• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Eni 2012-2015 Strategy Presentation
 

Eni 2012-2015 Strategy Presentation

on

  • 1,853 views

 

Statistics

Views

Total Views
1,853
Views on SlideShare
1,810
Embed Views
43

Actions

Likes
1
Downloads
48
Comments
0

4 Embeds 43

http://www.eni.com 35
http://st-eni.eni.com 5
http://eni.com 2
https://www.eni.com 1

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Eni 2012-2015 Strategy Presentation Eni 2012-2015 Strategy Presentation Presentation Transcript

    • 2012-2015 Strategy15 March 2012eni.com
    • eni: well-positioned to deliver a decade of sustainable growth 2011 2012-2015 2021  Confirmed growth profile  Libya restart  A decade of E&P  Strengthened  Start-up of giants with long plateau sustainable resource base growth  Increased investment in exploration  Improved  Recover profitability in a difficult market  Strong position supply G&P to benefit from  Consolidate competitiveness of supply market  Growth in key markets  Focus on key segments and markets recovery  SelectiveChemicals  Continued efficiency presence in R&M  Streamlined  Integration of refinery system, R&M operations consolidation of marketing  Competitive  Refocusing chemicals portfolio on player in added-value products Chemicals 2
    • E&P: consistent exploration success ...  Sangos-Ngoma  Sankofa (Ghana)  Perla (Venezuela)  Mamba South  Perla (Venezuela)  Jangkrik (Indonesia) (Mozambique) (Angola)  Cabaca Norte (Angola)  Sankofa (Ghana)  Skrugard (Norway)  Kitan (JPDA)  Hadrian Nord (US-GOM)  Area D (Libya)  Cabaca Sud Est  Culzean (UK)  Jangkrik NE (Indonesia)  Heidelberg (US)  Mpungi (Angola)  Lira 1 (Angola)  Gye Nyame 1 (Ghana) 1200 1000 800 2008-2011 ~4bn boe of 600 32 new 31 30 exploration 29 resources 400 200 0 2008 2009 2010 2011 New exploration resources Total exploration resources (mboe) (bboe) 3
    • ... drives organic growth, in the plan period... Production growth kboe/d >3% adj >3% CAGR 2011-15 Russia and Caspian in a higher oil price scenario Sub-Saharan Africa  Strong contribution from exploration successes Far East Latin America  Confirmed focus on giant, conventional projects Europe and North America  Increased exposure to oil North Africa and ME  Best-in-class operating costs  IRR of new projects over 20% 2011 2015 Adjusting for force majeure in Libya in 2012 (180k boe/d) CAGR Brent 2011-13: 90 USD/bl; 2014-15: 85 USD/bl 4
    • ... and beyond Production growth kboe/d ~3% Yamal giants, Kashagan ramp up, further potential from Kashagan development Russia and Caspian Major contribution from Angola Block 15/06 Sub-Saharan Africa and Mozambique, additional exploration potential Far East Latin America Junin 5 & Perla FF developments Europe and North America Resilient contribution driven by Barents Sea North Africa and ME 2015 2021 Price scenario: 85$/bbl 2015; +2%/year afterwards 2015-21 CAGR increased from 2% to 3% 5
    • G&P: positioned to tackle difficult short term scenario...2011 EBITDA pro-forma adjusted*(€ mln) TAG/TENP/Transitgas Marketing: facing difficult scenario  Slower than expected demand growth  Spot/LT differential remains significant in 2012 Marketing Other Snam G&P eni 2012-2015 strategy  Leverage on more competitive supply portfolio to grow marketAsset share in Italy and key Europeandisposed/ marketsto be disposed Regulated/ Low-risk  Further increase exposure to more business resilient retail segment  Capture benefits of market volatility through enhanced trading capabilities  TMPC, TTPC, Greenstream, BSPC, other regulated business Gradual recovery in  Stable profitability and cash flow profitability throughout the plan * Adjusted for outcome of renegotiations and Libya impact 6
    • … and capture medium-term recovery opportunities Long-term scenarioEuropean demand recovery:  Strong European market position EU 27 (bcm) ~18%  Consolidated brand 600 -8%  Expertise in innovative offering structure 550 500  Diversified and flexible supply 450 portfolio 400  Competitive cost position in tightened 350 market 300  Increased equity gas supply 2010 2011 2015 2020 Economic growth  New profit opportunities Energy/environmental policies  Enhanced LNG presence  Cross-regional and cross-commoditiesTightening supply capacity: synergies in trading Increasing Far East demand Increasing MENA domestic gas consumption Declining European domestic production Well positioned to capture Limited LNG capacity for the Atlantic basin additional growth 7
    • R&M: increasing efficiency and complexity  Refining: a cyclical business in a difficult short term scenario  Increased focus on complexity and efficiency Optimisation to benefit from potential scenario recovery & efficiency  EST completion by 2012 + €400m  Increased system integration  Exploit flexibility and asset-backed trading  Marketing: confirming profitability Italian retail  Consolidation of Italian leadership market share  Network enhancement and automation >30%  Expansion of non-oil activities 8
    • Chemicals: a new turnaround strategy Enhanced  Increase revenues from added value products differentation from <30% to >40% Regaining competitiveness within chemicals business  > 10% of revenues from International outside Europe by 2015 expansion  Licensing, production alliances/JVs 2015 target > €400m of EBIT at constant scenario More efficient and integrated  Savings >€200m by 2015 9
    • enhanced value creation opportunities from non-core listed assets Snam GalpSeparation by September 2013 Non-core shareholdingProcess evaluated on 3 criteria: High potential business, with exciting positions in Brazil, Mozambique Benefits to eni shareholders Upside from market value recovery Protection of the interests of Snam shareholders Consolidation of eni balance sheet 10
    • Exploration & ProductionClaudio Descalzieni.com
    • E&P strategic goals and drivers  Strong focus on exploration strategy and execution  Fast time-to-market of exploration discoveriesOrganic growth &  Rapid and efficient development of project pipeline value creation  Effective reservoir management and production optimization activities  Leading-edge technology to fight depletion of giant fields  Consolidate and deploy competencies and technology Managing  Increase direct control of assets through operatorship uncertainties  Maintain geographical diversification  Phase financial exposure in large-scale, complex projects 12
    • HSE results Lost time injury frequency rate* Drilled wells 0.77 437 0.73 0.66 327 250 0.41 0.42 0.41 0.00 0.00 0.00 Avg 2007-2010 2011 2005 2008 2011 Company Contractor Global Drilled wells per year Blow-out frequency (per thousand) * n. of LTI/Mln of worked hours 13
    • exploration objectives Drivers Barents Sea (Norway)  Large upside GoM (USA) Near field exploration Materiality and Pacific gas (Indonesia and Australia)  High potential in profitable gas market cost-effectiveness Short time to market West Africa Focus on  Transform margin play in Ghana, Togo, Liberia emerging basins  Pre-salt play in Angola, Congo, RDC East Africa Gas (Mozambique)  Exploit full potential of tertiary plays in the Rovuma basin Fontier high potential Proven basins/near field Maintaining leadership on discovered volumes and unit exploration costs 14
    • focus on exploration: Norway - Barents sea Discoveries  500 Mbbl of recoverable oil in Skrugard and Havis Havis/Skrugard hub PL226 2012-2015 work program PL608 PL532 Skrugard/Havis  Resources upside in the area: 500 PL533 mboe PL229  8 wells in the Barents Sea: €220m PL529 Goliat equity investments PL657 PL489 PL201 Synergies  Havis/Skrugard hub servicing 50 km radius  Onshore services operated Additional prospectivity not operated  12 blocks for an acreage of 4,600 sqkm  With Statoil, maintain leadership position in the next round 15
    • focus on exploration: Mozambique – Rovuma basin Mamba discovery Area 4  Gas in place estimate at 30 Tcf  High gas quality  Expected rate in production configuration up to 140 mmsfcd Mamba North 1 per well Mamba Tertiary North East 1 proven 2012-2015 work program gas play Mamba South 1  Up to 8 exploration and appraisal wells  2,000 sqkm of 3D and 2,100 sqkm 2D seismic  €400m expected equity investments Synergies  Unitization of Mamba complex with Area 1  Evaluation of additional stand- alone resources in Area 4 16
    • focus on exploration: Pacific Area Discoveries  ~700 Mboe already discovered in Australia and Indonesia 2012-2015 work program  Resources upside: ~500 Mboe BUKAT/ BULUNGAN  24 wells: €300m equity investments North Ganal Arguni 1 JANGKRIK JANGKRIK NE Synergies NT/P68- Heron NT/48-  Indonesia: Jangkrik hub Evans Shoal  Australia: upstream development and synergies with LNG facilities Additional prospectivity  16,000 sqkm of new acreage eni assets New acreage added in 2011 17
    • exploration capex 2012-2015 bln € +~50% 5.5 By area By type 4% 17% 15% 30% 3.6 40% 13% 41% 9% 30% North Africa Sub Saharan Africa Indonesia/Australia America Frontiers plays Europe Others Proven basins 2011-14 2012-15 Near field 18
    • time to market: from resources to production… 2009-2011 Total resources* discoveries bln boe 31.0 32.1 7% Mozambique 38% 55% 2010 2011 < 4 years 5-8 years > 8 years 2P reserves Other reserves/ resourcesBrent 79 111($/boe) 90% with first oil in production in <8 yearsLife index 47 50(years) * P1 + P2 + P3 + contingent resources + risked exploration 19
    • … through identified and solid start-ups Main start-ups Samburskoye Goliat Yaro/Yakhinskoye Skrugard/Havis Urengoskoye Yevo Culzean Severo Kashagan EP Great Hadrian Jasmine area W.Franklin Ph.2 MLE Kashagan Ph.2 CAFC Karachaganak Ph.3 Hadrian El Merk South Wafa compression Sankofa Gye Nyame Perla FF Junin 5 FF Mamba OPL 245 FF Perla EP Brass LNG Junin 5 EP East Hub ALNG Kizomba Sat. Ph.1 Jangkrik West Hub Jau Kutai Basin CBM FF 2012-2015 Beyond 2015 Hubs 4-year plan start-ups: ~700 kboed @ 2015 20
    • Yamal Nenets region: new gas giants Samburgskoye Production (kboed, equity) Samburgskoye Yaro-Yakhinskoye Severo- Chaselskoye Urengoskoye 200  Samburgskoye and Urengoskoye sanctioned in 2011 100  GSA signed with Gazprom  Samburgskoye start up confirmed 2012 0 2011 2013 2015 2017 2019 2021 Samburgskoye Yaro-Yakhinskoye Urengoskoye Severo 21
    • Barents Sea: Goliat first oil development Goliat Production (kboed, equity) Barents Sea 250 200  First oil development in the Barents Sea 150  Subsea templates installation campaign 100 completed in 2011 and ready for drilling 50 0  FPSO delivery in 2013 2011 2013 2015 2017 2019 2021 Norway Barents Sea 22
    • Kazakhstan: near-term growth and significant long-term potential Kazakhstan Production (kboed, equity)  Kashagan EP Karachaganak  Construction completion and commissioning ongoing Kashagan  Tranches 1&2 progress for KCP: 99%, in line with commercial production start up within 2012  Karachaganak 250 200  Previous development phases 150 currently producing >100 kboed equity 100 50  Agreed settlement with Republic of 0 Kazakhstan 2011 2013 2015 2017 2019 2021 Karachaganak Kashagan EP 23
    • Venezuela: super giants with long-term plateau Venezuela Production (kboed, equity) Perla  Perla Junín-5  Gas Sales Agreement and FID for Phase 1 achieved in 2011  Phase 1: construction and installation of three offshore platforms, 60-km pipeline to shore, onshore processing facility  Junìn EP  Finalizing all the major engineering 200 contracts  Seeking anticipated early production in 100 2012, using synergies with PDVSA existing facilities 0 2011 2013 2015 2017 2019 2021 Corocoro Perla Junin 5 24
    • Sub-Saharan: legacy area with further growth prospects Block 15/06 West Hub Production* (kboed, equity) 1000  Development of Sangos, Ngoma, Cinguvu fields (1,250-1,450m water depth) 500  16 wells (10 producers, 6 injectors)  First drilling campaign: ongoing 0 2011 2013 2015 2017 2019 2021  FPSO will be delivered in 1Q 2014 Deepwater LNG Others Mozambique * exploration potential excluded 25
    • investment plan Capex 2012-2015 bln € +14% 44.8 By area By type 1.7 39.1 5.5 22% 25% 1.8 27% 3.6 Mozambique 3.1 39% 10% 13% 33.7 37.6 22% 36% 6% N. Africa/M. East America Onshore Europe Asia Pacific Offshore Central Asia/Russia West Africa Deepwater 2011-14 2012-15 Development Other Exploration 26
    • our commitment: production Organic production growthCAGR ~3% >3%  Strong production growth of over 3% a year to 2015 adjusted for Libya in 2011  Resilient to oil price increases: 2011-2015 CAGR at 100$/bbl ~3%  Long-term growth target 2011 2015 2021 raised from ~2% to ~3% Libya force majeure New production 2012/2013 2014/2015 2015 Brent ($/boe) 90 85 +2% 27
    • our commitment: value Cash flow NPV 2P by areas CF/boe (%) 19% 120 31% 110 100 25% 25% 90 2010 2015 Sub-Saharan Africa North Africa Brent avg Europe & America Asia & Pacific 85 85 ($/boe) Solid cash generation 28
    • Gas & PowerUmberto Vergineeni.com
    • European gas market: a difficult short term environment… Supply Demand  Increasing capacity from  Weak economic situation in Russia (North Stream) Europe impacting industrial clients  Availability of lower-priced make up gas  Increased competition in powergen from renewable  No additional LNG capacity sources from Qatar  Relatively stable demand from  Continued domestic production residential customers decrease Persisting oversupply in Europe in the near term Spot-LT price differential remains significant Continuing competitive pressure 30
    • ... gradually rebalancing in the medium term Europe  Demand recovery (+60bcm 2015 Americas vs. 2011) Pacific Basin  Domestic production decline (-17 bcm)  North American  Demand escalation in  Marginal shale gas contribution production continues to emerging markets (+89 expand  Increased interconnectivity opens bcm) new market opportunities (11  Effect of North  New high-cost new projects) American exports liquefaction capacity from limited and subject to Australia (+15 bcm) fully regulatory uncertainty absorbed in the region  Increasing Latin Mena  Premium prices attract American demand for supply from Atlantic spot LNG  Increasing domestic basin consumption in North Africa  Qatari production at 2011 levels Progressive tightening in European market to 2015 Further market improvement beyond 31
    • eni strategy: building on a more competitive supply portfolio … Market Price Flexibility reflectivity • Alignment • Improved and between eni faster Objective cost position responsiveness and average to market costs of supply changes in the market • Foundation for competitive positioning in • Negotiation of • Reduction of Implementation the market market-like minimum prices in long- volumes, term contract possibility to price revisions reopen negotiations if required 32
    • … to grow sales to business customers… B2B volume increase• Dedicated and capillary direct sales (bcm/y) force to grow position in Italy and key +18% European countries 85 85 80• Tailor made offers for different 75 72 segments 70 65• Energy intensive customers 60  Multi-country approach 55  Flexible contractual structures 50  Risk management services 2011 2015  Market reflective pricing• Small and medium enterprises  Specific offers to reflect market segmentation Consolidation of leading  High quality post-sale service position in Europe 33
    • ... and increase exposure to the retail segment• Larger retail presence in Italy and Europe Retail customers (mln)  Organic growth  Selected M&A opportunities +28% 12 12• Well-proven commercial mix 11  Single brand identity 10 9.4  Distinctive product portfolio 9  Customer driven innovation  Competitive cost to serve 8 7• Well-balanced sales channels 6  Agents 2011 2015  Teleselling  iweb  eni energy stores• Best In Class program ongoing Increasing penetration into more resilient  Marketing & IT innovation  Communication & brand awareness customer segments  Customer care operations 34
    • gradual recovery in profitability Pro-forma adj. EBITDA Bln € Marketing  Supply cost improvement  Benefit from retroactive 2.6 renegotiations in 2012  Impact of retail tariff revision in Italy  Development of integrated trading activities International transport 2011 2012 2015  Resilient profitability despite disposal of European pipelines Snam Marketing & International transport 35
    • Financial OutlookAlessandro Bernini, CFOeni.com
    • Snam deconsolidation: a resulting strong capital structure Net debt Capital employed bln € bln € Snam 15.4 Mkt value of Snam eni’s stake 11.2 6.9 eni 9.9 eni Mkt value 65.3 of eni’s stake 6.9 eni D/E 0.46x eni ROACE 9.8% Snam deconsolidation 0.30x Snam deconsolidation 10.4% Including cash-in <0.20x Including cash-in 11.4% * data at year-end 2011 37
    • 2012-2015 capex: supporting stronger growthbln € Russia/ Snam Caspian 0.5 59.6 2.3 Sub 6.7 2.5 Europe/ 53.3 Sahara1.4 2.8 North2.4 -1.1 America 2.9 7.2 Snam Snam 7.5 Mozambique North OPL245 Africa/ME Jangkrik Far Latam East Skrugard/Havis 44.7 39.1 Uncom- mited 2011-14 Forex E&P Others 2012-15 Committed capex plan effect capex plan Others Saipem R&M G&P E&P 38
    • selective capex plan G&P R&M Chemicals Total €7.2 bln Total €2.8 bln Total €1.6 bln International transport Marketing 0.1 0.9 Stay in Marketing business 0.9 New 0.4 initiatives Efficiency Snam Refining 0.8 0.2 6.2 1.9 Green chemical 0.2  Focus on projects for integration, efficiency and energy saving  Targeted investment to boost organic growth in existing/new profitable businesses 39
    • efficiency programmebln € E&P 11% 5.0 G&P 6% 1.6 Corporate R&M 11% & others 49% 3.1 Chemicals 0.3 20% E&C 2004-05 2006-11 2004-15 3% 2004-05 2006-11 2012-15 achievements achievements target  Almost €600m of savings achieved in 2011  4-year target increased by €600m, mainly in R&M and Chemicals 40
    • increasing cash flow to support investments and reduce debt 2012-15 cash flow*bln € 80  Organic cash-flow more 70 than covers capex requirements 60  Net debt to equity <40% 50 within the plan period at constant perimeter 40  Additional cash-inflows 30 expected from disposals 20  Impact of Snam deconsolidation on free 10 cash-flow broadly neutral 0 E&P G&P R&M E&C Total CF Capex * @ 90$/bl in 2012-13; 85$/bl in 2014-15 41
    • a sustainable dividend policy  2011: dividend +4% in line with our policy  Dividend policy of growth in line with inflation sustainable throughout the four-year plan Confirmed dividend policy 42
    • Closing remarksPaolo Scaroni, CEOeni.com
    • entering a new growth phase A decade of faster, sustainable growth E&P • Raised production targets to 2015 and beyond • Increased exploration effort in highly promising basins Consolidation of leading position in Europe G&P • Improved competitiveness of supply • Medium-term recovery leveraging on secular gas demand growth Restructuring potentialR&M • Continuous focus on efficienciesChem • Profit enhancement through integration, innovation and portfolio refocusing Potential value creation from disposals 44