Your SlideShare is downloading. ×
Unlocking value from the sale of Snam
Unlocking value from the sale of Snam
Unlocking value from the sale of Snam
Unlocking value from the sale of Snam
Unlocking value from the sale of Snam
Unlocking value from the sale of Snam
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Unlocking value from the sale of Snam

457

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
457
On Slideshare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Unlocking value from the sale of Snam30 May 201230 May 2012eni.com
  • 2. eni strategy presentation March 2012: our position on Snam“The position of eni’s Board isthat the disposal process willneed to meet three criteria.• First, it will need to be friendlyfor eni’s shareholders, by whichwe mean a deal which recognizesthe full value of our stake inSnamSnam.• Secondly, it will need to protectthe interests of Snam’sshareholders, by limiting theSeparation by September 2013Process evaluated on 3 criteria: Benefits to eni shareholdersP i f h i f Spossible overhang on Snamshares.• Thirdly, it will need tostrengthen eni’s balance sheet in Protection of the interests of Snamshareholders Consolidation of eni balance sheetgview of our extraordinary growthprospects, building onexceptional exploration success”(Strategy Presentation 15/03/12)2
  • 3. Snam transaction meets our three criteria1. Recognises a fairprice for controllingstake in Snam• 3% premium on average 30-day trading price• 5% premium on Snam 2011 RABI li ith DCF l tistake in Snam • In line with DCF valuation 30% of Snam goes to a stable long-term shareholder2. Limits the overhangon Snam shares 30% of Snam goes to a stable, long-term shareholder Remaining eni holding to be sold through transparentand non-discriminatory process Flexibility in terms of timing: no compulsory date tol t i it Full monetization of eni stake in Snamcomplete eni exit3. Strengthens eni’sbalance sheet Full monetization of eni stake in Snam Majority of inflow from CDP by YE 2012, balanceby H1 20133
  • 4. the new eni: increased financial flexibilitybln €Net debt 2011 (PF)Cash inflowfrom CDP2011EBIT 2011~ 18 mld €eniresidualdebt€10.5from CDP€3.5Marketvalueremainingstake 2011 (PF)Deconsolidationof Snam(2.1 mld €)~ 15 9 mld €Snamdebt€11 2stake€2.82011 (PF) ~ 15.9 mld €Free cash flow 2011€11.2eni D/E 2011 0.46xA i di l f tiDeconsolidationof Snam2011 ~ 3.1 mld €0.1 mld €Assuming disposal of entirestake in Snam eni D/E 2011(PF) < 0.20x2011 (PF) ~ 3.2 mld €Excludingproceeds from4Note: Data at year-end 2011pSnam stake
  • 5. the new eni: increased upstream exposureNet capital employed YE2011 Net capital employed YE 2011 (PF)G&PE&P ~48%~ 31% G&PE&P ~58%~ 17%G&PR&M/Chem. ~13%G&PR&M/Chem. ~16%eniE&C ~9%€88bn eniE&C ~11%€73bn• E&P capital employed rising to 58% from 48%• G&P exposure falling from 31% to 17%5• eni ROACE proforma rising from 9.9% to 10.4%
  • 6. The new eni: growth and returnsEnsure appropriate financial strength Maintain adequate gearing in the context of new upstream-focused business modelh l d d l d k l l High liquidity reduces reliance on credit market in volatile environmentContinue to invest in high-return E&P portfolio New project pipeline with IRR of >20% at our oil-price scenario Additional growth potential from world-class exploration discoveriesReward shareholders Robust returns supported by delivery of profitable production growth Robust returns supported by delivery of profitable production growth Launch of new buyback programme to return cash with high flexibility6

×