774 | 1,495 | 13 | 606 | 2,888 | ||||||||||||||||
| Angelo Fanelli | R&M Division | 01.01 - 31.12 | 04.2014 | 585 | 651 | 14 | 1,250 | |||||||||||||||||
| Other Managers with strategic responsibilities (**) |
5,583 | 5,406 | 144 | 225 | 11,358 | |||||||||||||||||||
| 10,377 | 335 | 11,254 | 190 | 831 | 22,987 | |||||||||||||||||||
| (*) The term
of office expires with the Shareholders’ Meeting
approving the financial statements for the year ending
December 31, 2013. (**) Managers who were permanent members of the Company’s Management Committee, during the course of the year together with the Chief Executive Officer and Division Chief Operating Officers, and those who report directly to the Chief Executive Officer (twelve managers). |
The following table sets out long-term variable components.
| Bonuses of the year | Bonuses of previous years | Other bonuses | ||||
| Name | Office | (euro thousand) | paid/ payable |
deferred | deferral period | no longer payable | paid/ payable (a) |
still deferred |
| Giuseppe Recchi | Chairman | 452 | ||||||||||||||
| Paolo Scaroni | CEO and General Manager | 2,088 | 3,039 | - | 2,501 | 1,022 | 6,384 | |||||||||
| Claudio Descalzi | Chief Operating Officer E&P Division | 988 | 1,125 | 347 | 357 | 1,415 | 150 | |||||||||
| Angelo Fanelli | Chief Operating Officer R&M Division | 399 | 504 | 244 | 252 | 968 | ||||||||||
| Other Managers with strategic responsibilities (b) |
3,460 | 3,661 | - | 1,467 | 1,446 | 6,257 | 500 | |||||||||
| 7,387 | 8,329 | - | 4,559 | 3,077 | 15,024 | 650 | ||||||||||
| (a) Payment
relative to the deferred monetary incentive awarded in
2010. (b) Managers who were permanent members of the Company’s Management Committee, during the course of the year together with the Chief Executive Officer and Division Chief Operating Officers, and those who report directly to the Chief Executive Officer (twelve managers). |
| > Overall remuneration of key management personnel Remuneration of persons responsible of key positions in planning, direction and control functions of Eni Group companies, including executive and non-executive Directors, Chief Operating Officers and other managers with strategic responsibilities in charge at December 31, 2013, amounted to euro 38 million, as described in the table below: |
|
||||
| (euro million) | 2013 |
||||
| Fees and salaries | 25 | ||||
| Post employment benefits | 2 | ||||
| Other long-term benefits | 11 | ||||
| 38 | |||||
- 49 -
Contents
Eni in 2013 Investor information
Investor information
| > Eni share performance in 2013 In accordance with Article 5 of the By-laws, the Company’s share capital amounts to euro 4,005,358,876.00, fully-paid, and is represented by 3,634,185,330 ordinary registered shares without indication of par value. In the last session of 2013, the Eni share price, quoted on the Italian Stock Exchange, was euro 17.49, down 4.6 percentage points |
from the price quoted at the
end of 2011 (euro 18.34). The Italian Stock Exchange is
the primary market where the Eni share is traded. During
the year the FTSE/MIB index, the basket including the 40
most important shares listed on the Italian Stock
Exchange, increased by 16.6 percentage points. At the end of 2013, the Eni ADR listed on the NYSE was $48.49, down 1.3% compared to the price registered in the last session of |
2012 ($49.14). One ADR is
equal to two Eni ordinary shares. In the same period the S&P 500 index increased by 29.6 percentage points. Eni market capitalization at the end of 2013 was euro 63.4 billion (euro 66.4 billion at the end of 2012), confirming Eni as the first company for market capitalization listed on the Italian Stock Exchange. Shares traded during the year totaled |
| Share information |
| 2011 | 2012 | 2013 | ||||||
| Market quotations for common stock on the Mercato Telematico Azionario (MTA) | ||||||||
| High | (euro) | 18.42 | 18.70 | 19.48 | ||||
| Low | 12.17 | 15.25 | 15.29 | |||||
| Average daily close | 15.95 | 17.18 | 17.57 | |||||
| Year-end close | 16.01 | 18.34 | 17.49 | |||||
| Market quotations for ADR on the New York Stock Exchange | ||||||||
| High | (US $) | 53.74 | 49.44 | 52.12 | ||||
| Low | 32.98 | 36.85 | 40.39 | |||||
| Average daily close | 44.41 | 44.24 | 46.68 | |||||
| Year-end close | 41.27 | 49.14 | 48.49 | |||||
| Average daily traded volumes | (million of shares) | 22.85 | 15.63 | 15.44 | ||||
| Value of traded volumes | (euro million) | 355.0 | 267.0 | 271.4 | ||||
- 50 -
Contents
Eni in 2013 Investor information
| almost 3.9 billion, with a daily average of shares traded of 15.4 million (15.6 million | in 2012). The total trade value of Eni shares amounted to approximately euro 68 | billion (euro 68 billion in 2012), equal to a daily average of euro 271 million. |
| Summary financial data |
| 2011 | 2012 | 2013 | ||||||
| Net profit - continuing operations | ||||||||
| - per share (a) | (euro) | 1.90 | 1.16 | 1.42 | ||||
| - per ADR (a) (b) | (USD) | 5.29 | 2.98 | 3.77 | ||||
| Adjusted net profit - continuing operations | ||||||||
| - per share (a) | (euro) | 1.92 | 1.97 | 1.22 | ||||
| - per ADR (a) (b) | (USD) | 5.35 | 5.06 | 3.24 | ||||
| Leverage | 0.46 | 0.25 | 0.25 | |||||
| Coverage | 15.4 | 11.9 | 8.9 | |||||
| Current ratio | 1.1 | 1.4 | 1.5 | |||||
| Debt coverage | 51.3 | 79.8 | 71.1 | |||||
| Dividends pertaining to the year | (euro per share) | 1.04 | 1.08 | 1.10 | ||||
| Pay-out | (%) | 55 | 50 | 77 | ||||
| Dividend yield (c) | (%) | 6.6 | 5.9 | 6.5 | ||||
| TSR | 5.1 | 22.0 | 1.3 | |||||
| (a) Fully
diluted. Ratio of net profit and average number of shares
outstanding in the period. Dollar amounts are converted
on the basis of the average EUR/USD exchange rate quoted
by ECB for the period presented. (b) One American Depositary Receipt (ADR) is equal to two Eni ordinary shares. (c) Ratio of dividend for the period and the average price of Eni shares as recorded in December. |
Dividends
| Management intends to
propose to the Annual Shareholders’ Meeting
scheduled on May 8, 2014, the distribution of a dividend
of euro 1.10 per share for fiscal year 2013, of which
euro 0.55 was already paid as interim dividend in
September 2013. Total cash outlay for the 2013 dividend is expected at approximately euro 3.95 billion (including euro 1.99 billion already paid in September 2013) if the Annual Shareholders’ Meeting approves the annual dividend. In future years, management expects to continue paying interim dividends for each |
fiscal year, with the
balance to the full-year dividend to be paid in each
following year. Eni intends to continue paying interim
dividends in the future. Holders of ADRs receive their dividends in US dollars. The rate of exchange used to determine the amount in dollars is equal to the official rate recorded on the date of dividend payment in Italy (May 22, 2014). On ADR payment date, Bank of New York Mellon pays the dividend less the amount of any withholding tax under Italian law (currently 27%) to all Depository Trust |
Company Participants,
representing payment of Eni SpA’s gross dividend. By submitting to Bank of New York Mellon certain required documents with respect to each dividend payment, US holders of ADRs will enable the Italian Depositary bank and Bank of New York Mellon as ADR Depositary to pay the dividend at the reduced withholding tax rate of 15%. US shareholders can obtain relevant documents as well as a complete instruction packet to benefit from this tax relief by contacting Bank of New York Mellon at 201-680-6825. |
- 51 -
Contents
Eni in 2013 Investor information
Publications
|
| 1 | Annual Report 2013 a comprehensive report on Eni’s activities and financial and sustainability results for the year. | set of operating and financial statistics. | the section Publications
(http://www.eni.com/en_IT/documentation/ documentation.page?type=bil-rap&home_2010_ en_tab=header_tools). Shareholders may receive a hard copy of Eni’s publications, free of charge, by filling in the request form found in the section Publications or through an email request addressed to segreteriasocietaria.azionisti@eni.com or to investor.relations@eni.com. Any other information relevant to shareholders and investors can be found at Eni’s website under the “Investor Relations” section. |
|||||||
| 4 | Remuneration Report 2014 a report on Eni’s compensation and remuneration policies pursuant to rule 123-ter of Legislative Decree No. 58/1998. | |||||||||
| 2 | Annual Report on Form 20-F 2013 a comprehensive report on Eni’s activities and results to comply with the reporting requirements of the US Securities Exchange Act of 1934 and filed with the US Securities and Exchange Commission. | |||||||||
| 5 | Corporate Governance Report 2013 a report on the Corporate Governance system adopted by Eni pursuant to rule 123-bis of Legislative Decree No. 58/1998. | |||||||||
| 3 | Fact Book 2013 a report on Eni’s businesses, strategies, objectives and development projects, including a full | |||||||||
| These and other Eni publications are available on Eni’s internet site eni.com, in | ||||||||||
| Financial calendar | ||||||||||
| The dates of the Board of Directors’ meetings to be held during 2014 in order to approve/review the Company’s quarterly and semi-annual, and annual preliminary results are the following: | Results for the first quarter of 2014 | April 28, 2014 |
| Results for the second quarter and the first half of 2014 and proposal of interim dividend for the financial year 2014 | July 31, 2014 | |
| Results for the third quarter of 2014 | October 30, 2014 | |
| Preliminary full-year results for the year ending December 31, 2013 and dividend proposal for the financial year 2014 | February 2015 | |
| A press release on quarterly results is disseminated to the market the following day, when management also hosts a conference call with financial analysts to review the Group performance. | ||
- 52 -
Contents
Contents
Contents
Contents
Table of Contents
Eni Shareholders approve 2013 Financial Statements and appoints the Company Officers at Annual Meeting
- 2013 net profit euro 4.41 billion
- Total dividend per share for 2013 of euro 1.10
- Authorization to the Board of Directors to acquire treasury shares
- Article 16.2 of company by-laws amended
- Appointment of the Directors and the Statutory Auditors
- Approval of the Long-Term Monetary Incentive Plan (2014-2016)
- Remuneration Report approved
| Rome, May 8, 2014 - The Ordinary and Extraordinary Meeting of Eni’s Shareholders which was held today, resolved the following: |
| • | to approve the financial statements at December 31, 2013 of Eni SpA which report a net profit amounting to 4,409,777,928.34 euro; | |||
| • | to allocate the net profit for the period of 4,409,777,928.34 euro, of which 2,417,239,554.69 euro remains following the distribution of the 2013 interim dividend of 0.55 euro per share, resolved by the Board of Directors on September 19, 2013, as follows: | |||
| - | an amount of 176,184,575.82 euro to the reserve required by Article 6, paragraph 1, letter a) of Legislative Decree No. 38 of February 28, 2005; | |||
| - | to Shareholders in the form of a dividend of 0.55 euro per share owned and outstanding at the ex-dividend date, excluding treasury shares on that date, thus completing payment of the dividend for the financial year 2013. The total dividend per share for financial year 2013 therefore amounts to 1.10 euro per share; | |||
| • | the payment of the balance of the 2013 dividend in the amount of 0.55 euro, payable on May 22, 2014, with an ex-dividend date of May 19, 2014 and a record date of May 21, 2014; | |||
| • | to cancel, for the portion not yet implemented as of the date of the Shareholders’ Meeting, the authorization to the Board of Directors to acquire treasury shares as resolved by the Shareholders’ Meeting of May 10, 2013; | |||
| • | to authorize the Board of Directors, pursuant to Article 2357 of the Italian Civil Code, to purchase on the Mercato Telematico Azionario – in one or more transactions and in any case within 18 months | |||
- 1 -
Table of Contents
| from the date of this resolution – up to a maximum of 363,000,000 ordinary Eni shares, for a total amount of no more than 6,000,000,000.00 euro, including, respectively, the number and the value of treasury shares purchased subsequent to the Shareholders Meeting of July 16, 2012 authorizing the share buy-back, at a unit price of no less than 1.102 euro and not more than the official price reported by Borsa Italiana for the shares on the trading day prior to each individual transaction, plus 5%, in accordance with the procedures established in the Rules of the Markets organized and managed by Borsa Italiana SpA. In order to respect the limit envisioned in the third paragraph of Article 2357 of the Italian Civil Code, the number of shares to be acquired and the relative amount shall take into account the number and amount of Eni shares already held in the portfolio; | ||||
| • | to approve the amendments to Article 16.2 of the By-laws relating to the single call of the Shareholders’ Meeting; | |||
| • | to set the number of the Directors at nine, set the term of the office of the Directors and of the Chairman of the Board so appointed to three financial years, with this term expiring on the date of the Shareholders’ Meeting convened to approve Eni SpA 2016 Financial Statements and appoint the Board of Directors and the Chairman of the Board. The Directors are: | |||
| - | Emma Marcegaglia, Chairwoman (1)*; | |||
| - | Claudio Descalzi, Director (1); | |||
| - | Andrea Gemma, Director (1)*; | |||
| - | Pietro A. Guindani, Director (2)*; | |||
| - | Karina A. Litvack, Director (2)*; | |||
| - | Alessandro Lorenzi, Director (2)*; | |||
| - | Diva Moriani, Director (1)*; | |||
| - | Fabrizio Pagani, Director (1)*; | |||
| - | Luigi Zingales, Director (1)*; | |||
| • | to set the annual remuneration of the Chairwoman of the Board and of the others Directors at 90,000 euro and 80,000 euro pre-tax, respectively; | |||
| • | to reduce the remuneration of the Directors with delegated powers pursuant to Article 23-bis, paragraph 5-quinquies, of Decree Law No. 201 of December 6, 2011, ratified with Law No. 214 of December 22, 2011, as most recently amended by Article 84-ter of Decree Law No. 60 of June 21, 2013, ratified with amendments with Law No. 98 of August 9, 2013; the remuneration which may be determined by the Board of Directors for the Directors with delegated powers must comply with the criteria pursuant to paragraph 5-quater and 5-sexies of the aforementioned article; also the maximum amount possible payable to the Chief Executive Officer shall also include the remuneration for any eventual business relationship or any other relation with the company or its subsidiaries and affiliates. The remuneration of the Chairwoman, which may be determined by the Board of Directors, cannot exceed 238,000 euro, including the remuneration for the position of Director set by the Shareholders’ Meeting; | |||
| • | to appoint the Statutory Auditors and the Chairman of the Board of Statutory Auditors. The term of office of the Board of Statutory Auditors and of the Chairman of the Board of Statutory Auditors is | |||
- 2 -
Table of Contents
| three financial years, expiring on the date of the Shareholders’ Meeting convened to approve Eni SpA 2016 Financial Statements. The Statutory Auditors are: | ||||
| - | Matteo Caratozzolo, Chairman (2); | |||
| - | Paola Camagli, Effective Auditor (1); | |||
| - | Alberto Falini, Effective Auditor (1); | |||
| - | Marco Lacchini, Effective Auditor (2); | |||
| - | Marco Seracini, Effective Auditor (1); | |||
| - | Stefania Bettoni, Alternate Auditor (1); | |||
| - | Mauro Lonardo, Alternate Auditor (2); | |||
| • | to set the Chairman of the Board of Statutory Auditors’ annual remuneration and of the effective Statutory Auditors at 80,000 euro and 70,000 euro pre-tax, respectively; | |||
| • | to confirm the delegation of authority to the Board to determine the allowance for the Magistrate of the Court of Auditors responsible for monitoring the financial management of Eni; | |||
| • | to approve the Long-Term Monetary Incentive Plan (2014-2016) according to the conditions provided by the informative document available on the Eni website. | |||
In addition Eni’s Shareholders Meeting resolves in favor of the first section of the Remuneration report pursuant to Article 123-ter of the Legislative Decree 58/98.
With reference to the point 4 of the agenda, regarding the amendments to Article 17.3 of the By-laws of Eni SpA and the addition of the new Article 17-bis relating to the integrity requirements and the related grounds for ineligibility and forfeiture for Directors, the Shareholders’ Meeting did not approve the proposal presented.
The curricula of the Directors and Statutory Auditors appointed are available on www.eni.com.
At the present date Claudio Descalzi holds 39,455 Eni shares and Luigi Zingales 1,000 ADR Eni (representing No. 2,000 Eni shares).
Notes
(1) Drawn from the slate of candidates presented by
the shareholder Ministry of Economy and Finance, owning,
directly, the 4.335% of the Eni SpA share capital, voted by the
majority of the shareholders who have participated in the
Shareholders’ Meeting.
(2) Drawn from the slate of candidates presented by a
group of Italian and Foreign Institutional Investors, owning,
jointly, approximately the 0.703% of the Eni SpA share capital,
voted by the minority of the shareholders who have participated
in the Shareholders’ Meeting.
* Candidate who declared to possess the qualification of
independence pursuant to Article 148, paragraph 3 of the
Legislative Decree 58/98 and Article 3 of the Corporate
Governance Code.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +800 11 22 34 56
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
- 3 -
Table of Contents
Eni's Board of Directors
appoints Claudio Descalzi as Chief Executive Officer
and appoints the members of the Board committees
Rome, May 9, 2014 - Eni’s Board of Directors today appointed Claudio Descalzi as Chief Executive Officer and General Manager. In this role he will be responsible for the management of the company, with the exception of specific responsibilities that are reserved for the Board of Directors and those that are not to be delegated according to the current legislation.
While a final decision will be taken at a later date, the Board confirmed Claudio Descalzi as Chief Operating Officer of the Exploration & Production Division.
The Board also deliberated that, in accordance with the Corporate Governance Code for listed companies, the Head of Internal Audit will report to the Board, and on its behalf, to the Chairwoman. In addition, the Chairwoman will carry out her statutory functions as legal representative managing institutional relationships in Italy, together with the CEO.
The Board also ascertained, on the basis of the declarations released by the Directors and of the information available to the Company, that all Directors have the integrity requirements required by current law, that causes for their ineligibility and incompatibility do not exist as required by current law and that the Chairwoman Emma Marcegaglia and the Directors Andrea Gemma, Pietro A. Guindani, Karina Litvack, Alessandro Lorenzi, Diva Moriani and Luigi Zingales have the independence requirements set by law, as quoted by Eni’s By-laws. Also the Directors Gemma, Guindani, Litvack, Lorenzi, Moriani and Zingales have been considered independent by the Board pursuant to the criteria and parameters recommended by the Corporate Governance Code. The Chairwoman Marcegaglia, in compliance with the Corporate Governance Code, cannot be considered independent being a significant representative of the Company.
The Board of Statutory Auditors ascertained the correct application of the assessment criteria and procedures adopted by the Board of Directors to evaluate the independence of its members.
The Board of Directors has also appointed: Pietro A. Guindani (as Chairman), Karina Litvack, Diva Moriani e Alessandro Lorenzi as members of the Compensation Committee, all non-executive and independent, including the Chairman; Guindani has the knowledge and experience in finance or remuneration policies required by the Corporate Governance Code; Alessandro Lorenzi (as Chairman), Andrea Gemma, Karina Litvack and Luigi Zingales as members of the Control and Risk Committee, all non-executive and independent; Lorenzi, Litvack and Zingales have experience in the area of accounting and finance or risk
- 1 -
Table of Contents
management, as requested by the Corporate Governance Code; Andrea Gemma (as Chairman), Diva Moriani, Fabrizio Pagani and Luigi Zingales as members of the Nomination Committee, all non-executive and the majority independent; Fabrizio Pagani (as Chairman), Andrea Gemma, Pietro A. Guindani and Karina Litvack as members of the Sustainability and Scenarios Committee, all non-executive and the majority independent. The Sustainability and Scenarios Committee replaces the Oil & Gas Energy Committee.
The Board also ascertained that the auditors met the requirements of professionalism and honor as set out by the Ministerial Decree No. 162 of March 30, 2000, as specified by Article 28.1 of the By-laws, as well as the independence requirements as set by law and by the Corporate Governance Code.
The curricula of the Directors and Statutory Auditors appointed are available on www.eni.com.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +800 11 22 34 56
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
- 2 -
Table of Contents
Table of Contents
Eni: amendments to 2014 financial calendar
San Donato Milanese (Milan) May 15, 2014 - Eni announces that the meeting of the Board of Directors convened to resolve the distribution of an interim dividend for the year 2014, which was scheduled for September 18, 2014, has been brought forward to September 17, 2014.
The related press release will be issued on September 17, 2014 after the meeting of the Board.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +800 11 22 34 56
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
Table of Contents
Eni: agreement signed with Gazprom on revision of gas supply terms
Saint Petersburg (Russia), May 23, 2014 - Gazprom CEO Alexey Miller and Eni CEO Claudio Descalzi have today signed an agreement to revise the terms of gas supply contracts.
The agreement involves a reduction in supply prices and an important change in the price indexation to fully align it with the market. In addition, in 2014 Eni’s ability to recover gas pre-paid under "take or pay" clauses will be significantly enhanced.
The terms apply retroactively from the start of 2014.
The agreement reached today with Gazprom is a key part of Eni’s effort to renegotiate all third-party long-term gas supply contracts, with the target of achieving a fully competitive portfolio.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +800 11 22 34 56
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
Table of Contents
Eni: Board of Directors approves new organizational structure
- Approval of new structure, which will become operational over the next few weeks
- Confirmed appointment of Manager responsible for preparing the Company’s financial reports
- Confirmed appointment of Head of Internal Audit
- Appointed members of the Watch Structure
Rome, May 28, 2014 - Eni today announces a new organizational structure, which will support the delivery of its strategy based on selective growth in the upstream sector and a turnaround in the mid-downstream segments.
The new organizational structure replaces the divisional model with an integrated operational structure strongly focused on industrial objectives. That means that activities previously managed within E&P, R&M, Versalis and Syndial will be redistributed amongst the following business units:
• Exploration
• Development, Operations and Technology
• Upstream
• Downstream and Industrial
These will join the existing business units of Midstream and Retail Gas & Power.
At the same time, all staff functions will be centralized, with significant benefits in terms of efficiency and executional capability.
The new organizational structure has the following objectives:
• Streamlining decision-making processes
• Increasing the focus on core business activities
• Enhancing key competences
• Increasing efficiency in the downstream and industrial
segment
• Maximizing synergies in staff functions
- 1 -
Table of Contents
Claudio Descalzi, Eni CEO, commented:
"The aim of this new organization is to fully leverage all of Eni’s resources, streamlining structures, avoiding duplications and transforming Eni into an operational company. This will support efficiency gains in terms of time, costs and investments, and will allow us to respond rapidly and flexibly to the business challenges that we are facing".
The new organizational structure will be fully implemented in the next few weeks. Consistently with this structure, from the beginning of 2015 Eni will modify its financial reporting segments, and will present results for the Upstream, Midstream and Downstream business segments.
Eni's Board of Directors has re-confirmed Massimo Mondazzi as the Manager charged with preparing the Company's financial reports pursuant to Article 154-bis of Legislative Decree No. 58/1998, following its consultation with the Nomination Committee and the approval of the Board of Statutory Auditors.
The Board has also re-confirmed the appointment of Marco Petracchini as Head of Internal Audit, subsequent to its consultation with the Board of Statutory Auditors and the Nomination Committee, and the approval of the Audit and Risk Committee.
The Board appointed the following members of the Watch Structure pursuant to Legislative Decree No. 231 of 2001 following its consultation with the Nomination Committee and the approval of the Board of Statutory Auditors: Attilio Befera, external member as Chairman; Ugo Draetta and Claudio Varrone external members. The Board has also confirmed Massimo Mantovani, SEVP General Counsel Legal Affairs Department, Marco Petracchini, SEVP Internal Audit Department and Fabrizio Barbieri, EVP Human Resources and Organization Department, as internal members.
The biographies of the Manager charged with preparing the Company's financial reports, as well as those of the Executive Vice President of the Internal Auditing Department, are available on www.eni.com.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +800 11 22 34 56
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
- 2 -
Table of Contents
Eni: the Board of Directors approves the measures to carry out the program of share repurchases
Rome, May 28, 2014 - Following the approval of the share buyback program at the Shareholders’ Meeting held on May 8, 2014 and announced to the market, the Board of Directors has approved the measures to carry out the program of share repurchases by designating certain financial institutions.
The program represents an effective and flexible management tool for enhancing shareholders’ value, in line with the policies of capital return adopted by major international oil companies.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +800 11 22 34 56
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com